Amazon’s Nuclear Strategy: Korean Powerhouses Join Forces for SMR Deployment

Amazon’s Strategic Nuclear Partnerships

Partner	Role/Contribution	Focus
X-energy	SMR technology provider (Xe-100, TRISO-X fuel)	Deployment in U.S. market
Korea Hydro & Nuclear Power (KHNP)	Regulatory, operational expertise	Support U.S. nuclear push, evaluate global expansion
Doosan Enerbility	Manufacturing expertise	Accelerate SMR deployment
PacifiCorp	Utility partner	Develop 4 SMRs in Washington State (~960 MW)
Dominion Energy	Utility partner	Develop SMRs near existing assets in Virginia

Amazon nuclear strategy is taking shape with a high-profile partnership announced on August 25, 2025, that ties U.S. cloud demand to advanced nuclear technology.

X-energy announced a strategic cooperation agreement with Amazon, Korea Hydro & Nuclear Power (KHNP) (Hanguo Shuidian Heidian Gongsi 韩国水电核电公司), and Doosan Enerbility (Doushan Nengyuan 斗山能源).

The deal aims to accelerate deployment of X-energy’s Xe-100 fourth-generation advanced small modular reactors (SMRs) and TRISO-X fuel in the U.S. market.

The push is explicitly framed to address rising power needs from data centers and AI infrastructure.

What the Deal Actually Is

Amazon previously invested $500 million in X-energy through its Climate Pledge Fund.

That equals a reported investment of over ¥3.58 billion RMB ($500 million USD) across partnerships tied to X-energy and other SMR projects.

Under the new agreement, KHNP, Doosan Enerbility, and other South Korean industrial partners will support Amazon and X-energy’s U.S. nuclear push, and will also evaluate opportunities for global expansion.

KHNP is part of Korea Electric Power Corporation (KEP) (Hanguo Dianli 韩国电力).

Doosan Enerbility is a subsidiary of Doosan Group (Doushan Jituan 斗山集团).

Both bring regulatory, manufacturing, and operational experience that can accelerate SMR deployment timelines.

Why Amazon Is Betting on Nuclear for Data Centers and AI

Amazon has been expanding into the nuclear energy sector using a mix of direct investment, power purchase agreements, equity stakes, and international partnerships.

The core driver is simple: data centers and AI require continuous, high-intensity power, and nuclear provides stable baseload electricity.

A Goldman Sachs report cited in the coverage projects that data center electricity demand could increase by 160% by 2030.

That projection helps explain why companies like Amazon are locking into long-term strategies that pair compute-heavy infrastructure with reliable grid-scale power sources.

Why SMRs Make Sense for Tech Companies

• Smaller footprint: SMRs have a more compact physical and regulatory footprint compared to traditional reactors.
• Faster construction: Modular construction theory promises shorter build cycles and factory-based manufacturing.
• Potentially lower site risk: Their design makes pairing them with large facilities, like data center campuses, more feasible.
• Fuel advances: TRISO-X fuel—made from HALEU—offers high-temperature resistance out to 1600℃ and multiple containment barriers, improving fuel utilization and safety margins.

However, SMR technology remains in early commercial stages and still requires full regulatory approvals before mass deployment.

Amazon’s SMR Projects and Partnerships

Amazon has signed cooperation agreements with three companies, including X-energy, investing in a package of projects totaling the previously noted ¥3.58 billion RMB ($500 million USD) figure.

Key projects include a partnership with PacifiCorp (Xibei Nengyuan Gongsi 西北能源公司) to develop four SMRs in Washington State, targeting roughly 960 megawatts of installed capacity by the early 2030s.

Amazon is also collaborating with Dominion Energy (Daomingni Nengyuan 道明尼能源) in Virginia to develop SMRs near Dominion’s existing nuclear assets.

Big Tech’s Broader Move into Nuclear

Amazon is part of a wider industry trend where major tech firms and AI backers are exploring nuclear as a strategic power source.

Examples include OpenAI founder Sam Altman’s investment in Oklo, Google’s partnership with Kairos and the Tennessee Valley Authority on the Hermes 2 50-megawatt plant, and Microsoft exploring restarts of legacy plants like Three Mile Island.

These moves signal that hyperscalers view nuclear as a critical lever for ensuring predictable power and meeting carbon targets in the era of AI.

