Amazon Web Services is investing more than $500 million in nuclear power, announcing three projects from Virginia to Washington state. Amazon AWS, AmazonThe company’s cloud computing subsidiary has seen growing demand for clean energy as its services expand into generating artificial intelligence. It’s also part of Amazon’s path to net-zero carbon emissions.
AWS announced that it has signed an agreement with AWS Dominion EnergyThe Virginia utility is exploring the development of a small modular nuclear reactor (SMR) near Dominion’s existing North Anna nuclear power plant. Nuclear reactors produce no carbon emissions.
SMRs are an advanced type of nuclear reactor that have a smaller footprint and can be built closer to the grid. They also take less time to build than traditional reactors, allowing them to come online faster.
Amazon Web Services Data Center in Stoneridge, Virginia, USA, Sunday, July 28, 2024. How artificial intelligence in power is helping drive electricity demand.
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Amazon is The latest big tech companies Purchase nuclear power to provide fuel Growing demand for data centers. Earlier this week, Google announced that it will purchasing power From SMR developer Kairos Power. Constellation Energy yes Restarting Three Mile Island Power on Microsoft data center.
AWS CEO Matthew Garman said: “We see demand for gigawatts of power in the next few years, but there will not be enough wind and solar projects to meet the demand, so nuclear power is a good opportunity. “In addition, this Technology is indeed advancing to the point where SMR will be a new technology that is safe and easily manufactured in smaller forms. “
Virginia is home to nearly half of the data centers in the United States, with an area in northern Virginia known as Data Center Alley, the majority of which is located in Loudoun County. It is estimated that 70% of the world’s Internet traffic passes through data center lanes every day.
Dominion provides approximately 3,500 megawatts of power through 452 data centers throughout its service area in Virginia. About 70% is located in Information Center Lane. According to Dominion Energy, a single data center typically requires about 30 megawatts or more. The utility is now receiving individual requests for capacity ranging from 60 megawatts to 90 megawatts or more, President and CEO Bob Blue said on a recent quarterly earnings call. Dominion expects electricity demand to grow 85% over the next 15 years. AWS expects the new SMR to bring at least 300 megawatts of power to the Virginia region.
On Tuesday, February 20, 2024, a Dominion Energy vehicle was parked near the company’s headquarters in Richmond, Virginia, USA.
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“Small modular nuclear reactors will play a critical role in positioning Virginia as a leading center for nuclear innovation,” Virginia Governor Glenn Youngkin said in a press release. “Amazon Web Services is a key contributor to this effort. “The promise of the technology and partnership with Dominion is an important step toward meeting Virginia’s growing future power needs.”
According to Youngkin’s announcement last year, AWS plans to invest $35 billion after 2040 to build multiple data center campuses in Virginia.
“These SMRs will feed power directly to the grid, so they will power everything, part of which is the data center, but everything plugged into the grid will benefit,” Garman added.
Amazon also announced a new agreement with utility Energy Northwest, a consortium of state utilities, to fund the development, permitting and construction of four SMRs in Washington state. The reactors will be built, owned and operated by Northwest Energy, but will provide energy directly to the grid, which will also power Amazon’s operations.
Under the agreement, Amazon will have the right to purchase power for the first four components. Northwest Energy has the option to build up to eight additional modules. Amazon and utilities across the Northwest can also use the power to power homes and businesses.
The SMR will be developed using technology from Maryland-based X-energy, a developer of SMRs and fuels. In addition to Amazon’s other announcements, Amazon’s Climate Pledge Fund revealed that it is the lead investor in X-Energy’s $500 million funding round. The Climate Pledge Fund is its corporate venture capital fund that invests in early-stage sustainability companies. Other investors include Citadel founder and CEO Ken Griffin, affiliates of Ares Management Corp., NGP and the University of Michigan.
“Amazon and X-energy are poised to define the future of advanced nuclear power in commercial markets,” said J. Clay Sell, CEO of X-energy. “To fully realize the opportunities presented by artificial intelligence, we must leverage proven technologies that will Bringing clean, safe and reliable electronics to the grid, these technologies can scale and grow based on demand.”
The Biden administration has invested billions of dollars in clean energy production. As part of the AWS announcement, U.S. Energy Secretary Jennifer Granholm said $900 million in new funding is now available for companies looking to deploy more SMRs.
U.S. Department of Energy Secretary Jennifer Granholm attends a meeting of the House Energy and Water Development and Related Agencies Subcommittee on March 20, 2024 in Washington, DC.
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“We want these data centers to be built in the United States for a number of reasons, including national security reasons. We need additional power to do that, and we want that power to be clean power,” Granholm said.
Last spring, AWS invested in a nuclear energy project conversation energysigned an agreement to purchase nuclear power from the company’s existing Susquehanna Steam Generating Station, a nuclear power plant located in Salem Township, Pennsylvania. AWS also purchased an adjacent nuclear power data center campus from Talen for $650 million.
