Amazon Backs 12 Small Modular Nuclear Reactors in Indiana to Power Data Centers

The tech industry's push to secure baseload power for artificial intelligence infrastructure has driven Amazon to back a fleet of unproven small modular reactors (SMRs). The company announced an agreement on Monday to help fund the development of 12 advanced nuclear reactors in Indiana, partnering with utility American Electric Power (AEP) and reactor developer X-energy.[1][2]

The proposed facility would generate 960 megawatts of electricity, enough to power roughly 700,000 homes, though its primary purpose is to feed Amazon's expanding data center footprint. The reactors are slated for a site in Sullivan County, Indiana, near the former Breed coal plant, utilizing existing grid infrastructure to accelerate deployment.[1][4]

Amazon's investment provides early-stage development capital for the project, though the companies have not disclosed the specific financial terms. The deal marks the second major collaboration between Amazon and X-energy, following a broader agreement aimed at bringing at least 5 gigawatts of new SMR capacity online in the United States.[3][4]

The Mechanism Behind the Deal

The technology at the center of the deal, X-energy's Xe-100 high-temperature gas-cooled reactor, exists only on paper and in component testing. Unlike traditional light-water reactors, the Xe-100 uses helium gas as a coolant and is designed to produce 80 megawatts of electricity per unit. The Indiana project would cluster 12 of these units together.[2][4]

AEP, which operates across 11 states, will evaluate the feasibility of the project and navigate the complex regulatory approval process. "This partnership allows us to explore a new, carbon-free generation resource that can meet the growing needs of our customers, including large technology companies like Amazon," the utility stated in its announcement.[1][5]

The timeline for the Indiana project remains highly speculative. No commercial SMR is currently operating in the United States, and the Nuclear Regulatory Commission's licensing process for novel reactor designs typically takes several years. The earliest projected deployment dates for SMRs in the US hover around 2030, assuming no major regulatory or construction delays.[2][6]

The Context of Tech's Nuclear Push

The agreement highlights a growing tension between the tech sector's climate commitments and its energy demands. Training and running large language models requires massive amounts of electricity, forcing companies like Amazon, Microsoft, and Google to look beyond intermittent renewable sources like wind and solar to guarantee 24/7 power for their facilities.[1][3]

By locating the proposed reactors near a retired coal plant, the partners aim to bypass one of the most significant hurdles in new energy development: grid interconnection. The Breed site already possesses the transmission lines and water access necessary for a large-scale power plant, potentially shaving years off the project's development timeline.[4][5]

The success of the Indiana project hinges on X-energy's ability to transition its Xe-100 design from concept to commercial reality. The company must finalize its engineering, secure federal approval, and demonstrate that it can manufacture the modular components at scale—a challenge that recently forced another SMR developer, NuScale, to cancel its flagship project in Idaho.[2][4]

What Happens Next

If successful, the 960-megawatt facility would represent a significant milestone for both the advanced nuclear industry and the tech sector's energy strategy. However, until the first unit is licensed, built, and connected to the grid, the project remains a high-stakes bet on a technology that has yet to prove its commercial viability.[1][6]