Amazon Web Services (AWS), the cloud computing subsidiary of Amazon, is set to invest over $500 million in the nuclear power sector with three projects spanning from Virginia to Washington state. As AWS expands its services into the realm of generative artificial intelligence (AI), the demand for clean energy is becoming increasingly critical.

AWS has signed an agreement with Dominion Energy, a utility company in Virginia, to explore the development of small modular reactors (SMRs) near the existing North Anna Nuclear Power Station.

SMRs represent a cutting-edge type of nuclear reactor that occupies a smaller footprint and can be built closer to the electrical grid. They also have faster construction timelines compared to traditional reactors, enabling quicker operational readiness.

Amazon joins a growing number of major tech companies investing in nuclear power to meet the rising energy demands of data centers. Just this week, Google announced plans to purchase electricity from SMR developer Kairos Power. Additionally, Constellation Energy is restarting the Three Mile Island unit to supply power to Microsoft’s data centers.

Matthew Garman, CEO of AWS, commented, “In the coming years, we’re expecting a demand for gigawatts of electricity, yet there aren’t enough wind and solar projects to meet that demand, making nuclear power a great opportunity. Furthermore, this technology is evolving toward having SMRs, which will offer a safe and more compact solution.”

Virginia is home to nearly half of the data centers in the U.S., with a region in Northern Virginia known as “Data Center Alley,” primarily situated in Loudoun County. It is estimated that 70% of the global internet traffic passes through this area every day.

Within its service area in Virginia, Dominion provides approximately 3,500 megawatts of power to 452 data centers, with around 70% located in Data Center Alley. Dominion Energy states that an individual data center typically requires over 30 megawatts of power. Bob Blue, the company’s president and CEO, noted in a recent earnings call that they are now receiving requests for individual capacities ranging from 60 to 90 megawatts or even higher, with an anticipated 85% growth in electricity demand over the next 15 years. AWS expects that the new SMRs will deliver at least 300 megawatts of power to the Virginia region.