Market Context: Policy, Auctions, and Sentiment

US Nuclear Industry Tailwinds & Challenges

Category	Description
Tailwinds	– Growing concerns over power shortages and AI-driven demand – Trump administration’s executive orders to revitalize nuclear industry – Renewed interest in capacity markets (e.g., PJM electricity market auctions) – U.S. “AI national policy” emphasizing power infrastructure
Challenges/Considerations	– SMR technology still in early commercial stages – Requires full regulatory approvals before mass deployment in each jurisdiction – Timelines and operational risk remain real

Huatai Securities (Huatai Zhengquan 华泰证券) issued a research note saying U.S. nuclear opportunities are becoming more tangible amid worries about power shortages and AI-driven demand.

The note highlights four executive orders from former President Trump on May 23 aimed at revitalizing the U.S. nuclear industry as a clear tailwind.

It also points to renewed interest in capacity markets, such as auctions in the PJM electricity market, and the U.S. “AI national policy” emphasis on power infrastructure.

The overall takeaway is that political and market signals are aligning to make nuclear restarts and new builds a possible reality rather than a distant expectation.

China’s Parallel Push: Fusion Energy and Industrial Players

China is not waiting on the sidelines either.

On July 22, China Fusion Energy Co., Ltd. (Zhongguo Jujiao Nengyuan Youxian Gongsi 中国聚变能源有限公司) was established in Shanghai as a direct second-level unit under China National Nuclear Corporation (CNNC) (Zhonghe Jituan 中核集团).

This new entity will focus on fusion engineering commercialization, technology verification, digital R&D platforms, and capital operations.

The company signed capital increase and share expansion agreements with several state and private players for a total of ¥11.5 billion RMB, and CNNC will hold 50.35% after the capital increase.

Who to Watch in China’s Fusion and Nuclear Supply Chain

• Jinbei Electric (Jinbei Diangong 金杯电工): Leading manufacturer of ultra-high voltage electromagnetic wires used in fission projects.
• Guangda Special Materials (Guangda Tecai 广大特材): Supplies superconducting coil armor materials and fusion-related components.
• Xuchang KETOP Electric (Xujie Dianqi 许继电气): Holds technical capabilities in poloidal field magnet power supply projects for magnetic confinement fusion.
• Dongfang Electric (Dongfang Dianqi 东方电气): Developed the first batch of blanket shielding modules for ITER (Quanqiu Zui Da “Ren Zao Taiyang” 全球最大“人造太阳”).
• Shanghai Electric (Shanghai Dianqi 上海电气): Has a full nuclear equipment manufacturing chain, from nuclear island to conventional equipment and spare parts.

Investor and Founder Takeaways

• For Investors: Focus on supply-chain plays and engineering firms that support SMR and fusion projects as policy and utility procurement create new demand windows.
• For Founders: Opportunities exist for innovation in manufacturing, digital plant operations, and HALEU (High-Assay Low-Enriched Uranium) supply chain services bridging tech firms and reactors.
• For Tech Operators: Consider long-term power contracts and co-location strategies with SMRs for resilient, low-carbon infrastructure to support AI and cloud operations.

Risks and Reality Checks

SMRs and TRISO-X present technical and regulatory promise, but full commercial rollouts still depend on approvals and permitting in each jurisdiction.

Political winds and capacity market signals are improving the business case, but timelines and operational risk remain real.

Where This Story Likely Goes Next

• Expect more cross-border consortiums as utility operators, private conglomerates, and hyperscalers align on siting and construction risk-sharing.
• Look for supply-chain consolidation around HALEU fuel, advanced manufacturing for modular reactor components, and digital control platforms.
• Keep an eye on regulatory milestones for SMR certification and demonstration projects in the early 2030s.

This is a clear, strategic example of how hyperscalers are moving from short-term renewables procurement to longer-term investments in baseload low-carbon power like SMRs and fusion initiatives.

Key keyword: Amazon nuclear strategy.

References

• Amazon’s Nuclear Project Welcomes New Partner – East Money
• Amazon’s nuclear power project welcomes new partner, top Korean consortium joins; institutions optimistic about global nuclear energy industry chain investment opportunities – KCB Daily
• X-energy Official Website
• Korea Hydro & Nuclear Power (KHNP) Official Website
• Doosan Enerbility Official Website

Amazon nuclear strategy.