This follows Google’s earlier announcement (14th October) that it had also signed a deal to use small nuclear reactors to generate the vast amounts of energy needed to power its artificial intelligence (AI) data centres. In addition, last month, Microsoft also signed a 20 year power purchase contract with US nuclear utility, Constellation Energy, requiring the re-start of the Three Mile Island nuclear plant in Pennsylvania, to provide Microsoft with secure low carbon energy.
Why is this happening now?
Technology firms are increasingly turning to nuclear sources of energy to supply the electricity used by the huge hyperscale data centres that drive AI. This is because AI data centres need large amounts of electricity to both power them and keep equipment cool, and access to power has become a critical factor in driving new data centre builds. Importantly, nuclear power, which can provide firm baseload low carbon power 24 hours a day, has become increasingly attractive to the tech industry as it attempts to cut emissions even as it uses more energy, with global energy consumption by data centres being expected to more than double by the end of the decade, by some commentators.
What is Amazon buying?
Amazon's Climate Change Pledge Fund was described as the anchor investor in a USD500 million financing round for X-energy, with the funding designed to pave the way to completion of the advanced high temperature gas reactor design and licensing, for an initial four AMR reactors generating about 320 MWe, with an option to treble that number to 960 MWe, which would be the amount needed to power about 770,000 homes. Amazon is also investing directly into X-Energy, which is the first time a tech company has made a third-party investment directly into a reactor developer.
Why is this significant for the UK?
The UK Government has made the development of advanced modular high temperature gas reactors a strategic priority for its advanced nuclear programme, taking advantage of UK experience operating the current Advanced Gas Cooled fleet which EDF owns across the UK. Earlier this year X-Energy received grant funding under the UK Government’s Future Nuclear Enabling Fund and has ambitious plans for UK fleet deployment, from the early 2030s.
Why is this a key moment for the AMR market?
The AMR sector, offers much reduced costs of capital and significantly shorter modular assembly construction schedules, and is now looks set to take off, with increasing government and private company investment, all supporting the accelerating delivery of secure low carbon energy, energy security and decarbonisation of the digital economy, as well as enabling increasing electrification to decarbonise manufacturing and transportation sectors. As this market matures, we can help you navigate the key legal, planning and consenting steps to enable AMR development.
To learn more, please download our 2024 Energy Atlas – in this report, we consider the opportunities and challenges facing organisations engaged in or wishing to enter the renewables market, including an outlook on nuclear generation and growth markets.
