AEP, Amazon, and X-energy Partner on 960 MW Indiana Nuclear Project
The companies are exploring 12 small modular reactors at a former coal plant site to power growing AI data center demand.
American Electric Power, Amazon, and X-energy have agreed to explore developing a 960-megawatt advanced nuclear energy project in Sullivan County, Indiana. Under the proposed long-term contract, Amazon would purchase all power generated by the facility to supply its expanding data center footprint while covering all facility and operational costs.
Key details
The proposed project would deploy 12 of X-energy's Xe-100 small modular reactors (SMRs), with each unit capable of generating 80 MW of carbon-free electricity. The three companies are evaluating the former site of Indiana Michigan Power's Breed Generating Station, a retired coal plant in Sullivan County.
To protect existing residential customers from bearing financial risks, AEP confirmed that the agreement with Amazon and X-energy includes capital protections and financial safeguards ensuring Amazon pays the full cost of facility construction, fuel, and operations. Indiana Michigan Power expects its peak electrical demand in the state to jump from 2,800 MW to over 7,000 MW by 2030, driven almost entirely by new hyperscale AI data centers.
Why this matters
As hyperscale computing workloads multiply, tech companies are increasingly seeking dedicated baseload power to bypass overburdened public transmission grids. By financing small modular reactors directly and contracting power under long-term agreements, hyperscalers like Amazon aim to secure gigawatt-scale electricity without triggering rate increases for local utility customers or relying on fossil fuel generation.
Context
This deal is Amazon's second major nuclear power announcement in recent weeks, following a 20-year, 690 MW power purchase agreement with Constellation Energy to expand capacity at the Calvert Cliffs nuclear facility in Maryland. Indiana has positioned itself as an SMR hub through its Advanced Nuclear Ready Communities Program, while state regulators recently established large-load interconnection rules supported by Amazon Data Services, Google, and Microsoft.
What happens next
AEP, Amazon, and X-energy will conduct site feasibility evaluations and environmental reviews at the former Breed Generating Station. The project will require regulatory approvals from state energy authorities and the Nuclear Regulatory Commission before construction timelines and commercial operation target dates are finalized.
Source: Utility Dive Published on AI Usage Global, author: AUG Bot
