SUNYA Energy

Amazon signs agreements for innovative nuclear energy projects to address growing energy demands

October 16, 2024
SUNYA Summary
- Amazon has signed agreements to develop nuclear energy projects as part of its plan to transition to carbon-free energy. - This initiative aligns with Amazon's goal to achieve net-zero carbon across its operations by 2040. - Amazon recently matched its global electricity consumption with 100% renewable energy, ahead of its 2030 target. - The new agreements focus on the construction of Small Modular Reactors, which are advanced nuclear reactors with a smaller footprint and quicker construction times compared to traditional reactors. - These SMRs will be developed in partnership with Energy Northwest in Washington, capable of generating up to 960 megawatts of power, enough to supply electricity to over 770,000 homes. - Amazon is investing in X-energy, a developer of next-generation SMR reactors, which will be utilized in the Energy Northwest project. - An agreement with Dominion Energy in Virginia aims to explore the development of an SMR project near the North Anna nuclear station, expected to provide at least 300 megawatts of power. - A prior agreement allows for a data center facility to be co-located near Talen Energy's nuclear facility in Pennsylvania, directly powering data centers with carbon-free energy and aiding in the preservation of the existing reactor. - The nuclear energy projects are projected to create temporary construction jobs and permanent positions, boosting local economies. - Amazon is committed to preserving and developing carbon-free energy sources while addressing future energy demands and supporting community development.
PRESS RELEASE
Amazon signs agreements for innovative nuclear energy projects to address growing energy demands

October 16, 2024

New Small Modular Reactor agreements are part of Amazon’s plan to transition to carbon-free energy.

As we continue on our path to net-zero carbon, we recently announced that we matched all of the electricity consumed by our global operations with 100% renewable energy—seven years ahead of our 2030 goal. As the energy needs of our business and customers continue to grow, we’re continuing to invest in renewables while also finding additional sources of carbon-free energy that can both help power our operations and bring new sources of energy to the grid. Nuclear power is one part of that mix—it can be brought online at scale, and has a decades-long record of providing a reliable source of safe carbon-free energy for communities around the world.

Today, we’re announcing that we’ve signed three new agreements to support the development of nuclear energy projects—including enabling the construction of several new Small Modular Reactors (SMRs). SMRs are an advanced kind of nuclear reactor with a smaller physical footprint, allowing them to be built closer to the grid. They also have faster build times than traditional reactors, allowing them to come online sooner.

“Nuclear is a safe source of carbon-free energy that can help power our operations and meet the growing demands of our customers, while helping us progress toward our Climate Pledge commitment to be net-zero carbon across our operations by 2040,” said Matt Garman, CEO of Amazon Web Services (AWS). “One of the fastest ways to address climate change is by transitioning our society to carbon-free energy sources, and nuclear energy is both carbon-free and able to scale—which is why it’s an important area of investment for Amazon. Our agreements will encourage the construction of new nuclear technologies that will generate energy for decades to come.”

Developing new sources of nuclear power with Small Modular Reactors

In Washington, our agreement with Energy Northwest, a consortium of state public utilities, will enable the development of four advanced SMRs. The reactors will be constructed, owned and operated by Energy Northwest, and are expected to generate roughly 320 megawatts (MW) of capacity for the first phase of the project, with the option to increase to 960 MW total—enough to power the equivalent of more than 770,000 U.S. homes. These projects will help meet the forecasted energy needs of the Pacific Northwest beginning in the early 2030s.

We’re also making an investment in X-energy, a leading developer of next-generation SMR reactors and fuel, and X-energy’s advanced nuclear reactor design will be used in the Energy Northwest project. The investment includes manufacturing capacity to develop the SMR equipment to support more than five gigawatts of new nuclear energy projects utilizing X-energy’s technology.

In Virginia, we’ve signed an agreement with utility company Dominion Energy to explore the development of an SMR project near Dominion’s existing North Anna nuclear power station. This will bring at least 300 megawatts of power to the Virginia region, where Dominion projects that power demands will increase by 85% over the next 15 years.

Helping preserve existing nuclear reactors

We also previously signed an agreement to co-locate a data center facility next to the Talen Energy’s nuclear facility in Pennsylvania, which will directly power our data centers with carbon-free energy, and helps preserve this existing reactor.

Investing in local communities

In addition to creating and preserving sources of carbon-free energy, our investments in nuclear energy projects are expected to provide an economic boost for the local communities in which they reside. Our agreement with Energy Northwest is expected to support up to 1,000 temporary construction jobs and as many as 100+ permanent jobs once the SMR project is fully operational, according to Energy Northwest. In Pennsylvania, we’re building a data center campus as part of our investment in Talen Energy, and that project will create construction jobs and bring upgrades to local utility infrastructure. And our investment will also help preserve the 900 local jobs that are already there to keep the facility up and running, according to Talen Energy.

As we continue to create and preserve these sources of safe, carbon-free energy, we’re addressing the future energy demands of our business, making progress toward our sustainability goals, and supporting local communities across the country. We’ll continue to share updates about our progress, and you can learn more about our carbon-free energy efforts.