Amazon Web Services (AWS) is investing more than $500 million in nuclear power. AWS, Amazon’s cloud computing subsidiary, has a huge need for clean energy due to the increasing use of artificial intelligence technologies. This is reported by CNBC.

AWS has announced that it has signed an agreement with Dominion Energy, based in Virginia, to develop a small modular nuclear reactor (SMR) near the Dominion North Anna nuclear power plant.

A small modular reactor is an advanced type of nuclear reactor with smaller dimensions that allow it to be built closer to the power grid. They are also faster to build than traditional reactors, allowing them to be commissioned more quickly.

Google has also announced that it will buy electricity from Kairos Power, a developer of SMR plants. And Constellation Energy is restarting the Three Mile Island nuclear power plant to power Microsoft’s data centers.

“We see the need for gigawatts of power in the coming years, and there’s not going to be enough wind and solar projects to be able to meet the needs, and so nuclear is a great opportunity,” said Matthew Garman, CEO of AWS.

Virginia is home to almost half of all data centers in the United States, and one area in northern Virginia has been dubbed “Data Center Alley,” most of which is located in Loudoun County. According to various estimates, 70% of the world’s Internet traffic passes through Data Center Alley every day.

According to Dominion Energy, a single data center requires about 30 MW. The company also receives individual requests for power from 60 MW to 90 MW or more. Dominion predicts that electricity demand will grow by 85% over the next 15 years. AWS expects the new MMRs to bring in at least 300 MW.

AWS plans to invest $35 billion by 2040 to build multiple data center campuses across Virginia.

Amazon also announced a new agreement with Energy Northwest, a consortium of public utilities, to finance the development, licensing and construction of four SMRs in Washington State. The reactors will be built, owned and operated by Energy Northwest.

Under the agreement, Amazon will have the right to purchase electricity from the first four modules. Energy Northwest has the option to build up to eight additional modules. This electricity will also be available to Amazon and utilities.

In the spring of 2023, AWS invested in a nuclear power project with Talen Energy, signing an agreement to purchase nuclear power from the Susquehanna Steam Plant and the Salem Nuclear Power Plant in Salem, Pennsylvania. AWS also acquired a nearby data center campus from Talen for $650 million.