In a landmark move that underscores the evolving energy landscape, Amazon announced a partnership with Dominion Energy to fund the development of a small modular reactor (SMR) at the North Anna Power Station in Virginia.
This agreement is part of Amazon’s ambitious mission to achieve zero carbon emissions by 2040. Such initiatives signal a potential turning point not only for Amazon but also for the entire tech industry, which has faced increasing scrutiny over its energy consumption and environmental impact.
Beyond Virginia, Amazon is also collaborating with Energy Northwest to invest in a second SMR project in Washington state.
This dual commitment is a reflection of Amazon’s broader strategy to diversify its renewable energy portfolio, moving beyond solar and wind power toward nuclear energy – a stable, zero-carbon source that can meet the intensive energy demands of data centers without contributing to climate change.
Why Nuclear? The rise of small modular reactors
A small modular reactor (SMR) is a newer form of nuclear technology that is smaller and more flexible compared to traditional nuclear reactors.
Designed with an eye toward scalability and efficiency, SMRs can be manufactured off-site and assembled on location, significantly reducing the complexities involved in building a traditional nuclear plant.
These reactors have a smaller footprint, are more cost-effective to install, and offer a faster deployment timeline.
One of the biggest advantages of SMRs is their ability to provide a steady source of power without the carbon emissions that come from fossil fuels. Unlike solar or wind energy, which can fluctuate based on environmental conditions, nuclear power provides a continuous energy supply – a critical requirement for data centers, which need to maintain uptime 24/7.
As Matt Garman, CEO of Amazon Web Services, said during the announcement, “There’s a ton that we need to do between here and there, and there’s a lot of work that needs to go into this, but this is a really important milestone that we’re celebrating today.”
With a goal of achieving carbon neutrality by 2040, Amazon is pioneering a new era for corporate energy use.
Data Centers and the need for reliable, clean energy
The backdrop to this initiative is Amazon’s growing network of data centers, with a particular concentration in Northern Virginia, which hosts about 70% of the world’s data centers.
These facilities are essential for everything from cloud computing to artificial intelligence, and they consume a significant amount of energy, enough to pose environmental concerns ranging from increased carbon emissions to local land clearing, water use, and noise pollution.
For Dominion Energy, the partnership with Amazon offers a way to mitigate risks while advancing SMR technology.
“We’re very happy to partner with AWS,” said Ed Baine, president of Dominion Energy Virginia.
He added that the agreement, structured as a memorandum of understanding (MOU), is designed to help spread the financial risks associated with the new technology, while also potentially making the technology available to other customers in the future.
With data centers consuming nearly one gigawatt of power, equivalent to the output of a traditional nuclear reactor, the need for reliable, sustainable energy has never been greater.
The proposed SMR at North Anna Power Station could generate about 300 megawatts of electricity, enough to power approximately 300,000 homes. While this is less than a traditional nuclear reactor, SMRs offer scalability that could meet the energy needs of future data centers more efficiently.
SMRs and the path to commercial viability
While small modular reactors present an appealing solution for meeting clean energy targets, they are not without challenges.
At present, SMRs are still a developing technology.
They are not yet commercially viable outside of countries like Russia and China, where government support has accelerated their deployment. However, the investment by Amazon and Dominion Energy marks a significant step toward changing that dynamic in the United States.
Federal, state, and local officials, including U.S. Department of Energy Secretary Jennifer Granholm, have voiced support for Amazon’s venture into nuclear energy.
Such backing is crucial for getting through the regulatory and development hurdles that often slow down nuclear projects. As public and private sectors come together, the hope is that SMRs could soon become a commercially viable, widespread solution for power generation.
A future powered by diverse energy solutions
Amazon’s new agreements with Dominion Energy and Energy Northwest reflect a pivotal approach to addressing the company’s massive energy needs in a sustainable way.
Data centers, particularly those supporting cloud services and AI, are notorious for their energy intensity. Traditional methods of energy generation simply can’t keep up with the surge in demand without significantly contributing to greenhouse gas emissions.
“To achieve a carbon-neutral future by 2040, Amazon knew it had to explore every available option,” says Dan Bisset, VP of North America for Astute People Inc.
“Investing in small modular reactors alongside renewable resources like solar and wind ensures a balanced and resilient power strategy. This isn’t just about meeting targets, it’s about setting new standards for what’s possible in corporate sustainability.”
The SMR projects are part of a broader commitment to achieving carbon neutrality in Amazon’s operations, including its data centers.
For years, Amazon has invested heavily in renewable energy projects, becoming one of the largest corporate buyers of renewable power globally. However, even with significant investments in wind and solar, gaps in reliability have remained – gaps that nuclear power can help to bridge.
Beyond the immediate energy demands, SMRs could also provide the local community with additional benefits, such as economic growth and job creation.
While the timeline for commercial deployment remains unclear, Amazon’s funding can accelerate the feasibility studies and prototype development that will eventually make SMRs a reality in the U.S.
Implications for the Tech Industry and beyond
Amazon’s announcement is not only significant for its own operations but also sets a precedent for the broader tech industry.
As climate change becomes an ever-pressing concern, more companies are looking for ways to decouple their growth from carbon emissions.
By taking such bold steps into nuclear energy, Amazon is leading by example and showing other tech giants that carbon neutrality is achievable, even for the most energy-intensive industries.
This move also raises the stakes for governments and private companies alike to think creatively about how to meet the growing energy needs of our increasingly digital world.
Energy Northwest and Dominion Energy’s involvement highlights that it’s not just tech companies pushing the envelope, but also utility companies ready to evolve and take calculated risks for a greener future.
A milestone on the path to sustainability
Amazon’s investments in small modular reactors in partnership with Dominion Energy and Energy Northwest represent a forward-thinking approach to sustainability in one of the most energy-intensive sectors, data centers.
As the tech industry continues to evolve and expand, energy needs will only grow, and initiatives like this show that solutions are possible with a combination of innovation, collaboration, and commitment.
Nuclear energy, especially through SMRs, has the potential to become an essential part of the equation, ensuring that our digital lives are powered by clean, sustainable energy.
Amazon is taking a calculated yet bold step in the right direction. It’s an exciting time for energy innovation, and this partnership may well become a blueprint for other corporations eager to balance their energy needs with environmental responsibility.
