Amazon Plans Small Modular Nuclear Reactors to Power Data Centers
Last month, Amazon announced an agreement to develop four small-scale modular nuclear reactors (SMRs) along the Columbia River in Southeastern Washington. They plan to use the electricity generated to power its data centers in Eastern Oregon. The e-commerce giant touted nuclear energy as a “safe source of carbon-free energy,” which would allow it to meet its goal of net-zero carbon emissions by 2040.
Energy Northwest, a consortium of publicly owned utilities, is partnering with Amazon on this project. The agreement could lead to the construction of eight additional SMRs, producing enough electricity to power over 770,000 homes in the region.
OPB’s rural communities reporter, Antonio Sierra, recently investigated this technology, exploring its safety and how it differs from traditional nuclear reactors. He spoke with “Think Out Loud” host Dave Miller to share his findings.
“Amazon didn’t provide me with a specific number [for how much more electricity they will need]. And if they have one in mind, they’re not communicating that publicly,” Sierra explained. “However, we do know that globally, that data center energy consumption is going up.” The International Energy Agency projects that energy consumption will double from 2022 to 2026.
One of the biggest drivers of this increased energy demand is artificial intelligence (AI), specifically generative AI. Generative AI requires a massive amount of data to function, making substantial demands on energy resources.
The Appeal of Nuclear Power for Amazon
Amazon aims to expand its web and data services while achieving net-zero carbon emissions by 2040. To accomplish this, the company needs a reliable, carbon-free power source. Nuclear power generates more electricity than wind and solar, which Amazon has already invested in.
“Nuclear reactors offer the best of both worlds in their view,” said Sierra.
Understanding Small Modular Reactors (SMRs)
SMRs differ significantly from traditional nuclear reactors. SMRs are designed to be about one-tenth the size of conventional reactors. While each SMR generates less energy individually, the idea is that a collection of them can produce a comparable amount of power to a large nuclear power plant.
“A large nuclear reactor produces about 1 gigawatt of energy at peak capacity,” Sierra explained. An SMR, on the other hand, produces between 50 and 300 megawatts.
These figures are significantly higher than other renewable sources. A single wind turbine produces less than 3 megawatts, and a solar farm requires about 10 acres of solar panels to produce 1 megawatt. The Bonneville Dam, by comparison, produces about 1,000 megawatts.
While hydropower generates a lot of electricity, Energy Northwest reports that its capacity is reaching its limits. Amazon appears to be attracted to nuclear power because of its potential to produce a large amount of electricity. Furthermore, nuclear power is more reliable than wind and solar, producing power closer to maximum capacity more consistently.
Safety and Current Use
Safety tests for SMRs are ongoing because the technology is relatively new. Advocates believe the smaller scale of SMRs makes them inherently safer. The design is intended make it easier to cool them down should they overheat and some experts say it’s virtually impossible for these types of reactors to overheat.
SMRs are currently in use in a few locations, including China and Russia. However, early reports suggest they are more expensive than anticipated, and they have not yet fully delivered on their projected potential. Experts are optimistic that they’ll be able to optimize SMR’s and implement them on a wider scale soon.
Regulatory and Political Hurdles
Outside of Russia and China, these nuclear reactors would be the first of their kind. Regulatory and political barriers could prove significant. Oregon law currently prohibits the construction of nuclear reactors. The ban, enacted in 1980, requires a federally licensed nuclear waste storage site within the U.S., which has not been established.
Umatilla County, Oregon, is working on a pilot project for SMRs, partnering with State Representative Bobby Levy to introduce a bill in the next legislative session. The federal government can also play a role, as President Joe Biden recently committed $900 million to support nuclear technology development and implementation, and the technology has some bipartisan appeal.
Timeline and Projected Impact
The optimistic timeline projects the reactors going online between 2032 and 2035. With rapid advancements in technology, it will be important to see how energy demands evolve while the technology is being developed. Amazon would likely have priority in using the electricity generated by the reactors to power its data centers.
“As time goes on and they continue to build more of these SMRs, [Energy Northwest hopes] that energy will start to flow to other utilities and could be felt by consumers, that they would be the beneficiaries of this plentiful power source,” Sierra said.
