Amazon is funding development of a 960-megawatt nuclear plant in Indiana, with 12 Xe-100 small modular reactors to be built on the site of a demolished coal plant. The joint development agreement, announced on October 19, 2026, also involves utility American Electric Power (AEP) and reactor designer X-energy.
The site is the former Breed Generating Station in Sullivan County, just south of Terre Haute. The twelve reactors would be arranged in three groups of four, with each unit producing roughly 80 megawatts of electricity. AEP would operate the plant, X-energy would supply the technology, and Amazon would provide development capital and serve as the first customer to purchase the power.
The financial mechanism is clearly defined. Amazon pays funds in stages tied to the achievement of milestones, then buys the output under a long-term contract designed to cover costs and operations. This way, existing AEP customers do not pay for electricity destined for the tech giant. Financial terms were not disclosed. A final decision on starting construction is expected around the end of 2029.
The Xe-100 is a helium-cooled high-temperature reactor. It uses TRISO fuel, designed to withstand extreme temperatures, and relies on passive safety principles. The design also offers several cooling options (air, water or hybrid), an advantage in water-scarce areas.
The deal is the second commercial agreement between Amazon and X-energy and is three times larger than the first, announced two years ago. Amazon is a long-standing investor: in October 2024 it led a $700 million Series C-1 round. X-energy has been publicly listed since April. The two companies aim to build 5 gigawatts of new nuclear capacity in the United States by 2039. Unlike many data center-linked projects, this plant would connect to the public power grid.
Choosing a former coal site has practical reasons. Transmission lines and substations are already in place, the land is zoned for industrial use, and the local community is familiar with power generation. Amazon estimates more than 1,000 construction jobs and over 100 permanent positions once the plant is complete.
Meanwhile, X-energy is advancing its Seadrift project in Texas, with four Xe-100 units serving a chemical plant. The construction permit is in the final stages of review by the Nuclear Regulatory Commission. If that licensing path concludes without hurdles, Indiana could become the model for converting other retired coal plants into modular nuclear hubs.
