The nuclear energy sector is experiencing a surge in optimism as tech giants like Amazon and Google embrace atomic power for their data centers. This trend is evident in the recent investments made by these companies, specifically in Small Modular Reactors (SMRs), which are gaining traction as a cleaner and more efficient power source.
Last week, Amazon Web Services (AWS) announced three significant partnerships to advance nuclear energy projects. One of these partnerships involves Energy Northwest in Washington, where AWS is aiming to develop an initial 320 MW of SMR capacity, with potential expansion to 960 MW. Another partnership with Dominion Energy in Virginia focuses on exploring SMR deployment near the North Anna nuclear station, with the goal of generating at least 300 MW of power. Additionally, Amazon has invested in X-energy to support SMR manufacturing, potentially generating five gigawatts of nuclear capacity.
Matt Garman, CEO of AWS, highlighted the alignment of nuclear energy with Amazon’s Climate Pledge, a commitment to achieving net-zero carbon emissions by 2040. This commitment underscores the growing importance of sustainable energy solutions for tech companies.
Google has also joined the nuclear energy movement by signing an agreement to purchase power from a series of SMRs developed by Kairos Power. The first reactor is expected to be operational by 2030, with additional reactors planned by 2035.
These investments by Amazon and Google are a testament to the growing trend of tech companies seeking carbon-free energy sources to meet the escalating power demands of their data centers, especially those fueled by artificial intelligence (AI). These announcements have created a positive ripple effect, boosting investor confidence in the nuclear energy sector.
The market has responded favorably to these developments. Oklo Inc. (OKLO) shares saw a 6.81% increase, trading at $19.29. Lightbridge Corporation (LTBR) shares rose by 26.1%, reaching $7.48, while Nano Nuclear Energy Inc. (NNE) shares gained 4.79%, trading at $19.27.
As the tech industry continues its push for sustainable energy, nuclear energy is poised to play a significant role. The recent investments by Amazon and Google signal a turning point, propelling the sector toward a brighter future.