Amazon has committed to funding the construction of a new nuclear power plant in Indiana, featuring 12 small modular reactors designed by X-energy. This facility, set to be operational at the site of a former coal power plant near Terre Haute, aims to generate 960 megawatts of power. The utility company American Electric Power (AEP) will oversee plant operations, and Amazon will be the initial buyer of the generated electricity, partly using it to power its data centers. This project marks Amazon’s second and substantially larger deal with X-energy, building on their previous agreement from two years ago.

X-energy, now publicly traded since its April IPO, specializes in small modular nuclear reactors, which they hope will revitalize the U.S. nuclear industry with more manageable costs and construction timelines compared to traditional large-scale plants. The new Indiana facility will utilize the company’s Xe-100 reactors and represents part of a larger ambition shared by Amazon and X-energy to develop 5 gigawatts of nuclear generating capacity in the U.S. by 2039. Despite their optimism, the timeline depends on X-energy’s progress with its initial project at Dow Chemical’s Seadrift plant in Texas, which has faced regulatory challenges and has yet to begin construction.

The plan to situate these advanced reactors at a former coal plant site holds strategic importance for energy transition and grid integration. Unlike many emerging nuclear proposals, this project will connect directly to the public grid, allowing broader access to clean energy while supporting Amazon’s own infrastructure needs. The utilization of small modular reactors aims to leverage modular manufacturing advantages to improve project scalability and economic viability, although experts note that the positive impacts of mass production may take about a decade to manifest fully.

Amazon’s involvement comes amid cautious investor sentiment surrounding X-energy, whose stock has seen volatility since its market debut. Nevertheless, the announcement boosted X-energy’s shares slightly during premarket trading. The partnership signifies a forward-looking approach by Amazon to invest in clean energy innovations critical for decarbonizing data infrastructure, while supporting regulatory frameworks and technological advancements that could transform the nuclear power landscape in the coming decades.