Amazon is diving deep into nuclear power as part of its ambitious data-center expansion plan, investing over $52 billion across three U.S. states. The e-commerce giant has inked 3 key deals to explore and develop small modular reactors (SMRs).
SMRs are a new type of nuclear technology that promises more efficient, compact, and clean power generation. AWS CEO Matt Garman noted that SMRs present unique potential to provide scalable and reliable power to meet the ever-growing energy needs of data centers.
Shares of nuclear companies surged following Amazon’s announcement of the agreements. Nano Nuclear Energy and Nuscale Power saw their shares rise nearly 10% in premarket trading, while Oklo experienced an over 11% increase.
Small Reactors, Big Ambitions
SMRs are advanced nuclear reactors designed to be less than 10% of the size of traditional nuclear plants. But they can generate up to about ⅓ of the power output of traditional reactors. As such, they allow for easier deployment and integration into the energy grid.
Developers aim to have these reactors generating electricity by the early 2030s, contingent on receiving approval from the Nuclear Regulatory Commission (NRC) to build and operate their designs, as well as proving the technology’s viability.
Amazon’s most recent collaboration with Dominion Energy, a $48 billion market-cap utility company, aims to explore the deployment of SMRs in Virginia near Dominion’s North Anna power station in Louisa County.
Virginia hosts nearly half of all U.S. data centers, with a significant concentration in Northern Virginia, particularly in the Data Center Alley, located in Loudoun County. It is estimated that 70% of the world’s internet traffic passes through Data Center Alley each day.

The region has experienced a doubling of power demand over the last 5 years. It is also projected to see a 4x increase over the next 15 years. The planned SMR could contribute at least 300 megawatts of power, which could support multiple data centers in the region.
AWS has committed to investing $35 billion by 2040 to develop multiple data center campuses across Virginia, as announced by Governor Youngkin last year.
Nuclear Meets the Cloud: Dominion, X-Energy, and Amazon
Garman emphasized that the push for nuclear is part of Amazon’s broader goal of achieving net-zero emissions by 2040. He noted that:
“We see the need for gigawatts of power in the coming years, and there’s not going to be enough wind and solar projects to be able to meet the needs, and so nuclear is a great opportunity.”
The specific targets for nuclear’s contribution to AWS’s power needs remain undisclosed. But Garman noted that Amazon hopes SMRs will be a “material source of power generation” by 2040.
Alongside the Dominion deal, Amazon announced agreements to develop SMRs in Washington state with Energy Northwest, a public power agency, and to back X-energy, an advanced nuclear startup.
X-energy is building its first SMR project in Seadrift, Texas, in collaboration with Dow Chemical. Amazon is providing significant financial support to X-energy, anchoring a $500 million investment through its Climate Pledge Fund. This commitment aims to bring 5 gigawatts of SMR-based energy online across the U.S. by 2039.
Why Small Modular Reactors?
The said SMRs could power entire mid-sized cities, but for Amazon, they’re integral to supporting the energy-intensive demands of data centers, especially those driven by artificial intelligence (AI). Data centers require stable and continuous energy supplies, something that SMRs, unlike intermittent renewable sources like wind or solar, can reliably offer.
With capacities of up to 300 megawatts, SMRs can be tailored to meet local energy demands, making them suitable for data centers and other energy-intensive operations. X-energy’s Xe-100 reactor, for example, can produce 80 megawatts of power per unit, with the flexibility to scale up by deploying multiple reactors at a single site.
Another key advantage is the carbon-free nature of nuclear power, aligning with Amazon’s goal of reducing its environmental impact. Unlike fossil fuels, nuclear energy does not produce greenhouse gas emissions during operation. Thus, it offers a reliable solution for tech companies seeking to curb their carbon footprints.
AWS, like its peers, is committed to cutting emissions, but it has faced challenges. In 2023, Amazon’s carbon footprint was just under 69 million metric tons of CO2, slightly lower than its peak in 2021 but still substantial.

Beyond Virginia
Beyond its partnership with Dominion in Virginia, Amazon is also eyeing other regions for SMR projects. In Washington, it is collaborating with Energy Northwest to build an SMR near the Columbia Generating Station in Richland. This project aims to provide up to 960 megawatts of power, with Amazon securing the rights to purchase electricity from the first 320 megawatts produced.
This flexibility makes SMRs appealing for scaling energy projects across different regions. It enables Amazon to replicate its nuclear model wherever energy demand is high. AWS recently acquired a 960-megawatt data center campus in Pennsylvania from Talen Energy, which includes access to fixed-price nuclear power from Talen’s Susquehanna nuclear plant.
