Amazon Goes Nuclear: Invests $500 Million In Small Modular Reactors
Amazon Web Services (AWS) has taken a huge step into working with green energy, announcing on Monday it will invest more than $500 million in small modular nuclear reactors>
AWS, Dominion Energy Team Up for Nuclear Innovation
AWS has signed an MoU with Dominion Energy, the top diversified utility in Virginia to examine locating a small modular nuclear reactor (SMR) near their North Anna Power Station which is “home” for both synchronous and asynchronous data centers. The deal, announced by the companies on Wednesday and accelerating AWSs broader shell of its expanding AI data center power demands even as it pledges to employ nothing but clean, carbon-free fuels going forward.
SMRs are streamlined versions to be situated near existing power grids, and their construction can happen at much shorter timescales than traditional reactors.
Growing Energy Demand in Virginia – and Amazon has a Plan
The demand for power is poised to explode in the state, where it already hosts nearly half of all U.S. data centers – including Loudoun County’s famed “Data Center Alley.” There are 452 data centers in Virginia right now, and demand is expected to skyrocket by the end of its Energy Share initiative’s life span; 85% over that time. The new SMR project from AWS is being developed in to bring at least 300 megawatts to the area, which should help serve this industry that’s only growing.
The announcement was celebrated by Governor Glenn Young kin, who identified the project as integral to positioning Virginia at the helm of nuclear innovation and securing AWS’s investment in advancing SMR technology and clean energy.
Washington State Expands Energy Northwest
Amazon also recently announced to build four SMRs with Energy Northwest in Washington state. As part of the collaboration, Amazon will invest in an initial feasibility phase working toward designing 12 more reactors. The initial four units will produce 320 megawatts of power, which should be enough for Amazon’s use as well a contribute to the local electricity grid.
Maryland company X-energy, which has been developing its technology for high-temperature gas-cooled reactors, to provide the basis of Terra Power’s project. Amazon has signed a services agreement worth more than $625 million over seven years with X-energy and made an initial investment of $25m in the start-up as part of that deal; it is also anchoring a new, $500m financing round to help fund completion of the company’s reactor design and licensing.
Big Tech Intention to Go Nuclear
Nuclear power is reportedly a way to provide AI-powered data centers with consistent, uninterrupted electricity. Related Wind and solar factors, which depend on the weather may not provide a continuous energy supply compared to nuclear reactors with runs around the clock can be quite practical for data centers that demand constant power.
AWS’s grant other tech giants. As well as Google, Microsoft has confirmed that it is turning to nuclear power with plans to bring the Three Mile Island plant back online in order to supply its data centers.
Mounting Challenges of the Regulatory Approvals
Although there is an enormous potential, SMR projects are faced with long-winded regulatory and commercial uncertainties. While the high costs led some to delay, or even reconsider projects (ARR 2012), by January 2023 the U.S. Nuclear Regulatory Commission that year approved its first SMR design [US NRC(2014)], and others are under review. As such, Amazon will have quite the task ahead if it is to hit its target of 5GW worth of new SMR projects by 2039.
Solutions to Environmental Issues
Nuclear energy, meanwhile a carbon-free form of power (though uranium mining and radioactive waste are problems that have yet to be properly addressed), still has significant long-term environmental consequences. Environmentalists are pressing tech companies to pay attention not just only how much power they need but from what sources; ideally, the energy would come either from renewables like wind and solar or (to a lesser extent) nuclear.
Conclusion of Amazon’s plans for the sustainable future
A foray into nuclear power is Amazon’s latest step in its forward plan to achieve net-zero carbon emissions. The company is also examining several other nuclear projects, including one for buying power from the Susquehanna Steam Electric Station in Pennsylvania. In addition to ramping up SMR research, a move in line with broader efforts by the Biden administration to grow clean energy production throughout America and $900 million in new annual funding for deployment of SMRs
Amazon is investing in nuclear energy to protect a long-term power supply for its growth and become part of shaping the future of advanced nuclear technology.
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