Amazon has announced a significant move in its ongoing effort to transition to carbon-free energy sources. On October 16, 2024, the company revealed that it had signed agreements to support the development of several Small Modular Reactors (SMRs), an advanced form of nuclear technology. These agreements are pivotal in Amazon’s plan to meet increasing energy demands and achieve net-zero carbon emissions by 2040. The deals are part of Amazon’s broader strategy to diversify its renewable energy portfolio, which already includes 100% renewable energy for its global operations—achieved seven years ahead of schedule.
"Nuclear is a safe source of carbon-free energy that can help power our operations and meet the growing demands of our customers while helping us progress toward our Climate Pledge commitment to be net-zero carbon across our operations by 2040," said Matt Garman, CEO of Amazon Web Services (AWS).
Amazon’s latest agreements focus on constructing SMRs, a cutting-edge technology that promises faster build times and the ability to scale. SMRs have a smaller physical footprint than traditional nuclear reactors, making them ideal for deployment near the grid and better suited to meet local energy needs. Unlike conventional reactors, SMRs can be constructed more quickly, enabling them to come online sooner and provide a long-term, stable energy source.
Amazon’s investments in nuclear energy align with its growing energy needs. As the demand for cloud services and e-commerce continues to surge, AWS and other Amazon services are consuming increasing electricity. SMRs offer a reliable, carbon-free solution to power these operations sustainably.
Amazon has signed three major agreements to advance SMR development across multiple U.S. states:
Amazon’s investment in nuclear energy is not just about meeting its energy demands—it is also expected to provide significant economic benefits to the regions involved. Once the reactors are operational, the Energy Northwest project in Washington will create up to 1,000 temporary construction jobs and more than 100 permanent jobs. Additionally, Amazon’s partnership with Talen Energy in Pennsylvania, which includes a data center co-located with a nuclear facility, is helping to preserve 900 local jobs while upgrading local utility infrastructure.
“We are addressing the future energy demands of our business, making progress toward our sustainability goals, and supporting local communities across the country,” an Amazon spokesperson said.
Amazon’s SMR projects have garnered political support, particularly in states like Virginia. Senator Tim Kaine praised the agreement between Amazon and Dominion Energy, noting that "Virginia is well-positioned to be a leader in energy innovation and job creation." Governor Glenn Youngkin also lauded the initiative, stating that "small modular nuclear reactors will play a critical role in positioning Virginia as a leading nuclear innovation hub."
Nuclear energy has long been seen as a stable and efficient source of carbon-free power. Amazon’s embrace of SMRs marks a significant shift toward adopting advanced nuclear technology to meet its ambitious climate goals. Unlike solar and wind, nuclear power can continuously generate large amounts of energy, making it a key player in transitioning to a carbon-neutral energy future.
"Our agreements will encourage the construction of new nuclear technologies that will generate energy for decades to come," said Matt Garman. He emphasized that transitioning to carbon-free energy sources, including nuclear, is one of the fastest ways to address climate change.
While Amazon’s investment in SMRs is a forward-thinking step toward achieving its carbon-free energy goals, the company should also be mindful of the potential environmental risks associated with nuclear energy. Although SMRs are considered safer and more efficient than traditional nuclear reactors, they still generate radioactive waste that must be carefully managed. Additionally, the long-term risks of accidents, though reduced with advanced technology, cannot be eliminated.
Environmental advocates often point out that renewable energy sources, like wind and solar, present fewer risks and have a quicker path to deployment without the concerns linked to nuclear energy. As Amazon moves forward with these projects, it will be crucial to balance the promise of SMRs with a transparent approach to addressing waste disposal, safety, and the overall environmental footprint. By doing so, Amazon can ensure that its investments in nuclear energy align with its broader sustainability goals while maintaining its leadership in corporate environmental responsibility.