Amazon’s Nuclear Bet to Meet Data Center Demand
Amazon’s venture into nuclear power mirrors a broader industry trend. Google recently announced its own SMR project with Kairos Power. Similarly, Constellation Energy is planning to restart operations at the iconic Three Mile Island to power Microsoft’s data centers. Sundar Pichai, Google’s CEO, expressed optimism about the potential of SMRs, highlighting the surge of capital and innovation driving the technology forward.
X-energy CEO Clay Sell sees a significant opportunity in this trend, noting that demand for nuclear energy, especially in the context of AI’s energy requirements, is reshaping how companies think about power in the U.S.
The Biden administration has invested billions into clean energy initiatives. As part of Amazon Web Services’ recent announcement, U.S. Energy Secretary Jennifer Granholm revealed that an additional $900 million in funding is now available for projects aiming to deploy SMRs. This funding supports the broader push to accelerate clean and reliable energy solutions across the nation.
For Amazon, SMRs represent a promising path forward. While the journey to widespread deployment of advanced nuclear technology is fraught with challenges, the potential payoff—a more resilient, sustainable energy future—makes the effort worthwhile.
The post Amazon Turns to Nuclear and SMRs For Its $52B Data Center Expansion appeared first on Carbon Credits.
Carbon Footprint
The Strategic Case for Nature-Based Carbon Investments
Nature-based carbon investments deserve consideration when they address a specific business dependency and produce outcomes you can measure. Imagine Moonbucks, a global coffee roaster planning next season’s espresso blend. It is considering natural Grade 4 coffee from Jimma, in southwestern Oromia, Ethiopia. Its sourcing decisions affect the roasting schedule and the cash tied up in coffee purchases. Moonbucks needs to understand which measures could protect that supply, what they would cost and how it would judge the results.
1. Define the sourcing problem before choosing a project
Moonbucks needs a dependable component for its espresso blend. Its procurement team wants continuity of volume and an agreed cup profile. Replacing a shipment at short notice could require new sample approval and changes to the blend, and given the schedules for cultivation, processing, and freight delivery, is practically impossible. Moonbucks needs to get this right, and its initial concern is inconsistent deliveries. It commissions an assessment of the supplying farms and post-harvest chain. The questions cover land condition, harvest availability and whether drying or storage problems are affecting saleable lots.
This distinction changes the investment brief. A tree-planting proposal cannot be assumed to fix drying problems. Better storage cannot restore eroded land. The team must establish which problem exists before selecting the response.
CCC’s guide to finding nature-based solutions in your supply chain explains where to look. Here, the next task is to turn a broad concern into a testable proposal.
2. Develop nature-based carbon investments around the actual supply chain
The assessment would trace Moonbucks’ purchases back through the exporter and supplying producer groups. Which farms supply the contracted lots? Who controls land-management decisions? How long does the buyer expect to maintain the purchasing relationship?
Furthermore, Jimma natural Grade 4 cannot be treated as interchangeable with every Ethiopian coffee. Moonbucks would need to test any substitute against its own blend and quality requirements.
Suppose Moonbucks’ assessment identifies an opportunity to maintain shade trees and restore vegetation along exposed streambanks. The IPCC describes agroforestry as a way to store carbon in vegetation and soil, with potential benefits for erosion control and water quality.1 Moonbucks would need local advice on species, growing conditions and maintenance before deciding how these measures fit its sourcing plan.
The proposal now has a defined sourcing connection and a candidate intervention. The next steps are to test its effect on production, assess carbon eligibility and build the financial case.
3. Compare the proposal with other ways to protect supply
WBCSD’s Nature-based Solutions Blueprint recommends comparing nature-based options with other responses across their benefits and costs.2 For Moonbucks, that means evaluating the landscape proposal alongside drying improvements, storage controls and alternative sourcing arrangements.
The product’s natural-process designation matters. Moonbucks should examine the drying and dry-milling chain alongside land conditions. Its team would check storage practices, contamination risks and incoming-lot quality to see whether problems arise before or after the coffee leaves the farms.
The revised proposal might combine land stewardship with separate post-harvest controls. Each component needs its own purpose and budget. A sustainability label should not obscure which activity is expected to solve which problem.
The project develops as the evidence improves. Its scope should follow the diagnosis rather than preserve the first idea unchanged.
