Amazon Powers Up: Nuclear Investments Spark Stock Surge

Recent developments have seen a marked increase in the stock values of nuclear energy companies, driven by Amazon's strategic investments in small modular reactors (SMRs). Amazon Web Services (AWS) has announced significant partnerships and funding commitments aimed at advancing nuclear energy projects.

Amazon has partnered with Dominion Energy to explore SMR developments near the North Anna nuclear power station in Virginia. This project is expected to provide at least 300 megawatts of power to meet the region's growing energy demands, particularly in the northern part of the state, home to a significant concentration of data centers.

In addition to its collaboration with Dominion Energy, Amazon is also investing in X-energy's SMR designs, which will be utilized in projects by Energy Northwest in Washington. This initiative aims to construct four advanced SMRs, initially generating 320 megawatts, with potential expansion to 960 megawatts.

AWS's CEO, Matt Garman, highlighted that nuclear energy presents a secure, scalable, and carbon-free solution, essential for meeting the company's ambitious Climate Pledge of achieving net-zero carbon emissions by 2040. This shift reflects Amazon's strategy to transition towards sustainable energy sources that can cater to the expanding needs of its data centers.

This move marks Amazon's entry into the nuclear sector, aligning it with other tech giants like Google, which recently secured a power agreement with SMR developer Kairos Power. The increasing energy demands from data centers driven by AI advancements are prompting these major tech companies to explore reliable and scalable nuclear options.