Google this week announced the signing of a deal with startup Kairos Power to purchase nuclear power from several small modular reactors for its AI-enabled data centers. Now, the Amazon Web Services (AWS) group has copied the brand with three different investments to take advantage of nuclear electricity.
The commitment of technology companies to nuclear energy does not stop growing. In a press release, Amazon confirmed yesterday that it had signed three agreements for innovative projects for the development and installation of small modular reactors.
The difference between classic nuclear reactors and the small ones that both Google and Amazon are interested in is their construction method. Its components can be manufactured in a production facility and do not have to be done on site. This considerably reduces costs.
In total, AWS has chosen three firms:
- Energy Northwest
- Dominion Energy
- X-Energy
Like Google, it seems that Jeff Bezos’ brand wants to use the energy generated for its data centers. In fact, the chosen companies work in areas where they have data centers. With each company, Amazon has reached a different agreement. Two of them will house small modular nuclear reactors and another will be in charge of the design. Below, we explain all the details.
Amazon’s deal with Energy Northwest
Energy provider Energy Northwest is responsible for delivering power to utilities in the Pacific Northwest. As a starting point, Amazon has contributed money to the brand to study the feasibility of implementing small modular reactors at its Columbia generating station. Right now, they only have a single huge reactor there.
Amazon’s investment in Energy Northwest will give it the right to purchase power from an initial facility of four small modular reactors. However, the brand will be able to provide other electricity users if they develop additional reactors to those that AWS would need.
Amazon’s pact with Dominion Energy
On the other hand, Amazon has also reached an alliance with Dominion Energy, which provides its services in Virginia. Like Energy Northwest, they would have to add small modular reactors to their nuclear power plant, located in North Anna.
In this case, the contract details that the companies “will jointly explore innovative ways to advance the development and financing of small modular reactors, while mitigating potential development costs and risks.” It is not very clear how Amazon will leverage its investment.
The collaboration between Amazon and X-Energy
The third agreement will go ahead if one of the other two mentioned does so. This is because in the contract they say that the designs of the small modular reactors that will be used will be created by the company X-Energy.
In this case it is a direct investment and it is not so much about the investigation of how feasible it is to place a reactor as in the case of Dominion Energy and Energy Northwerst. However, Amazon has not clarified how much money it will give.
As clarified by X-Energy, Jeff Bezos’ brand is “anchoring” an investment round of 500 million dollars. This money will be used to finalize the reactor design the company is already planning and also to push it through the necessary regulatory approval process.
Small modular nuclear reactors have a limited size so they can be manufactured in parts at a central facility. It is after their production that these are sent to the power plant for assembly. This not only provides great flexibility in development, but reduces expenses. It is for this reason that Amazon has opted for X-Energy, which is making efforts in its development.