4. Establish what the carbon outcome could count toward
Moonbucks’ sustainability team now tests the proposed carbon case separately from the sourcing case. Is the objective a measurable change in Moonbucks’ value-chain emissions, verified credits for separate voluntary use, or distinct outcomes under carefully defined arrangements?
Scope 3 covers value-chain emissions. A purchasing relationship alone does not prove that a farm intervention can be included in Moonbucks’ inventory. The team needs an applicable accounting method, defensible boundaries and evidence supporting attribution.
SBTi’s FLAG Guidance (forest, land and agriculture), version 1.2, says purchased credits used as offsets cannot meet near-term FLAG or energy and industry targets. Eligible land-based removals are subject to accounting requirements.3 Moonbucks needs to test its proposal against those rules before including an outcome in its targets.
For Moonbucks’ Jimma proposal, maintaining existing trees and establishing new vegetation could involve different carbon questions. Specialists must examine the baseline and additionality, meaning what changes because the project proceeds. They must also assess measurement and the risk that stored carbon is lost. CCC’s MRV and additionality article introduces those tests.
Until that work is complete, Moonbucks should not budget an assumed Scope 3 reduction or credit-sale receipt. Direct emissions reductions remain the priority.
5. Build a financial case that survives weaker assumptions
Moonbucks’ finance team would now build a multi-year budget. UNEP’s State of Finance for Nature 2023 compares current finance with the investment needed to meet climate, biodiversity and land-restoration goals.4 The company would cost its proposed activities, farmer participation and ongoing monitoring. Verification, where required, is a separate expense. Maintenance and responsibility for replacing failed plantings must remain visible after the initial establishment budget ends.
Operational benefits need equally careful treatment. If fewer rejected lots reduce emergency purchasing, count that saving once. Do not add “supply resilience” as another financial benefit when it represents the same avoided cost.
Moonbucks should compare a base case with slower benefits, higher implementation costs and no carbon revenue. It should also distinguish production outcomes from quality and shipment outcomes. A single good harvest would not prove that the landscape intervention caused better delivery performance.
A project can remain worth funding even when its carbon case needs more work. That decision must rest on the operational evidence and the company’s objectives, without unsupported environmental claims.
6. Fund a pilot with a clear expansion decision
Moonbucks’ first approval would fund a bounded pilot, rather than commit the entire sourcing program. Before spending, Moonbucks would agree on participating farms, responsibilities and the evidence needed at review.
Its scorecard could track farmer participation, implementation costs and plant survival, alongside accepted coffee volumes and lot-quality results. Carbon measurements would follow the selected method. Farm-level traceability must connect the intervention to the actual sourcing relationship.
Suppose Moonbucks’ review later finds that storage changes explain most quality improvements, while the land measures need longer observation. Those findings would shape the next decision: expand the proven component, adjust the landscape work or pause further spending. They would not justify crediting all improvements to tree planting.
This gives nature-based carbon investments a practical place in a multi-year strategy. Funding increases as the evidence supports it, and the project can change direction before a larger commitment.
Discuss a sourcing opportunity with CCC
Carbon Credit Capital’s nature-based supply-chain investment service uses its Dual-Value Model to examine supply-chain economics alongside potential sustainability outcomes.
Schedule a consultation to discuss your sourcing exposure and the questions to resolve before allocating capital.
Sources
- Intergovernmental Panel on Climate Change (IPCC), Climate Change 2022: Mitigation of Climate Change, Chapter 7, Agriculture, Forestry and Other Land Uses, section 7.4.3.3 (Agroforestry).
- World Business Council for Sustainable Development (WBCSD), Nature-based Solutions Blueprint, 5 June 2024.
- Science Based Targets initiative (SBTi), Forest, Land and Agriculture Science-Based Target-Setting Guidance, version 1.2, March 2026, section 3.1.4, pp. 37–38.
- United Nations Environment Programme (UNEP), State of Finance for Nature 2023, 2023.
Carbon Footprint
How to buy plastic credits, and what to check before you do
A plastic credit funds the collection of plastic waste in places where no formal system exists to collect it. Each credit represents a measured, independently audited quantity of plastic taken out of the environment or returned to use, tracked on a public registry.
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Carbon Footprint
EU carbon credit claims after 27 September 2026
EU carbon credit claims changed on 27 September 2026, the day the Directive (EU) 2024/825 began to apply across the European Union. The change is narrow. It changes how a company can talk about the credits it buys. A product can no longer be called neutral on the strength of compensation alone; however, every specific, evidenced statement about what a company measured, reduced, and funded stays fully available.
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