Amazon has recently announced a groundbreaking agreement with X-energy and American Electric Power (AEP) to finance the development of a cutting-edge nuclear energy facility in Indiana. This new facility, planned to be constructed in Fairbanks, Sullivan County, aims to replace the outdated Breed Generating Station previously fueled by coal, with a goal of generating up to 960 megawatts of clean, carbon-free energy to power both the regional grid and Amazon’s data centers.

Although no specific timeline has been disclosed for the construction and operation of the facility, Amazon has hinted at the potential creation of 1,000 construction jobs and 100 permanent positions. The proposed plant in Indiana is set to house 12 Xe-100 SMRs (small modular reactors) developed by X-energy, which utilize advanced cooling systems that can be powered by air, water, or a combination of both. This innovative approach is designed to allow the reactors to be deployed in areas with limited water resources without impacting local water supplies.

Interestingly, Indiana is also home to the Marble Hill Nuclear Power Plant, a project that was abandoned in 1983 after significant investments totaling $2.5 billion. The terms of Amazon’s agreement for the new facility in Fairbanks have not been publicly disclosed, making it challenging to compare the costs between the two projects.

This collaboration between Amazon and X-energy marks their second joint venture in the nuclear energy sector, with a shared objective of working with regional utilities to introduce over 5 gigawatts of new nuclear capacity in the United States by 2039. In a similar initiative, Amazon previously unveiled plans for the Cascade Advanced Energy Facility in Washington, which is expected to commence construction towards the end of the decade.

Amazon is among several tech giants, including Meta, Microsoft, and Google, that are exploring nuclear energy projects to power their AI data centers. The company’s commitment to investing in energy grid infrastructure aligns with its broader sustainability goals, as outlined in a recent blog post. While the benefits of these new facilities may not be immediately realized, the long-term impact on clean energy production is promising.