Amazon is spending over $1 billion on a new nuclear energy project to power its next data centers — but will it really live up to the test?

Amazon plans to buy power from 12 proposed Indiana nuclear reactorsThe proposed facility could deliver 960 megawatts to Indiana’s electricity gridX-energy’s Xe-100 reactors would use helium cooling and TRISO fuel

Amazon is backing a proposed nuclear power development in Indiana designed to supply electricity for its expanding data center operations and the regional grid.

The project involves 12 small modular reactors from X-energy, with a combined planned output of 960 megawatts, although construction and commissioning dates remain uncertain.

Amazon hasn’t disclosed the specific amount it is putting into the Indiana project, but it says it is “investing billions in nuclear energy projects” overall. This confirmation, coupled with its lead role in X-energy, suggests the commitment could plausibly exceed $1 billion, though that is speculation.

Twelve reactors face an uncertain road to operation

The planned installation would occupy the former Breed coal generating station site in Sullivan County, Indiana, where developers intend to establish new nuclear generating capacity.

Each Xe-100 reactor is designed to generate 80 megawatts using helium gas for cooling and specially engineered uranium fuel particles known as TRISO.

X-energy says TRISO fuel resists extreme temperatures, while the Xe-100 design aims to limit reliance on active safety systems during certain accident scenarios.

However, the proposed Indiana installation remains a development project, and the United States has yet to operate a commercial small modular reactor supplying electricity.

Amazon's partnership with X-energy dates back to 2024, when the technology company led a $700 million financing round supporting reactor development and fuel production preparations.

That funding included work on reactor licensing and the initial stage of a TRISO-X fuel manufacturing facility in Oak Ridge, Tennessee.

The Indiana proposal forms part of a separate ambition to introduce more than 5 gigawatts of nuclear generating capacity across the United States by 2039.

Amazon would purchase electricity from the proposed installation, providing developers with an expected customer while the project advances through planning and regulatory requirements.

“New technologies like this often need initial customers to help de-risk projects and provide funding so they can be built and scaled to commercial availability,” said an Amazon spokesperson.

Regulatory approvals could determine the timeline

Regulatory approvals remain a key obstacle, and coordinating construction across the proposed facility could complicate delivery.

Nuclear developers in America generally pursue either approval for a standard reactor design or authorization covering a specific installation and its location.

X-energy has reported progress toward a construction permit for a separate Texas development, but that authorization would not automatically approve its Indiana proposal.

The Texas project involves four reactors intended to support a Dow chemical manufacturing facility, substantially fewer units than the planned Indiana installation.

According to the South Bend Tribune, an X-energy representative indicated that the Indiana facility could become operational during the middle of the 2030s.

The representative warned that the schedule could change as the project progresses, so the mid-2030s estimate remains provisional.