The nuclear energy sector is experiencing a surge in interest, and a major player has just entered the game. Amazon Web Services (AWS), the cloud computing arm of tech giant Amazon.com, announced a massive $500 million investment in nuclear power, sending ripples through the industry and driving up the stock prices of several nuclear energy companies.
AWS is taking a significant step towards supporting the development of new nuclear energy projects. On Wednesday, the company signed three new agreements to back the construction of multiple Small Modular Reactors (SMRs), a type of nuclear reactor designed for smaller-scale power generation. This investment demonstrates Amazon’s commitment to clean energy and its efforts to address climate change.
One of the key partnerships is with Energy Northwest in Washington, where AWS will be involved in building four advanced SMRs. These reactors are projected to generate approximately 320 MW of capacity initially, with the potential to expand to 960 MW in total. This project signifies a significant investment in the future of nuclear energy in the United States.
Another notable agreement is with X-energy, a company developing advanced nuclear reactor designs. AWS will be utilizing X-energy’s technology in the Energy Northwest project and investing in manufacturing capacity to support over five gigawatts of new nuclear energy projects. This collaboration underscores the potential of advanced reactor designs in the nuclear industry.
AWS also signed an agreement with Dominion Energy in Virginia to explore the development of an SMR project near Dominion’s North Anna nuclear power station. This project could bring at least 300 MW of power to the region, further showcasing the potential of SMRs to provide clean energy solutions.
The decision by Amazon to invest heavily in nuclear power is driven by the company’s commitment to reaching net-zero carbon emissions across its operations by 2040. “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.
Amazon’s investment in nuclear power comes as other tech giants are also exploring nuclear energy as a solution to meet the rapidly growing energy demands of their data centers, particularly due to the rise of artificial intelligence (AI). Google recently announced a deal to purchase power from a fleet of SMRs from Kairos Power. The first reactor is expected to be online by 2030, with more reactors anticipated through 2035.
The news of Amazon’s investment has sparked a significant rally in the nuclear energy sector. Oklo Inc, a company developing fast fission power plants, saw its stock price surge by 27.6%. NuScale Power Corp, a provider of advanced SMR nuclear technology, experienced an 8.81% jump in its share price. Nano Nuclear Energy Inc, an early-stage nuclear energy company, saw its stock climb by 5.01%. Lightbridge Corp, focused on advanced nuclear fuel technology, witnessed an 11.7% rise in its share price.
As technology companies increasingly recognize the importance of clean and reliable energy sources, the nuclear energy sector is poised for growth. Amazon’s substantial investment in nuclear power is a testament to the growing interest in this technology and its potential to play a key role in addressing climate change and meeting the world’s energy needs.