Key points
- Amazon, X-energy, and American Electric Power signed an agreement to fund a new nuclear plant in Indiana.
- The facility will feature 12 Xe-100 small modular reactors providing up to 960 megawatts of carbon-free energy.
- The plant is planned for the site of the defunct Breed Generating Station in Sullivan County.
The short version
- Amazon has committed to funding a nuclear energy project in Indiana alongside X-energy and utility provider AEP.
- The proposed plant will replace a closed coal facility and supply power to both the regional grid and Amazon’s data centers.
- The project involves 12 advanced small modular reactors, marking the second commercial deal between Amazon and X-energy.
The details
According to The Verge, Amazon signed an agreement with X-energy and American Electric Power to fund a new nuclear facility in Indiana. The plant is scheduled to replace the defunct Breed Generating Station in Fairbanks, Sullivan County. It aims to provide up to 960 megawatts of carbon-free energy for the regional power grid and Amazon’s data centers. No construction or operation timeline has been announced for the facility.
Amazon stated the project could create 1,000 construction jobs and 100 permanent roles. The facility plans to build 12 Xe-100 small modular reactors, an advanced design still undergoing development and licensing. These reactors can use air, water, or hybrid cooling, which Amazon says allows deployment in water-constrained regions without impacting local water demand.
TechCrunch reported that Amazon will be the first customer to buy power from the plant, while AEP will operate it. X-energy, which went public in April, will supply the reactors. The site is located just south of Terre Haute on the grounds of a demolished coal plant. This deal is three times larger than the first commercial agreement between Amazon and X-energy, announced two years ago. Amazon led a $700 million Series C-1 funding round for X-energy in October 2024. The companies plan to build 5 gigawatts of new nuclear capacity in the US by 2039.
The context
This marks the second nuclear energy project Amazon and X-energy are collaborating on. In October last year, Amazon previewed its first planned nuclear plant, the Cascade Advanced Energy Facility in Washington. That project also involves 12 advanced reactors and local job creation, but construction is not expected to start until the end of this decade. Indiana is also home to the abandoned Marble Hill Nuclear Power Plant, which was left unfinished in 1983 after $2.5 billion was spent. Amazon is among several tech companies, including Meta, Microsoft, and Google, exploring nuclear projects to power AI data centers.
What to watch
The aggressive timeline for these projects depends on X-energy successfully delivering its first power plant at a Dow Chemical plant in Seadrift, Texas. That site hosts four Xe-100 reactors and is currently the subject of a lawsuit by the state of Texas. The state accuses the plant of habitual non-compliance with water and solid-waste regulations. X-energy has not yet broken ground at Seadrift, and its construction permit is in the final phases of review by the US Nuclear Regulatory Commission. X-energy shares have dropped by nearly two-thirds since its April IPO, reflecting investor caution despite initial excitement.
What it means for organisations
Organisations relying on large-scale data infrastructure should monitor how emerging energy suppliers manage regulatory compliance and construction timelines. Teams usually assess whether long-term power contracts expose them to delays if the provider is still proving its technology. Procurement and risk leaders need to evaluate if unproven reactor designs introduce supply chain vulnerabilities. Stakeholders should determine if their sustainability goals depend on specific carbon-free sources that may face legal or permitting hurdles. Internal communications should clarify how potential delays in energy projects could impact operational capacity or cost structures.
Background: Supply chain attacks
A supply chain attack targets the software or hardware you use before it reaches you. By compromising a trusted vendor, attackers insert malicious code that installs automatically on your systems when you update or deploy the product. This bypasses perimeter defenses because the malicious payload arrives with a valid digital signature.
Read the full guide: Supply Chain Attacks: How Trust Becomes Your Biggest Security Risk
What to do and how to stay safe: Amazon
- Review current energy procurement contracts to understand exposure to supplier delays or regulatory changes.
- Monitor public filings and news regarding the regulatory status of new nuclear projects in your region.
- Assess whether your sustainability commitments rely on specific unproven technologies that may face setbacks.
- Engage with legal and compliance teams to evaluate risks associated with long-term power purchase agreements.
Step-by-step guide: Secure Home Routers for Small Business Networks
General security guidance from the TechSec Headlines newsroom. It is not confirmed advice from the organisations named in this story.
Frequently asked questions
Where will the new nuclear plant be located in Indiana?
The plant will be built at the site of the defunct Breed Generating Station in Fairbanks, Sullivan County, just south of Terre Haute.
How much power will the Indiana plant generate?
The proposed facility aims to provide up to 960 megawatts of carbon-free energy to the grid and Amazon’s data centers.
Is this the first nuclear project for Amazon and X-energy?
No, this is the second commercial agreement between the two companies, following a smaller deal announced two years ago for a plant in Washington.
