12 Xe-100 SMRs: Amazon, X-energy, AEP pledge 960MW carbon-free power at Indiana coal site
Amazon, X-energy and AEP signed a deal to build 12 small modular reactors at a former coal site in Indiana to supply grid and cloud power.
Key points
- The project aims to generate 960 megawatts of carbon-free energy using 12 Xe-100 small modular reactors.
- X-energy will supply the reactors while American Electric Power operates the facility at the Breed Generating Station site.
- No construction timeline has been announced, and the technology remains in the licensing and development phase.
Amazon has signed an agreement to fund a new nuclear energy facility in Indiana that will supply power to the regional grid and its data centers, according to reports from The Verge and TechCrunch. The project involves building 12 small modular reactors on the site of the defunct Breed Generating Station in Sullivan County. This marks the second commercial deal between Amazon and reactor designer X-energy, following an earlier announcement for a plant in Washington state.
The risk
The primary uncertainty lies in the unproven nature of the technology and the regulatory path ahead. The proposed plant relies on X-energy’s Xe-100 small modular reactors, which are still undergoing development and licensing processes. TechCrunch notes that the aggressive timeline for this Indiana project depends heavily on X-energy successfully delivering its first power plant at a Dow Chemical facility in Texas. That initial site has faced legal challenges regarding compliance with environmental regulations.
Who is exposed
Amazon is the first customer committed to purchasing power from the new Indiana facility. The plant is designed to provide up to 960 megawatts of electricity, serving both Amazon’s infrastructure and the broader regional power grid. American Electric Power will operate the plant, integrating the output into local energy distribution. This arrangement exposes Amazon to the operational and regulatory risks associated with deploying advanced nuclear technology at scale.
Cost and compliance
Financial terms for the Indiana agreement have not been disclosed, making direct cost comparisons with other projects difficult. However, TechCrunch highlights that this deal is three times larger than the first Amazon-X-energy agreement announced two years ago. The project faces compliance hurdles, including the ongoing U.S. Nuclear Regulatory Commission review for the company’s Texas site. X-energy’s public market performance has also been volatile, with shares dropping significantly since its April debut.
What should you do?
Managers should monitor regulatory updates regarding small modular reactor licensing to assess future energy supply stability. Teams should review their data center power contracts to understand exposure to new energy sources and potential timeline delays. Organizations relying on carbon-free energy commitments should track the operational status of these advanced nuclear projects to ensure alignment with sustainability goals.
The background in plain language
Small modular reactors are smaller nuclear units designed for easier deployment and lower upfront costs. Teams usually evaluate these options for their potential to provide steady, carbon-free power without the massive scale of traditional plants. Check whether the technology has completed licensing and initial operational tests before committing resources. Assess how regulatory delays or construction issues at early sites might impact broader deployment schedules and energy availability.
What to do and how to stay safe: Amazon
- Monitor regulatory announcements regarding the licensing status of small modular reactors.
- Review data center energy procurement strategies to account for potential delays in new nuclear projects.
- Track operational updates from first-of-a-kind nuclear deployments to gauge technology readiness.
- Evaluate the financial stability and market performance of reactor suppliers before long-term commitments.
Step-by-step guide: Browser security settings are the architectural walls of your digital life
General security guidance from the Vector Tribune newsroom. It is not confirmed advice from the organisations named in this story.
Frequently asked questions
Where is the new nuclear plant being built?
The plant is being built at the site of the former Breed Generating Station in Fairbanks, Sullivan County, Indiana.
How much power will the plant generate?
The facility aims to provide up to 960 megawatts of carbon-free energy to the grid and Amazon’s data centers.
When will the plant start operating?
No timeline for construction or operation has been announced for the Indiana facility.
