Amazon is funding the development of a proposed 960-megawatt nuclear power plant in Indiana, featuring 12 small modular reactors supplied by X-energy. The facility would be operated by American Electric Power (AEP), with Amazon becoming its first electricity customer to support its data centers and the regional power grid.
The agreement announced on October 19 outlines plans to develop the facility at the former Breed Generating Station, a demolished coal-fired power plant south of Terre Haute. Each of the 12 Xe-100 reactors would generate 80 megawatts of electricity, providing a combined capacity of 960 megawatts.
Amazon Expands Nuclear Energy Partnership With X-energy
The Indiana project represents the second commercial collaboration between Amazon and X-energy, following their initial agreement in October 2024. Amazon previously led a $700 million Series C-1 funding round for the nuclear technology company, with both firms targeting more than 5 gigawatts of new nuclear generating capacity across the United States by 2039.
Unlike some proposed data center power plants, the Indiana facility would connect directly to the public electricity grid. Amazon intends to purchase electricity under a long-term agreement, although construction remains subject to feasibility assessments, regulatory approvals, and a final investment decision.
AEP and X-energy will evaluate the project under a joint development agreement, with Amazon providing development funding. If completed, the facility could create more than 1,000 construction jobs and over 100 permanent positions, according to the companies.
X-energy Faces Regulatory and Construction Challenges
The project’s development depends partly on X-energy successfully completing its first planned nuclear installation at Dow Chemical’s Seadrift facility near Houston, Texas. The site is expected to contain four Xe-100 reactors supplying heat and electricity to the chemical manufacturing plant.
Construction at Seadrift has not begun, although X-energy said its permit application was approaching the final stages of review by the U.S. Nuclear Regulatory Commission. Separately, Texas authorities filed a lawsuit against Dow Chemical in February, alleging repeated violations of water and solid-waste regulations at the facility.
Small modular reactors are designed to be manufactured in standardized units, potentially reducing construction costs and delays compared with conventional nuclear plants. However, industry experts have warned that achieving meaningful manufacturing cost reductions could take approximately a decade.
X-energy Shares Decline Following April IPO
X-energy went public on the Nasdaq in April 2026, pricing its initial public offering at $23 per share. Its stock increased 27% during the first trading session but subsequently lost nearly two-thirds of its value.
Following the Indiana project announcement, X-energy shares rose approximately 10% in premarket trading. However, the stock was down by less than 2% at the time of the initial report.
Featured image credits: Wikimedia Commons
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