American Electric Power (AEP), the Ohio-based electric utility giant, has joined forces with nuclear technology innovator X-energy and e-commerce and cloud computing leader Amazon to evaluate the deployment of a major advanced nuclear energy project in Indiana. The proposed initiative aims to develop a 960-megawatt (MW) facility at the site of the former Breed Generating Station, marking a significant step forward in the integration of next-generation nuclear technology to power modern industrial and technological infrastructure.
Under the newly announced agreement, the companies will assess the feasibility of building a state-of-the-art nuclear facility utilizing X-energy’s Xe-100 small modular reactor (SMR) technology. The ambitious layout for the proposed plant calls for the installation of 12 individual reactors, each possessing a capacity of 80 MW. These reactors would be organized into operational groups of four, culminating in a total combined generation capacity of 960 MW.
Amazon is participating directly in the venture as a project development funder. Furthermore, the tech giant is slated to become the facility’s primary customer, purchasing the carbon-free electricity generated by the plant once it successfully reaches commercial operation.
The collaboration arrives at a critical juncture for the energy sector. Small modular reactors are advanced nuclear systems engineered to be substantially smaller than traditional, large-scale nuclear power plants. This compact design yields several distinct operational advantages, including markedly faster construction timelines and the flexibility to be deployed closer to load centers and the electrical grid. Most importantly, SMRs deliver continuous, reliable, carbon-free energy. This technology has increasingly commanded the attention of utility operators and technology companies alike as a viable, scalable solution to satisfy the skyrocketing power demands driven by widespread industrial electrification and energy-intensive data centers.
X-energy, founded in 2009 and headquartered in Rockville, Maryland, specializes in the design and development of advanced nuclear reactors and specialized fuel technology. A cornerstone of X-energy’s technical approach is its proprietary TRISO-X fuel. Unlike conventional nuclear fuel assemblies, TRISO-X fuel seals individual uranium particles within a robust, multi-layered protective coating. This advanced design is engineered to withstand extreme temperatures without melting, effectively preventing the release of radioactive materials under virtually all operating conditions and eliminating the necessity for large, traditional containment facilities.
The company’s flagship SMR reactor, the Xe-100, is a high-temperature gas-cooled reactor designed to operate at thermal efficiencies exceeding 750 degrees Celsius. The reactor core is fueled by more than 200,000 TRISO-X-based fuel pebbles. These pebbles are continuously fed into the core via a gravity-driven rotation system, allowing the reactor to run continuously without scheduled fuel interruptions for up to 60 years. During operation, inert helium gas is circulated through the core, absorbing immense amounts of heat. This superheated helium is then channeled to boil water into high-pressure steam, which in turn drives a turbine to produce carbon-free electricity.
This latest project builds directly upon a rapidly expanding relationship between Amazon and X-energy. Amazon’s Climate Pledge Fund previously spearheaded a substantial $500 million financing round for X-energy in 2024. In addition to that equity investment, Amazon signed a broad commercial agreement with the nuclear developer aimed at bringing more than 5 gigawatts (GW) of advanced nuclear energy projects online across the United States by the year 2039.
Clay Sell, Chief Executive Officer of X-energy, emphasized the collaborative nature of the initiative and its potential regional impact.
"This effort pairs AEP’s 50 years of excellence in nuclear operations with the world-class expertise of Amazon to chart a new course for Indiana’s energy future, powered by our Xe-100 small modular reactor," Sell said. "Together, we’re working to advance a clean, safe, reliable solution to meet growing energy demand and benefit Indiana and its communities for generations to come."
Should the project successfully navigate preliminary evaluations, secure regulatory approvals, and reach a definitive final investment decision to move forward with construction, the commercial structure is already established. Amazon has agreed to purchase the facility’s power output under a long-term contract. This agreement is designed to fully cover the capital construction costs of the facility as well as its ongoing operational expenses for the duration of the contract term. Beyond providing clean energy, the companies anticipate that the multi-year development will create numerous high-paying jobs, expand the local tax base, and significantly bolster Indiana’s regional energy infrastructure for a projected lifespan of more than six decades.
AEP President and CEO Bill Fehrman highlighted how the project aligns with the utility’s broader operational and financial objectives amid an evolving energy landscape.
"With this development plan, we are working to bring together the resources to help meet unprecedented growth in energy demand with reliable baseload power while protecting affordability for existing customers," Fehrman stated.
The agreement in Indiana represents the latest in a strategic series of nuclear investments and procurement deals pursued by Amazon as the company looks past conventional renewable energy sources, such as wind and solar, to fulfill its long-term corporate sustainability commitments and power its expanding digital infrastructure. Last month, Amazon signed a major 20-year, 690-MW power purchase agreement with Constellation Energy. That transaction was structured to financially support the upgrade and operational life extension of the Calvert Cliffs nuclear plant in Maryland.
Josh Weissman, Vice President of Data Center Infrastructure Capacity Delivery at Amazon, underscored the broader economic and environmental philosophy driving the company’s energy strategy.
"Together, 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," Weissman said. "This project would also create jobs and generate tax revenues to benefit Hoosier communities for decades to come."
