Amazon Embraces Nuclear Energy for Data Centers
The next major IT giant to support nuclear energy to meet data center demand is Amazon. Google announced earlier this week that it will purchase electricity from Kairos Power, a developer of SMRs. Constellation Energy is powering Microsoft data centers by restarting Three Mile Island.
According to Matthew Garman, CEO of AWS, “we see a need for gigawatts of power in the coming years. There’s not going to be enough wind and solar projects to be able to meet the needs. So nuclear is a great opportunity.” “Moreover, with SMRs, technology is really progressing to the point where new, safe, and easily manufactured technology in a much smaller form will be available.”
Data Center Alley Powering Virginia’s Nuclear Future
About half of all data centers in the United States are in Virginia. Majority are in Loudon County, in a region known as Data Center Alley. Analysts believe that Data Center Alley handles 70% of all internet traffic daily.
Dominion serves about 3,500 megawatts from 452 data centers located throughout its Virginia service zone. Data Center Alley makes up about 70% of it. Generally speaking, a single data center requires at least 30 megawatts, according to Dominion Energy. In a recent quarterly earnings call, Bob Blue, the company’s president and CEO, stated that the utility is currently receiving individual requests for 60 megawatts to 90 megawatts or more. Dominion predicts that for the next 15 years, the demand for power would rise by 85%.
“Small modular nuclear reactors will play a critical role in positioning Virginia as a leading nuclear innovation hub,” said Virginia Gov. Glenn Youngkin in a release. “Amazon Web Services’ commitment to this technology and their partnership with Dominion is a significant step forward to meet the future power needs of a growing Virginia.” AWS plans to invest $35 billion by 2040 to establish multiple data center campuses across Virginia, according to an announcement from Youngkin last year.
Amazon Teams Up with Energy Northwest for SMR Development
According to Garman, everything connected to the grid will benefit from these SMRs, which will power all connected entities, including data centers.
Amazon will finance the development, licensing, and construction of four SMRs in Washington state through a new partnership with Energy Northwest, a group of state public utilities. Energy Northwest will construct, own, and operate the reactors, which will directly supply electricity to the grid, helping to power Amazon.
As per the deal, Amazon would be able to buy power from the first four modules. Up to eight more modules may be built by Energy Northwest. Amazon and Northwest utilities would also have access to that electricity for use in powering residences and commercial buildings.
The technology for the SMRs will come from X-energy, a Maryland-based company that develops fuel and SMRs. Amazon’s Climate Pledge Fund said that it is the primary anchor in a $500 million funding round for X-Energy, in addition to its other announcements. Its corporate venture capital fund, the Climate Pledge Fund, makes investments in start-up sustainability businesses. Ken Griffin, the founder and CEO of Citadel, as well as affiliates of Ares Management Corp., NGP, and the University of Michigan, are among the other investors.
X-energy and Amazon Leading Advanced Nuclear Energy
According to X-energy CEO J. Clay Sell, “Amazon and X-energy are poised to define the future of advanced nuclear energy in the commercial marketplace.” “We must bring clean, safe, and dependable electrons onto the grid with tested technologies that can scale and grow with demand if we are to fully realize the opportunities offered by artificial intelligence.”
Amazon is investing over $500 million in tiny modular reactors. Billions of dollars have been invested in the creation of clean energy by the Biden administration. U.S. Energy Secretary Jennifer Granholm stated that additional funding of $900 million is now available for those wishing to install more SMRs as part of this AWS announcement.
Conclusion
For a number of reasons, including national security, we want these data centers to be constructed in the United States. To be able to do that, we need more electricity, and we want that power to be clean power, Granholm stated.
AWS signed a contract to buy nuclear power from Talen Energy’s Susquehanna Steam Electric Station, a nuclear power plant located in Salem Township, Pennsylvania, last spring as part of its investment in a nuclear energy initiative. For $650 million, AWS also acquired the nearby data center campus that is powered by nuclear power from Talen.
By Kamille Collins
Sources:
cnbc: Amazon goes nuclear, to invest more than $500 million to develop small modular reactors
france24: Amazon joins Google, Microsoft in going nuclear
thewashingtonpost: The deal reopening Three Mile Island to power AI
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Inset Image Courtesy of Xabier Cid – Creative Commons License
