Amazon bets on nuclear to power AI future as Australia dithers

The technology giant’s nuclear play, detailed for the Cascade Advanced Energy Facility in Washington state, highlights the increasing energy demands of the AI era and signals a new chapter in corporate energy independence.

In collaboration with Energy Northwest and small modular reactor developer X-energy, Amazon aims to build up to 12 SMRs near Energy Northwest’s Columbia Generating Station.

The initial phase of Cascade will feature four Xe-100 SMRs from X-energy, providing an initial capacity of 320 megawatts and the potential to expand to 12 units, totalling 960MW. Construction is expected to begin by the end of this decade, with operations targeted for the 2030s.

Meanwhile, in Australia, industry leaders are urging the nation to consider nuclear power as a viable option for its energy grid to compete in the artificial intelligence race. The Australian’s Energy Nation Forum in September heard warnings that Australia is struggling with the immense energy demands of the burgeoning AI economy and its ambitious renewable energy targets.

Amazon’s investment reflects a growing recognition within the tech industry that the insatiable energy appetite of AI and cloud services requires a reliable, carbon-free power source beyond traditional renewables. While Amazon has been a leading corporate purchaser of renewable energy, with over 600 projects worldwide, the company is now embracing nuclear power as a scalable, consistent, and safe solution to meet its ambitious sustainability goals.

Kara Hurst, Amazon’s chief sustainability officer, emphasised the project’s dual impact. “This project isn’t just about new technology; it’s about creating a reliable source of carbon-free energy that will support our growing digital world,” Ms Hurst said. “I’m excited about the potential of SMRs and the positive impact they will have on both the environment and local communities.”

SMRs represent a significant technological advancement, being smaller, simpler to construct, faster to deploy, and more cost-effective than conventional nuclear plants. The Cascade facility, for instance, will comprise three 320MW sections, occupying only a few city blocks, a stark contrast to traditional gigawatt-scale nuclear plants. This modularity offers greater flexibility and scalability.

The project is part of Amazon’s commitment to bring more than 5 gigawatts of new nuclear energy to the US grid by 2039, enough to power 3.8 million homes.

The Cascade facility is also expected to generate over 1000 construction jobs and more than 100 permanent positions in nuclear operations and engineering. To support this workforce, Columbia Basin College in Pasco, Washington, has secured funding for the Energy Learning Centre, which will feature an education simulator replicating X-energy’s Xe-100 control room.

The tech giant’s embrace of nuclear energy, particularly advanced SMR technology, marks a significant shift in how corporations approach their energy future, underscoring the critical role of reliable, carbon-free power in sustaining AI and cloud services growth.

The path to embracing nuclear energy in Australia remains complex due to political sensitivities and public concerns over waste and potential disasters.

But prominent figures in the tech sector, including Katherine McConnell, chief executive and founder of Brighte, are advocating for a comprehensive approach that includes nuclear energy. Ms McConnell told The Australian’s Energy Nation Forum that while rooftop solar and home batteries could help stabilise the grid and power data centres, renewables alone are only part of the solution.

She hoped for a more level-headed debate about nuclear power now that the federal election is over.

Craig Scroggie, CEO of ASX-listed data centre operator NextDC, also advocated for considering all options to power Australia’s technological ascent. He stated that the energy required for AI ambitions is projected to be “10 to 100 to 1000 times greater than everything we’ve seen.”

Research from Bain & Co indicates that data centres will consume 200 gigawatts of power by 2030 due to surging AI demand, with the US alone needing an additional 100 gigawatts. Bain warns that if power cannot scale, AI growth will slow, and if it scales on fossil fuels, climate targets are at risk. This forecast compels a re-evaluation of Australia’s energy strategy, especially as the nation aims for an 82 per cent renewable energy target by the end of the decade.

Mr Scroggie, a proponent of evidence-based discussion, pointed to global trends where major technology giants like Microsoft, Amazon, and Google are already investing heavily in advanced nuclear technologies overseas, including SMRs. He emphasised that resolving the “energy trilemma” – the simultaneous pursuit of clean, firm, and cheap power – is paramount for Australia’s future prosperity and its capacity to lead in the forthcoming industrial revolution.

This article first appeared in The Australian as Amazon bets on nuclear to power AI future as Australia dithers