Amazon: A New Journey into Nuclear Energy for Tech Giants

Amazon becomes the latest tech giant to enter the nuclear energy field, which has attracted widespread attention. In the context of the rapid development of artificial intelligence and the substantial increase in power demand for data centers, Amazon's move has significant strategic implications.

From the perspective of energy demand, as generative artificial intelligence rises, the power demand for tech companies' data centers has exploded. Data shows that training a large language model requires thousands of graphics processing units (GPUs) to run non-stop for several weeks or months, consuming huge amounts of electricity. A single AI model can consume tens of megawatt-hours, while the energy required for a generative AI model like Ch*** times that of a regular search engine. The International Energy Agency predicts that the total electricity consumption of data centers may reach more than 1,000 terawatt-hours by 2026, doubling from 2022. Therefore, finding stable, reliable, and clean energy supplies has become a top priority for tech giants, and nuclear energy meets these needs.

Amazon's moves in the nuclear energy field have been frequent. On October 16, 2024, Amazon announced that it had signed three agreements to develop small modular reactor (SMR) nuclear power technology. In Washington State, Amazon signed an agreement with the state's public utility joint venture Energy Northwest to provide funding for the development, licensing, and construction of four advanced SMRs. The project is expected to produce an installed capacity of 3.2 gigawatts in the first phase, and may be expanded to 9.6 gigawatts in the later stages. In Virginia, Amazon signed an agreement with utility company Dominion Energy to explore developing an SMR project near the North Anna nuclear power plant. If the project is realized, it will generate 300 megawatts of power. In addition, Amazon's Climate Pledge Fund led a $500 million funding round for X-energy, a SMR and fuel developer.

Amazon's choice to enter the nuclear energy field is not only to meet its own power needs for data centers, but also to see the huge potential of nuclear energy in the future energy market. Nuclear energy has high efficiency, a small amount of nuclear fuel can generate a large amount of energy, and compared On the other hand, the influence and exemplary effect of tech giants may change the public's perception of nuclear energy and enhance its social acceptance. However, the development of nuclear energy still needs government support and regulation to ensure its safe and reliable operation.

Amazon's entry into the nuclear energy field as a tech giant is an important move for tech companies to address energy challenges and pursue sustainable development. This trend will not only provide a stable power supply for tech companies' data centers, but also drive the development of the nuclear energy industry and bring about new changes in the future energy landscape. However, at the same time, the development of nuclear energy also needs to continuously strengthen regulation and technological innovation in terms of safety and environmental protection to achieve sustainable development.