Amazon has committed to funding a 960-megawatt nuclear power plant in Indiana. The project will be operated by American Electric Power, with X-energy providing 12 small modular reactors of the Xe-100 type. The facility will be built on the site of a decommissioned coal plant near Terre Haute.
This initiative marks the second commercial agreement between Amazon and X-energy, tripling the scale of their previous deal from two years ago. Amazon previously invested $500 million in X-energy in 2024 to develop power sources for its data centers. The companies aim to reach a total capacity of 5 gigawatts by 2039.
The project's success hinges on X-energy's ability to launch its first facility at a Dow Chemical site in Texas. This site, known as Seadrift, is currently facing legal challenges from Texas authorities regarding water and waste regulations. Construction at Seadrift has not yet commenced, though permit reviews are nearing completion.
X-energy went public on the Nasdaq in April with an initial share price of $23. Following the announcement of the new Amazon deal, the company's stock rose by approximately 10 percent in pre-market trading before settling. The industry is looking to small modular reactors as a way to reduce costs and timelines compared to traditional large-scale nuclear projects.
