Amazon, X-energy and AEP Explore 960 MW Nuclear Project for AI Data Centres in Indiana

Amazon, X-energy and American Electric Power (AEP) have signed an agreement to explore developing a 960-megawatt small modular reactor (SMR) facility in Indiana, targeting new carbon-free electricity generation for the regional grid and Amazon's expanding data centre operations. Announced on 19 October 2026, the proposed project would deploy 12 of X-energy's Xe-100 advanced nuclear reactors at the former Breed Generating Station site in Sullivan County, Indiana.

Amazon will provide project development funding and intends to become the facility's first electricity customer once operational. The proposed development forms part of Amazon and X-energy's broader collaboration to deploy more than 5 GW of nuclear power capacity across the United States by 2039. The agreement comes as electricity demand rises due to artificial intelligence, cloud computing, manufacturing and wider electrification.

 

Building 960 MW of Nuclear Capacity at a Former Coal Site

 

The Indiana project would involve 12 Xe-100 small modular reactors, each designed to generate 80 MW of electricity. The facility is proposed for the site of the former coal-fired Breed Generating Station, potentially allowing an established power generation location to be redeveloped for carbon-free electricity production. Once operational, the plant would supply power to the regional electricity system while supporting Amazon's growing data centre requirements.

According to Amazon, the project could create more than 1,000 construction jobs and over 100 permanent positions. AEP and its Indiana Michigan Power utility bring experience from more than five decades of nuclear power operations. However, the agreement remains at the exploratory stage, with the companies yet to announce a construction schedule, commissioning date, total project cost or final investment decision.

 

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Amazon Expands Its Advanced Nuclear Energy Strategy

 

The Indiana proposal is the second development under Amazon's nuclear collaboration with X-energy, following the Cascade Advanced Energy Facility in Washington state. The partnership aims to support the deployment of more than 5 GW of new nuclear generation capacity in the United States by 2039. Amazon's role as an initial electricity purchaser is intended to provide commercial demand that could help developers secure financing for advanced nuclear projects.

Amazon began supporting X-energy through its $2 billion Climate Pledge Fund and led the company's Series C-1 financing round in 2024, which ultimately closed at $700 million. That investment was intended to advance reactor design, licensing and the development of X-energy's TRISO-X nuclear fuel fabrication facility in Oak Ridge, Tennessee. The Indiana project extends this strategy as Amazon seeks reliable electricity sources capable of meeting continuous data centre demand alongside its existing renewable energy investments.

 

Xe-100 Technology Designed for Continuous Carbon-Free Electricity

 

X-energy's Xe-100 is a high-temperature gas-cooled reactor that uses helium as a coolant and TRISO nuclear fuel. TRISO fuel contains uranium particles surrounded by protective ceramic layers designed to withstand extreme temperatures. According to X-energy and Amazon, the reactor incorporates passive safety characteristics intended to reduce dependence on active cooling systems and operator intervention during abnormal operating conditions.

The reactor design also supports different cooling configurations, including air-cooled, water-cooled and hybrid systems, allowing project developers to consider local water availability and operating conditions. Nuclear generation produces electricity without direct carbon dioxide emissions during operation and can provide continuous power, complementing variable renewable sources such as wind and solar. However, commercial deployment of the Xe-100 technology will depend on regulatory approvals, construction performance, fuel availability and successful demonstration of the reactor design at operating scale.

 

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Data Centre Electricity Demand and Ratepayer Protection

 

The proposed development reflects growing pressure on electricity infrastructure as technology companies expand AI computing capacity. Amazon says its global carbon-free energy portfolio now includes more than 700 projects representing over 40 GW of capacity. Advanced nuclear energy is becoming another component of its electricity procurement strategy, particularly for facilities requiring continuous power. New generation capacity could help accommodate additional demand, although the benefits for regional electricity prices and grid reliability will depend on the project's financing and operating arrangements.

Amazon has also emphasised its commitment to preventing data centre expansion from increasing electricity costs for local consumers. The company says it has signed the White House Ratepayer Protection Pledge, committing to cover the electricity and associated infrastructure costs of its data centres. It also reports that its previous carbon-free energy investments contributed approximately $160 million to Indiana's GDP between 2023 and 2025 and generated more than $11 million in tax revenue. These figures relate to earlier investments, not projected economic benefits from the proposed nuclear facility.

The Indiana agreement represents an early step towards expanding advanced nuclear power capacity to meet growing electricity demand. While the proposed 960 MW facility could support additional carbon-free generation and redevelopment of a former coal site, its delivery remains contingent on further project development, regulatory approvals and investment decisions. The partnership illustrates how large technology companies are increasingly seeking long-term electricity supply arrangements to support AI infrastructure while pursuing their climate commitments.

 

Source: Amazon News