Amazon Partners With X-energy and AEP to Fund Nuclear Plant in Indiana
The tech giant signed a deal to build a nuclear facility in Indiana that would supply carbon-free energy to its data centers and the regional grid.
Key points
- Amazon, X-energy, and American Electric Power signed an agreement for a new nuclear facility in Indiana.
- The plant would generate up to 960 megawatts of carbon-free energy using twelve Xe-100 small modular reactors.
- The project aims to create 1,000 construction jobs and 100 permanent positions, though no timeline has been set.
Amazon has signed a funding agreement with X-energy and American Electric Power (AEP) to construct a new nuclear energy facility in Indiana. According to The Verge, this partnership aims to build a plant that will supply carbon-free electricity to both Amazon’s data centers and the regional power grid.
The proposed facility is located in Fairbanks, Sullivan County, and is intended to replace the now-defunct coal-fueled Breed Generating Station. The project targets the installation of twelve Xe-100 small modular reactors (SMRs). These advanced reactors are designed to provide up to 960 megawatts of power. Amazon states that the reactors can be cooled using air, water, or a hybrid solution, which allows for deployment in water-constrained regions without impacting local water demand.
Project Scope and Timeline
No specific timeline for construction or operation has been announced for the Indiana facility. Amazon indicates that the project "could" create 1,000 construction jobs and 100 permanent roles during its development and operation phases. The Xe-100 reactors are described as advanced but unproven technology that is currently undergoing development and licensing processes. Terms of the agreement, including cost details, have not been disclosed by the companies involved.
This initiative marks the second nuclear energy collaboration between Amazon and X-energy. The collective goal of these partnerships is to work with regional utilities to deploy more than 5 gigawatts of new nuclear capacity in the United States by 2039. Amazon previously shared an early preview of its first planned nuclear plant, the Cascade Advanced Energy Facility in Washington, in October of last year.
Industry Context and Precedents
The Washington project is similarly set to build twelve advanced reactors and create local jobs, but construction is not expected to begin until the end of this decade. Amazon is one of several major technology companies, including Meta, Microsoft, and Google, that are exploring nuclear energy projects to power their AI data centers. This trend reflects a broader industry shift toward securing stable, carbon-free energy sources for high-demand computing infrastructure.
Indiana has a history of complex nuclear energy projects. The state is home to the Marble Hill Nuclear Power Plant, which was abandoned half-finished in 1983 after $2.5 billion had been invested. Demolition of the Marble Hill site has continued since 2008. Because the financial terms for the new Amazon facility in Fairbanks have not been disclosed, direct cost comparisons with historical projects like Marble Hill cannot be made.
What should you do?
Security and technology professionals should monitor regulatory filings and licensing updates for the Xe-100 reactor technology to understand potential supply chain or infrastructure dependencies. Organizations relying on cloud services should track how data center energy sourcing impacts vendor sustainability reporting and potential operational continuity plans. Stakeholders should watch for announcements regarding the construction timeline to assess long-term energy market shifts.
What to do and how to stay safe: Amazon
- Monitor public regulatory filings for licensing progress on the Xe-100 small modular reactor technology.
- Review vendor sustainability reports to understand how nuclear energy adoption affects data center operational stability.
- Track announcements from Amazon and AEP regarding construction timelines and job creation metrics.
- Assess your organization’s exposure to regional power grid changes in Indiana and Washington states.
Step-by-step guide: Mobile Device Security: How to Protect Data Beyond Passwords
General security guidance from the Threat Times newsroom. It is not confirmed advice from the organisations named in this story.
Frequently asked questions
Where is the new Amazon nuclear plant being built?
The facility is proposed for Fairbanks, Sullivan County, Indiana, replacing the former Breed Generating Station.
How much power will the Indiana plant generate?
The plant aims to provide up to 960 megawatts of carbon-free energy to the grid and Amazon’s data centers.
What type of reactors will be used?
The project plans to build twelve Xe-100 small modular reactors, which are currently undergoing development and licensing.
