Amazon Funds AEP and X-Energy Plan for 960 MW Indiana Nuclear Plant

Amazon, X-energy, and American Electric Power (AEP ) have signed an agreement to evaluate building a 960-megawatt advanced nuclear plant at the former Breed Generating Station coal site in Sullivan County, Indiana, with Amazon funding development and intending to purchase the plant’s power under a long-term contract, Amazon announced (AMZN ) on October 19, 2026. The three companies would target building 12 of X-energy’s Xe-100 small modular reactors, which they say would add 960 megawatts of carbon-free energy serving both the regional power grid and Amazon’s data centers.

AEP described the arrangement as a joint development agreement with X-energy, with Amazon supporting the project’s development through a funding agreement. Amazon is serving as a project development funder and would be the first customer to purchase power from the plant once operational. According to AEP’s October 19, 2026 news release, Amazon intends to purchase the power under a long-term contract covering the costs of the facility and its operations for the duration of the contract.

The initial project would include 12 Xe-100 units of 80 megawatts each, configured in groups of four, for a total of 960 megawatts, according to AEP. If the project reaches a final investment decision and advances to construction and commercial operation, AEP would own and operate the facility, with the reactors added in phases and connected directly to the regional electric grid, according to Indiana Michigan Power’s project page.

AEP chairman, president, and chief executive officer Bill Fehrman said, “Our agreements with Amazon and X-energy will provide all necessary capital protections and financial safeguards that we have said are essential for any potential nuclear project to move forward.” Indiana Michigan Power, the AEP utility whose former Breed Generating Station would host the project, states that the development and funding agreements are designed to provide financial safeguards for AEP’s customers and investors.

Josh Weissman, Amazon’s vice president of data center infrastructure capacity delivery, tied the project to the company’s Climate Pledge goal of reaching net-zero carbon across its operations by 2040. “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,” he said. X-energy CEO J. Clay Sell said the effort pairs AEP’s 50 years of nuclear operations with Amazon’s expertise. Indiana Governor Mike Braun said the companies’ decision to explore the technology represents the kind of innovation and investment that can deliver lasting benefits for the state, pointing to the potential for well-paying jobs in Sullivan County and a stronger electric grid. AEP noted that Sullivan County recently became part of the Indiana Advanced Nuclear Ready Communities Program, which supports the opportunity for an advanced nuclear project.

Amazon’s X-Energy Partnership and the Xe-100 Reactor

Amazon describes the Indiana proposal as the second project under its collaboration with X-energy to add more than 5 gigawatts of new nuclear capacity to the U.S. grid by 2039, following the Cascade Advanced Energy Facility in Washington state.

Amazon’s relationship with X-energy began through the Climate Pledge Fund, Amazon’s $2 billion venture investment program supporting its net-zero commitment. Amazon led X-energy’s Series C-1 financing round in 2024, which closed at $700 million, to fund completion of the reactor’s design and licensing and the first phase of the TRISO-X fuel fabrication facility in Oak Ridge, Tennessee.

The Xe-100 is an 80-megawatt high-temperature gas-cooled reactor that uses helium as a coolant and is powered by TRISO fuel, which Amazon notes the U.S. Department of Energy has described as the most robust nuclear fuel on Earth for its ability to withstand extreme temperatures beyond any credible accident scenario. Amazon states that the helium coolant and TRISO fuel create a design in which the reactor’s physics prevent a meltdown without requiring active systems or human intervention, and that Xe-100 plants can use air-cooled condensers, water-cooled systems, or a hybrid approach, supporting deployment in water-constrained regions. Indiana Michigan Power describes TRISO-X as coated fuel particles designed to retain radioactive material within multiple protective layers, and states that the reactor’s passive safety characteristics rely on fundamental physical properties rather than active systems to keep fuel at safe temperatures.

Site Work, Jobs, and the Regulatory Path

The proposed plant would redevelop the former site of the coal-fueled Breed Generating Station. Amazon states the facility could create more than 1,000 construction jobs and more than 100 permanent jobs. AEP states that if the project advances beyond the development phase into construction and commercial operation, it is expected to create jobs, expand the local tax base, and strengthen Indiana’s energy infrastructure for more than 60 years.

According to the Indiana Michigan Power project page, the next steps include further developing and licensing project sites, obtaining necessary infrastructure and property rights, community and stakeholder engagement, Nuclear Regulatory Commission licensing, regulatory and interconnection approvals through PJM, and project financing decisions, all described as multi-year processes before any final investment decision. In September 2026, I&M and AEP representatives began early field work and environmental surveys around the site, including subsurface drilling to install groundwater monitoring wells and collect boring samples required to characterize the site for the NRC’s Early Site Permitting Application process. I&M has operated the Cook Nuclear Plant in Bridgman, Michigan, since 1975.

Amazon states that earlier in 2026 it signed the White House Ratepayer Protection Pledge, committing to pay the full electricity costs of serving its data centers, including additional infrastructure, without passing costs to others. Amazon also states that AEP has announced a plan to lower residential rates by $100 starting in 2027 and freeze them for three years, following an average 3.6% base rate reduction in June 2026 that Amazon attributes to increased revenue from large customers.

Amazon states its carbon-free projects contributed $160 million to Indiana’s GDP from 2023 through 2025, supported more than 100 jobs per year, and contributed more than $11 million in tax revenue. The company reports more than 700 carbon-free energy projects globally, totaling over 40 gigawatts.