Amazon recently announced an investment in small nuclear reactors, following a similar commitment by Google just two days prior. This move aims to secure new sources of carbon-free electricity to meet the rising demand from data centers and artificial intelligence (AI) technologies. The urgency for clean energy solutions is underscored by the owner of the decommissioned Three Mile Island nuclear power plant, which plans to restart the reactor to supply power to Microsoft’s data centers.
Both Amazon and Google have been investing in solar and wind technologies to produce electricity without greenhouse gas emissions. However, they are now looking for additional clean energy sources to meet escalating demand and fulfill their commitments to reduce emissions. Nuclear energy offers a promising solution as it generates power without emitting the greenhouse gases associated with fossil fuels like coal, oil, and natural gas.
Global electricity consumption surged last year, driven by the electrification of buildings and vehicles, as well as the increasing energy needs of data centers. The International Energy Agency forecasts that data centers’ electricity consumption may exceed 1,000 terawatt hours by 2026—more than double the 2022 figure. Kevin Miller, VP of global data centers at Amazon Web Services, emphasized the critical role of advanced nuclear capacity in addressing this growing demand.
Energy Secretary Jennifer Granholm expressed enthusiasm for Amazon’s investment, highlighting the importance of “bring your own power” (BYOP) initiatives in expanding data center capabilities. The U.S. government aims for 100% clean electricity by 2035, with small modular reactors playing a vital role in this transition. These reactors can generate about one-third of the power of traditional reactors, and proponents claim they can be built more quickly and cost-effectively.
If clean power sources are not integrated into the growing grid, there is a risk of “browning the grid” by relying on non-renewable energy sources, warned Kathryn Huff, former U.S. assistant secretary for nuclear energy. Currently, no small modular reactors are operational in the U.S., but recent investments may mark a pivotal moment for scaling this technology.
On Monday, Google announced a contract to purchase nuclear energy from multiple small modular reactors planned by Kairos Power, with expectations of bringing the first reactor online by 2030 and contributing 500 megawatts to the grid.
In conjunction with its announcement, Amazon is collaborating with Dominion Energy to explore placing a small modular reactor near its existing North Anna nuclear power station in Virginia. The company is also investing in reactor developer X-energy and working with Energy Northwest in Washington to deploy four X-energy reactors. Collectively, these efforts could yield over 5,000 megawatts of power by the late 2030s, though this remains a small portion of Amazon’s total energy consumption.
Both companies are committed to renewable energy, with Google aiming for net-zero emissions and carbon-free energy 24/7 by 2030. While Google has matched 100% of its global electricity consumption with renewable energy, it has struggled to reduce its overall emissions. Amazon has set a goal of matching its global electricity consumption with 100% renewable energy by 2030 and achieved this target early in 2023, but its direct emissions have still increased.
As the need for reliable, carbon-free power grows, these investments in small modular reactors represent a crucial step toward sustainable energy solutions for tech giants and the wider industry.