American Electric Power (AEP) and X-energy are studying a proposed 960-megawatt nuclear plant in Indiana with Amazon funding, a plan the companies say could supply the grid without burdening existing customers.
The companies announced their agreement Oct. 19. They are evaluating a location around the former Breed Generating Station in Sullivan County for 12 Xe-100 small modular reactors, each with a proposed capacity of 80 megawatts. Amazon says electricity from the plant would serve the regional grid and its data centers.
X-energy says Amazon’s development funding is tied to project milestones. AEP says Amazon intends to buy the electricity through a long-term agreement if the plant reaches commercial operation. The proposed contract would have Amazon pay the project’s costs and operating expenses while the agreement remains in force, AEP says.
AEP Chairman, President and CEO Bill Fehrman said the arrangement aims at “protecting affordability for existing customers.” Amazon Vice President of Data Center Infrastructure Capacity Delivery Josh Weissman said the company wants to “pay our full costs without passing them to others.” AEP says its agreements would provide financial safeguards for existing customers, but the announcements do not set out their terms.
Amazon estimates the project could create more than 1,000 construction jobs and more than 100 permanent jobs if it proceeds. The company links its interest in nuclear power to rising electricity demand, including demand from AI. Indiana is the second proposed project in Amazon and X-energy’s collaboration, following the planned Cascade Advanced Energy Facility in Washington state. The partners aim to develop more than 5 gigawatts of new U.S. nuclear capacity by 2039.
The companies’ announcements do not specify the development funding amount, power price, contract length or construction timetable. X-energy lists site suitability, financing and regulatory approvals as potential risks in its forward-looking statements. A final investment decision would be required before construction; AEP gave no date for one.
