Amazon Web Services signed agreements to buy electricity from four small nuclear reactors being developed by X-energy, while Google ordered six to twelve reactors from Kairos Power in deals that will determine whether artificial intelligence systems can keep running without overwhelming the electrical grid. The tech giants need reliable, carbon-free power to run data centers that process billions of AI queries daily, and they've concluded that wind and solar can't meet that demand alone.
X-energy will build four 80-megawatt reactors for Amazon, with the first coming online in 2030, while Kairos Power will supply Google with reactors producing 50 megawatts each starting in 2030. These small modular reactors, known as SMRs, cost billions to develop but promise steady power output that doesn't depend on weather conditions like renewable sources. The deals represent the first major commercial orders for next-generation nuclear technology that has spent years in development.
Amazon's nuclear push follows its $650 million purchase of a Pennsylvania data center campus that includes a direct connection to the nearby Susquehanna nuclear plant, showing the company wants guaranteed power supplies rather than relying on grid operators. The companies chose SMRs because they can be built faster and cheaper than traditional nuclear plants.
X-energy, led by CEO Clay Sell, uses helium-cooled reactors with uranium fuel that's encased in protective spheres, while Kairos Power employs molten salt cooling with a ceramic fuel that melts at high temperatures. Both designs are intended to be safer than conventional reactors by using passive cooling systems that don't require operator intervention during emergencies. The companies must still obtain approval from the Nuclear Regulatory Commission, which has already issued a construction permit to Kairos for a demonstration reactor in Tennessee.
Amazon and Google have committed to paying fixed prices for nuclear electricity. The success of these reactors could determine whether the United States meets its climate goals while maintaining the power reliability needed for an increasingly digital economy.
Amazon Web Services signed agreements to buy electricity from four small nuclear reactors being developed by X-energy, while Google ordered six to twelve reactors from Kairos Power in deals that will determine whether artificial intelligence systems can keep running without overwhelming the electrical grid. The tech giants need reliable, carbon-free power to run data centers that process billions of AI queries daily, and they've concluded that wind and solar can't meet that demand alone.
X-energy will build four 80-megawatt reactors for Amazon, with the first coming online in 2030, while Kairos Power will supply Google with reactors producing 50 megawatts each starting in 2030. These small modular reactors, known as SMRs, cost billions to develop but promise steady power output that doesn't depend on weather conditions like renewable sources. The deals represent the first major commercial orders for next-generation nuclear technology that has spent years in development.
Amazon's nuclear push follows its $650 million purchase of a Pennsylvania data center campus that includes a direct connection to the nearby Susquehanna nuclear plant, showing the company wants guaranteed power supplies rather than relying on grid operators. Google calculated that its AI systems alone could consume as much electricity as entire countries by 2030, making the reliability of nuclear power essential for maintaining services like Search and Gmail. The companies chose SMRs because they can be built faster and cheaper than traditional nuclear plants, with the first units expected to cost around $1 billion each.
X-energy, led by CEO Clay Sell, uses helium-cooled reactors with uranium fuel that's encased in protective spheres, while Kairos Power employs molten salt cooling with a ceramic fuel that melts at high temperatures. Both designs are intended to be safer than conventional reactors by using passive cooling systems that don't require operator intervention during emergencies. The companies must still obtain approval from the Nuclear Regulatory Commission, which has already issued a construction permit to Kairos for a demonstration reactor in Tennessee.
The deals could lower electricity costs for consumers if SMRs prove cheaper than natural gas plants that currently provide most of the nation's steady power supply. Amazon and Google have committed to paying fixed prices for nuclear electricity, potentially shielding customers from volatile natural gas prices that have driven up utility bills. The success of these reactors could determine whether the United States meets its climate goals while maintaining the power reliability needed for an increasingly digital economy.
Highlighted text was flagged by the council. Tap to see feedback.
