Extending its step towards a low-carbon future, Amazon invested in X-Energy, a nuclear energy startup, to expand its data centers and AI operations. Reportedly, Amazon invested around $700 million in the Series C-1 Funding round and around $500 million in another round. This article will explain the nuclear energy project and how it will help companies like Amazon and others.
MoU Signed By Amazon Inc. & X-Energy
Amazon is committing to a $500 million investment in the X-Energy startup. Amazon aims to harness the nuclear energy of small modular reactors, which produce a fraction of the normal nuclear reactor. It will help operate the data centers that need a considerable power supply. This will help X-energy expand its services and experiment with new innovations that may foster a sustainable and energy-efficient future.
Mission Of The Investment
Amazon and X-Energy came together to develop small modular nuclear reactor technology. Both companies aim to create 5 GW projects by 2039. Amazon’s funding is part of its ongoing strategy to meet sustainability goals while dealing with the increasing energy demands driven by the rapid growth of AI technologies, machine learning, and cloud computing. Amazon Web Services (AWS), which is Amazon’s cloud division, plays a crucial role in the global online infrastructure. As the business continues to expand, AWS is actively pursuing clean and reliable energy solutions.
Further, it helps Amazon in reducing its carbon footprint as it is a carbon-free energy project. By contributing with a huge amount of funding, Amazon has secured two seats at the board of directors chamber. This will give an advantage in decision-making.
Small Modular Reactors To Operate Data Centres
Amazon is looking forward to utilizing small modular reactors (SMRs). These SMRs are more efficient, safer, and quicker to install compared to traditional large nuclear reactors. X-energy’s Xe-100 reactors use helium gas for cooling instead of water, which enhances heat diversion from the reactor core. Each Xe-100 unit generates 80 megawatts of electricity (MWe). When grouped in sets of four, they can produce a total of 320 MWe, a capacity comparable to that of traditional gas-fired power plants.
About X-Energy
X-Energy was established in 2009 by billionaire serial entrepreneur Kam Ghaffarian. It was established with the environment pledge fund. It designs small nuclear reactors and Generation-IV fuel (clean energy). Department of Energy, USA, also invested in the company through various government programs after seeing its potential in the clean energy domain. X-Energy is privately held and hasn’t made itself public for trading.
Amazon’s Agreement With Other Companies
Amazon is actively pursuing its goal of achieving a low-carbon footprint by exploring the vast potential of AI infrastructure. Other than this, the online service giant has the huge responsibility of operating its data centers 24*7. To support the environmental cause while keeping pace with development, Amazon has signed an agreement with the Energy Northwest Consortium to establish four small modular reactors (SMRs) that will generate approximately 320 megawatts (MW) of electricity. Additionally, in Virginia, Amazon and Dominion Energy have agreed to explore the development of SMRs capable of producing 300 MW near the North Anna Nuclear Generating Station, located between Washington, D.C., and Richmond, Virginia.
Final Words
Amazon’s investment in X-Energy highlights its commitment to clean energy and sustainable growth. By using small modular reactors, Amazon aims to power its data centers efficiently while reducing its carbon footprint. This partnership aligns with the company’s long-term goal of meeting increasing energy demands with reliable and eco-friendly solutions. With advancements in nuclear technology, Amazon is setting a precedent for other tech giants to explore alternative energy sources. This move not only benefits Amazon but also contributes to a greener future.
