Amazon is backing development work for a proposed 960-megawatt advanced nuclear power plant in Sullivan County, Indiana, as the company seeks long-term electricity supplies for its expanding data center infrastructure. X-energy and American Electric Power announced a joint development agreement on Oct. 19 to evaluate 12 Xe-100 small modular reactors at the retired Breed Generating Station. The former coal-fired facility, which AEP subsidiary Indiana Michigan Power retired, could become a new source of electricity for the regional grid if the project advances. Amazon will fund the development work through milestone-based payments and would purchase the plant’s output under a long-term power contract if construction proceeds and commercial operations begin, according to Utility Dive.

Amazon Links Nuclear Investment to Long-Term Power Demand

The proposed facility would deploy 12 reactors in three groups of four, with each group generating 320 MW of electricity. The arrangement would give Amazon a potential pathway to secure substantial carbon-free power while supporting additional electricity supplies for Indiana’s grid. AEP Chairman, President and Chief Executive Bill Fehrman said the agreements carry “all necessary capital protections and financial safeguards that we have said are essential for any potential nuclear project to move forward.” His comments underscore the importance of managing financial exposure before utilities commit capital to projects that require lengthy development periods and substantial upfront investment.

Amazon has also framed the arrangement around accountability for the costs associated with its electricity demand. Josh Weissman, the company’s vice president of data center infrastructure capacity delivery, said, “We’re looking to develop nearly a gigawatt of carbon-free power for the regional grid and pay our full costs without passing them to others.” The proposed purchase agreement would help underpin the facility’s construction and operating costs, although the companies have not disclosed a project cost estimate. Neither company has announced a construction start date, leaving the project’s timeline and final investment requirements unresolved.

Amazon Expands Its Small Modular Reactor Strategy

The Indiana proposal represents Amazon’s second nuclear power commitment within a short period. On Sept. 30, the company signed a 20-year, 690-MW power purchase agreement with Constellation Energy to support an expansion of Maryland’s Calvert Cliffs nuclear plant. The Indiana development also marks the second deployment under Amazon’s collaboration with X-energy, which aims to bring more than 5 GW of new nuclear capacity to the United States by 2039, World Nuclear News reported. Together, the initiatives point to a strategy that places long-duration electricity contracts and advanced nuclear technology alongside other approaches to meeting data center energy requirements.

The Xe-100 reactor uses a high-temperature, helium-cooled pebble-bed design and produces approximately 80 MW of electricity per unit. Twelve units would therefore provide a combined nameplate capacity of 960 MW, matching the proposed plant’s stated output. Small modular reactors offer a potential alternative to conventional large-scale nuclear projects, although commercial deployment still depends on regulatory approvals, financing, construction and operational readiness. For Amazon, the Indiana study provides an opportunity to assess whether a dedicated nuclear development can support future electricity demand while adding generation capacity to the regional system.

Indiana Prepares for a Data Center Power Surge

Indiana’s electricity requirements are rising as large industrial and digital infrastructure projects seek connections to the grid. Indiana Michigan Power has told regulators that peak load in the state could exceed 7,000 MW by 2030, compared with 2,800 MW, as additional large loads connect. Last year, Indiana approved large-load interconnection rules under a pact the utility filed with Amazon Data Services, Google, Microsoft and other parties. The measures reflect growing attention to how utilities accommodate energy-intensive customers while managing the infrastructure and financial implications of new demand.

Sullivan County has also enrolled in Indiana’s Advanced Nuclear Ready Communities Program, which identifies counties that have taken steps to prepare for potential advanced nuclear development. The designation provides a relevant local context for evaluating the proposed Breed Generating Station project, although it does not itself establish that the plant will receive approval or proceed to construction. Baxtel tracks 146 data center facilities across Indiana operated by 46 providers, with Amazon Web Services listed as the state’s largest operator, at 33 sites. The proposed nuclear project now faces the next stages of feasibility assessment and commercial development, with its eventual contribution to Indiana’s electricity supply dependent on the companies’ findings and their ability to move the project forward.