### Amazon Invests Half a Billion in Nuclear Energy Projects to Power AI

Amazon is stepping into the nuclear energy sector to address the increasing electricity demands driven by artificial intelligence (AI) programs. Amazon Web Services (AWS), the company’s cloud computing arm, announced a significant investment exceeding $500 million in three new projects—located in Washington state, Virginia, and Pennsylvania.

In Virginia and Washington state, AWS has committed funding towards the feasibility studies for integrating small modular reactors (SMRs) into existing power infrastructures. These preliminary studies are a step towards AWS securing the rights to purchase power from an initial setup of four SMRs, with Energy Northwest potentially upgrading the capacity to eight 80-MW modules. This expansion could generate a total capacity of up to 960 MW, enough to power more than 770,000 US homes, benefiting both Amazon’s operations and local utilities.

The project in Virginia involves a collaboration with the state's utility company to place an SMR near an existing power station in Louisa County. SMRs are distinctive for their smaller size and modular nature, allowing parts to be manufactured in factories and assembled on-site. This method promises more flexibility and potentially lower costs compared to the traditional, larger nuclear reactors that are built directly at their operational sites.

Matt Garman, CEO of AWS, emphasized the long-term benefits, stating, “Our agreements will encourage the construction of new nuclear technologies that will generate energy for decades to come.” Despite the advantages, critics argue that SMRs may still be too expensive to realize the anticipated economies of scale.

Nuclear energy, while controversial, is widely supported across the political spectrum due to its capability to generate electricity with minimal greenhouse gas emissions and its creation of high-paying union jobs. However, challenges remain. No US SMRs are currently operational, and the only US company with a licensed SMR design, NuScale, had to cancel its first project intended for an Idaho lab last year. Additionally, SMRs generate long-term radioactive waste, for which the US lacks a final storage solution.

Amazon is not alone in this initiative. Just this week, Google announced signing the world's first corporate agreement to procure power from multiple SMRs to meet AI energy needs. Google's partnership with Kairos Power is expected to see the first reactor become operational by 2030, with several more by 2035, although financial details and specific locations have not been disclosed. Google's agreement aims to secure 500 MW from six to seven smaller reactors.

The urgency for these investments is underscored by predictions from Goldman Sachs, estimating that US data center electricity use will nearly triple between 2023 and 2030, necessitating an additional 47 gigawatts of new generation capacity. This immense demand has spurred companies to explore sustainable and scalable energy solutions, such as natural gas, wind, solar, and now, nuclear power.