Amazon and AEP Plan Nuclear Reactors in Indiana
The companies aim to deploy 12 small modular reactors to help meet growing power demand for data centers.
Updated on Oct. 29, 2026 in Data Centers
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Amazon, American Electric Power, and X-energy have entered an agreement to develop 12 small modular reactors at the former Breed Generating Station site in Sullivan County. This project aims to address the rapidly increasing energy needs of regional power grids and data centers.
Why it matters
The collaboration seeks to bridge a significant supply-demand gap, as Indiana Michigan Power projects its peak demand will surge from 2,800 megawatts to over 7,000 megawatts by 2030. Utilizing advanced nuclear technology is intended to provide a stable, high-capacity energy source for data centers.
The plan involves three blocks of four Xe-100 units, with each reactor capable of generating 80 megawatts using high-temperature helium as a coolant. The total capacity across all 12 units will reach 960 megawatts to supplement the regional grid.
The players
Amazon
A multinational technology company that is financing the development of the nuclear reactors to power its growing operations.
American Electric Power
A major energy provider that owns the Breed Generating Station site through its subsidiary Indiana Michigan Power.
X-energy
A company specializing in advanced nuclear reactor technology that is partnering to deploy the modular reactor units.
Indiana Michigan Power
A subsidiary of American Electric Power that manages the utility infrastructure in the region and expects significant demand growth.
The details
Amazon is financing the development work at the site owned by Indiana Michigan Power, a subsidiary of American Electric Power. The initiative is expected to create over 1,000 construction jobs and more than 100 permanent positions for the local community.
Timeline
October 19, 2026: Companies announced the development agreement.
October 28, 2026: AEP CEO discussed project limitations with investors.
2030: The earliest possible date for a final investment decision.
2039: Target year for achieving 5 gigawatts of nuclear capacity nationwide.
The Tech Race
This project follows the pattern set by the U.S. Department of Energy's Small Modular Reactor (SMR) development programs to modernize the electrical grid. It signals a move away from legacy baseload power plants toward modular technology as tech firms aggressively pursue dedicated energy sources.
The deployment of these reactors aims to stabilize energy costs and grid reliability for local residents and businesses facing rising demand. Residents in Sullivan County can anticipate significant job growth as the project prepares for the construction and operational phases.
The takeaway
The pivot toward modular nuclear reactors underscores how major tech companies are becoming central players in energy grid development. Residents and planners should watch for the 2030 final investment decision as a key milestone for the future of local power generation.
Further reading
For more information on the infrastructure supporting local digital growth, visit the Data Centers section.
Source note: This article includes information reported by ECOticias.
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