• Ken Griffin and Amazon collaborate on a $500 million investment in X-energy.
  • The partnership aims to deploy 5 GW of nuclear energy by 2039.
  • This move reflects a broader tech industry trend towards clean energy.

Amazon and billionaire Ken Griffin have announced a $500 million investment in X-energy, a leading developer of advanced small modular reactors (SMRs), according to people familiar with the matter. This substantial financial commitment aims to facilitate the deployment of 5 GW of nuclear energy by 2039, with projects earmarked for Washington state and Virginia.

X-energy, known for its innovative nuclear reactor and fuel technology, including the Xe-100 SMR, will benefit significantly from this infusion of capital. The investment is anchored by Amazon's Climate Pledge Fund, with participation from Griffin, Ares Management Corporation, NGP, and the University of Michigan. This funding round will support the reactor's design completion, licensing, and the initial phase of its TRISO-X fuel fabrication facility.

The initiative aligns with Amazon's ambitious goal of achieving net-zero carbon emissions by 2040, as the tech giant seeks to power its vast and expanding data center operations with clean and reliable energy sources. Notably, data centers are projected to consume up to 9% of the nation's electricity by 2030, underscoring the urgency of this transition.

The investment has garnered praise from U.S. Secretary of Energy Jennifer Granholm, who highlighted the critical role of clean power in supporting data center expansion across the country. This partnership is part of a broader industry trend, with other major tech players like Google and Microsoft also making strides in nuclear energy investments to meet sustainability goals.

Without a deal, X-energy would face challenges in scaling its operations to meet the anticipated energy demands. However, with strong backing from Amazon and Ken Griffin, the company is well-positioned to make significant strides in the nuclear energy sector.

Efforts to reach Ken Griffin and Amazon for additional comments were unsuccessful.

Industry experts, including X-energy CEO Clay Sell, have emphasized the potential of SMRs to address climate change while meeting rising energy needs. The investment reflects a strategic move to capitalize on the growing importance of sustainable energy solutions in the tech industry.

Correction: This article previously misstated the projected energy consumption of data centers by 2030. It is expected to be 9%, not 5%.