Amazon Backs 12 Small Nuclear Reactors in Indiana
Amazon is funding plans for a 960-megawatt nuclear power plant at a retired coal facility in Sullivan County, Indiana. Announced on October 19, 2026, the project involves Amazon, utility American Electric Power (AEP), and nuclear technology developer X-energy. The proposed facility would use 12 small modular reactors to supply electricity to the regional grid and Amazon’s data centres.
The companies have signed a joint development agreement to assess the project’s feasibility. However, they have not announced a construction start date or an expected operational launch. The plan remains subject to further development, investment decisions, and regulatory approvals.
Twelve Reactors Could Deliver 960 Megawatts
The proposed facility would use X-energy’s Xe-100 small modular reactor technology. Each reactor can generate 80 megawatts, giving the 12-unit plant a combined capacity of 960 megawatts. Moreover, the partners plan to arrange the reactors in three groups of four.
The companies are evaluating the former Breed Generating Station site in Sullivan County, south of Terre Haute. AEP’s Indiana Michigan Power utility previously operated the coal facility. Therefore, the project could repurpose a retired energy site for a new generation of power infrastructure.
Amazon intends to become the plant’s first power customer under a long-term purchase agreement. Meanwhile, AEP would operate the facility, and X-energy would supply its reactor technology. This arrangement connects Amazon’s demand for electricity with a utility’s operating expertise and a specialist nuclear developer.
Amazon Expands Nuclear Power Strategy for AI
Amazon’s investment reflects the growing electricity needs of AI infrastructure and cloud computing. As data centres expand, technology companies are seeking reliable, low-carbon power sources that can operate around the clock. Nuclear energy offers one potential solution because it can generate electricity regardless of weather conditions.
The Indiana proposal builds on Amazon’s existing partnership with X-energy. In October 2024, Amazon led a $700 million funding round for the nuclear technology company. Furthermore, the partners aim to develop more than five gigawatts of new nuclear capacity across the United States by 2039.
X-energy’s Xe-100 uses helium cooling and advanced TRISO fuel. According to the company, this design supports high-temperature operation and offers a different approach from conventional light-water reactors. Nevertheless, the technology still faces deployment challenges, including licensing, construction, and commercial readiness.
The Indiana project also comes with significant uncertainties. X-energy has yet to begin construction on its first planned Xe-100 plant at a Dow chemical facility in Texas. Consequently, the timeline for delivering the Indiana reactors will depend partly on progress at earlier projects.
Potential Economic Benefits and Project Challenges
If the project advances, it could create construction jobs, add permanent roles, and expand Sullivan County’s tax base. Amazon estimates the development could generate more than 1,000 construction jobs and over 100 permanent positions. However, these benefits depend on the project reaching construction and commercial operation.
The partners say Amazon’s funding and long-term purchase commitment will help manage financial risks. In particular, the agreement aims to protect existing utility customers from having to bear the project’s development and operating costs. However, the companies have not disclosed the full financial terms.
The proposal adds to a wider shift in the technology sector. Microsoft, Google, and Meta have also pursued nuclear energy agreements to support growing computing demand. Ultimately, Amazon’s Indiana project illustrates how AI expansion is influencing long-term energy planning, although its commercial impact will depend on successful development and delivery.
