Article source: ESG Dive
Amazon signs 960-MW Indiana nuclear pact with AEP, X-energy
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Amazon has committed to a 960-megawatt nuclear power purchase agreement with American Electric Power (AEP) and X-energy in Indiana. The deal structures Amazon as the buyer of power output under a long-term contract that covers both capital and operational costs for the facility.
This move signals a specific corporate response to the energy intensity of data centre expansion and AI infrastructure – two areas where Amazon faces mounting scope 2 emissions if powered by grid electricity. The deal sits within a broader trend of hyperscalers negotiating direct nuclear contracts as an alternative to renewable energy procurement, which faces intermittency and land-use constraints at scale.
But the language matters. Amazon has "signed" an agreement – not built a facility. X-energy is an early-stage small modular reactor (SMR) developer. The timeline to operational power remains opaque, as does the specific cost structure and any performance guarantees. The contract's coverage of "cost of the facility and its operations" suggests Amazon is assuming material capital risk, which is unusual for a corporate power buyer and warrants scrutiny of the financial terms.
SMRs remain unproven at commercial scale in the US. Delays and cost overruns are common in nuclear projects. What happens to Amazon's climate commitments if this facility doesn't materialise on schedule – or at all?