Amazon Doubles Nuclear Bet with New Indiana Data Center Plant 2026

Amazon has agreed to help fund the development of a 960-megawatt nuclear power plant in Indiana, marking its second major nuclear project as it seeks to power its energy-hungry data centers. The project, announced Monday with X-energy and American Electric Power (AEP), would install 12 small modular reactors (SMRs) on the site of a former coal plant. However, no timeline has been given for when the plant might actually produce electricity.

Why Amazon Is Betting Big on Nuclear for Data Centers

The appetite of big tech companies to power their data centers is relentless, and it's pushing the electric grid to unsustainable limits. These colossal facilities, which house the infrastructure needed to run AI, require massive amounts of electricity around the clock. Nuclear energy is one of the few carbon-free sources that can provide that constant power.

Amazon says it aims to bring more than 5 gigawatts of new nuclear capacity online in the US by 2039 with X-energy, and Indiana is the second project in that plan. The first is the Cascade Advanced Energy Facility in Washington state. TechCrunch notes that the Indiana deal is three times larger than the first agreement between the two companies.

Inside the Indiana Nuclear Project: 12 Reactors and a Coal Site

The plant would use 12 Xe-100 reactors from X-energy, each with a rated capacity of 80 megawatts. It would be located where an old coal-fired power plant once stood — a symbolic shift from fossil fuels to advanced nuclear. The site reuse could streamline permitting and take advantage of existing grid connections.

Amazon would be the first customer to buy electricity from the plant, according to the announcement. The agreement also involves AEP, which would likely operate the plant and handle grid integration. The project still faces regulatory approvals and construction challenges typical of first-of-a-kind nuclear builds.

Small Modular Reactors: A Solution for AI's Energy Hunger?

Small modular reactors are designed to be factory-built and assembled on-site, potentially reducing construction costs and timelines compared to traditional large reactors. Each Xe-100 unit is smaller and simpler, but the Indiana project would deploy 12 of them to achieve utility-scale output.

For Amazon, the appeal is clear: SMRs can be located closer to data centers, reducing transmission losses and improving reliability. They also produce carbon-free power, aligning with the company's climate goals while meeting the voracious demand of AI workloads.

The Challenges Ahead: Timelines, Costs, and Regulation

Despite the enthusiasm, significant hurdles remain. No one has said when the Indiana plant could start generating electricity — a critical detail given the urgent need for power. Nuclear projects in the US have historically suffered from delays and cost overruns.

X-energy's Xe-100 design is still undergoing licensing review by the Nuclear Regulatory Commission. The first Cascade project in Washington is also in early stages, so the Indiana announcement is more of a long-term bet than an immediate fix for data center power needs. The background to this story is set out in Small Modular Reactors Still Haven't Delivered on Their Nuclear Promise. A related thread runs through Billionaire Invests 35bn in UK Small Modular Nuclear Reactors. Earlier coverage in Romania Nuclear Reactor Shutdown: Danube Drought Energy Crisis shows how the argument developed.

What This Means for the Grid and Other Tech Giants

The deal underscores a broader trend: tech companies are increasingly becoming energy players, signing long-term contracts to secure power. Microsoft, Google, and others have also announced nuclear and renewable deals to fuel their data centers. A closer look at the same subject appears in Green Party Drops Nuclear Power Opposition in Energy Policy Shift. Anyone following the wider picture can start with US Energy Secretary: Iran Nuclear Deal May Not Happen. The same theme surfaces in US-Saudi Nuclear Deal: What It Means for Energy and Security, which takes a different angle.

For utilities like AEP, partnering with a deep-pocketed customer like Amazon can help finance new generation without shifting all risks to ratepayers. However, regulators will scrutinize the arrangement to ensure costs are fairly allocated. Context on how this played out before sits in One Nation Nuclear Plan: East Coast Reactors and Coal Funding. A companion piece, Trump's $15bn Iowa Steel Plant: A Bold Bet on American Jobs, approaches the same subject from another angle.

Key Takeaways

• Amazon will fund a 960 MW nuclear plant in Indiana using 12 X-energy SMRs, its second such project.
• The plant would be built on a former coal site and Amazon would be the first customer.
• Amazon aims for 5 GW of new nuclear capacity by 2039 with X-energy.
• No timeline for electricity production has been announced; regulatory and construction hurdles remain.
• The project highlights how AI's power demand is driving tech companies into the energy sector.

Comparison of Amazon's Nuclear Projects