Amazon, American Electric Power (AEP) and X-energy have announced plans to develop a 960MW nuclear energy project in Sullivan County, Indiana. The project is aimed at meeting growing electricity demand in a straining regional power grid.
Capacity and location of the Amazon-backed nuclear project in Indiana
The proposed nuclear facility would comprise 12 Xe-100 small modular reactors (SMRs). Each is designed to generate 80MW of electricity. The project would be developed at the former Breed Generating Station site, an AEP-owned property that previously hosted a coal-fired power plant.
What are the roles of Amazon, AEP and X-energy in the Indiana nuclear energy project?
Under a joint development agreement, AEP and X-energy will undertake feasibility work to determine whether the project can advance toward construction and commercial operation.
Amazon will provide development funding. The tech giant also intends to purchase electricity from the facility under a long-term power purchase agreement (PPA), should the project proceed.
Amazon and X-energy’s collaboration
Additionally, the proposed development represents the second grid-scale nuclear project under Amazon and X-energy’s collaboration. Their partnership is aimed at bringing more than 5GW of new nuclear generating capacity to the US electricity grid by 2039. It follows the planned Cascade Advanced Energy Facility in Washington State.
According to the companies, the Indiana project would combine AEP’s power generation and nuclear operating expertise, X-energy’s advanced reactor technology and Amazon’s financial support and long-term electricity demand.
Proposed Indiana nuclear project to redevelop former coal plant site
The project would repurpose the former Breed Generating Station site in Sullivan County. It will give the retired coal-generation property a potential new role in Indiana’s energy grid.
The proposed 960MW facility would supply electricity to the regional grid. It is planned to support power demand from households, businesses, industrial users and large electricity consumers, including Amazon’s data center operations.
The companies have also structured the project around a development and funding arrangement intended to provide financial safeguards for AEP’s customers and investors. Amazon has also stated that it intends to cover the full costs associated with its electricity requirements.
More than 1000 jobs to be created
The development is also expected to create more than 1,000 construction jobs and over 100 permanent positions once operational, according to Amazon. It could also expand the local tax base, attract investment and support economic activity in Sullivan County.
However, the project remains at the evaluation stage. A final investment decision (FID) has not been announced. And, construction will depend on feasibility findings, regulatory approvals, financing and other development milestones.
X-energy’s Xe-100 reactor technology
The proposed plant would use X-energy’s Xe-100. This is an advanced high-temperature, gas-cooled SMR designed to provide continuous, low-carbon electricity.
Each reactor is designed to generate 80MW of electricity. The Amazon-backed nuclear power plant in Indiana will combine 12 units into three groups of four to achieve a combined capacity of 960MW.
The Xe-100 uses helium as its coolant and tri-structural isotropic (TRISO) fuel. TRISO fuel consists of uranium-based fuel particles surrounded by multiple protective layers of ceramic and carbon materials. It is designed to retain radioactive materials under high-temperature conditions.
The reactor’s design also incorporates passive safety characteristics. These are intended to reduce reliance on active safety systems and operator intervention. Its modular configuration could also allow nuclear generating capacity to be developed in smaller increments compared with conventional large-scale nuclear power stations.
For the Amazon-backed Indiana project, the technology would provide firm generating capacity. This can also complement variable renewable sources such as wind and solar. It is also particularly important as electricity demand rises from data centers, artificial intelligence (AI) infrastructure, industrial expansion and wider electrification.
Nevertheless, the proposed plant will require detailed site assessments, reactor licensing and other regulatory approvals before construction can begin.
The companies have not yet announced a construction start date or commercial operation target for the Indiana nuclear power plant.
Amazon expands nuclear energy investment to support data center growth
Amazon’s participation in the Indiana nuclear power project builds on its strategy to secure carbon-free electricity. This is as demand for cloud computing and AI services increases.
The tech company has also identified nuclear power as a potential source of reliable electricity. This is because nuclear can operate regardless of weather conditions, complementing their other renewable energy investments.
Amazon previously anchored X-energy’s Series C-1 financing round in 2024. It helped support the completion of the company’s reactor design and licensing work and development of its TRISO-X fuel fabrication facility in Oak Ridge, Tennessee.
The Indiana development would add another potential project to its ‘5GW by 2029’ pipeline. Amazon is expected to act as the first electricity purchaser under a long-term agreement. Prospect-wise, this would also help establish a revenue framework for the proposed nuclear power facility if it advances to operation.
AEP to assess project feasibility and grid integration
AEP plans to work with X-energy and Amazon to evaluate the project’s technical and commercial viability. This will include site development, licensing requirements, infrastructure needs and connection of the nuclear plant to the electricity grid.
The development process will involve obtaining the necessary Nuclear Regulatory Commission (NRC) licenses, environmental and regulatory approvals. Property rights and grid interconnection approvals through PJM Interconnection will also be evaluated and sought.
PJM operates the regional wholesale electricity market and coordinates the transmission system across a large portion of the eastern and midwestern United States. The project’s connection and integration requirements will therefore be an important part of determining its feasibility.
AEP and X-energy must also assess project economics. Backed with Amazon’s funding pledge, the utility company will need to secure the necessary financing and reach an FID before construction of the Indiana nuclear power plant can start.
Indiana strengthens its position in advanced nuclear energy
Indiana has been positioning advanced nuclear technology as part of its strategy to meet future electricity demand.
State-level measures introduced since 2025 include investment and manufacturing tax incentives and the Indiana Advanced Nuclear Ready Communities Program. The latter is intended to help communities prepare for potential nuclear energy developments and associated workforce and economic opportunities.
Sullivan County’s participation in the program also provides a local policy framework for evaluating the proposed development. It however does not constitute final project approval.
If realized, the nuclear power plant could provide a substantial source of firm, low-carbon electricity to Indiana. The project would also demonstrate how retired fossil-fuel generation sites could potentially be repurposed for nuclear power facilities.
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