Amazon is funding a new nuclear plant in Indiana

Amazon has signed an agreement with X-energy and American Electric Power (AEP) to fund a new nuclear facility in Indiana, according to The Verge's report by Jess Weatherbed, published October 19, 2026, at 3:44 PM UTC. The proposed plant would replace the defunct coal-fueled Breed Generating Station in Fairbanks, Sullivan County, and aims to provide up to 960 megawatts of carbon-free energy for the regional power grid and Amazon's data centers.

This piece covers what Amazon, X-energy, and AEP agreed to fund, how the 12 Xe-100 reactors are designed to run, and who would receive the power, the jobs, and the local effects. It is for readers following nuclear plans at Amazon, Meta, Microsoft, and Google to supply AI data centers, and for people in Fairbanks and Sullivan County.

Amazon is funding a new nuclear plant: what actually changed

This Indiana agreement is the second nuclear project that Amazon and X-energy are collaborating on, with American Electric Power as the utility. They would fund a replacement for the defunct coal-fueled Breed Generating Station in Fairbanks, Sullivan County. The aim is up to 960 megawatts of carbon-free energy for the regional power grid and Amazon's data centers. Several years will pass before the facility is complete. A digital rendering from Amazon shows an early view of how the plant would look.

No timeline for construction or operation has been announced, and the terms of the Fairbanks agreement have not been disclosed. Amazon and X-energy's collective goal is to work with regional utilities to deploy more than 5 gigawatts of new nuclear capacity in the US by 2039. In October 2025, Amazon shared an early preview of its first planned nuclear plant, the Cascade Advanced Energy Facility in Washington. Cascade is set to build 12 advanced reactors and create local jobs, with construction not expected until the end of this decade.

Amazon is funding a new nuclear plant: how it works

The Indiana facility is targeting 12 Xe-100 SMRs. The Xe-100 is an advanced but unproven reactor that is still undergoing development and licensing. Those 12 units are the count behind the plan to provide up to 960 megawatts at the defunct Breed Generating Station site in Fairbanks. Amazon has not announced a construction date or an operation date for the plant. Several years will pass before the facility is complete. A digital rendering from Amazon shows the intended look of the station.

Each Xe-100 can be cooled using air, water, or a hybrid solution of both. Amazon says that should allow the reactors to be deployed in water-constrained regions without impacting water demand in local communities. The reactors are proposed for Fairbanks, Sullivan County, on the site of the defunct coal-fueled Breed Generating Station. Amazon's October 2025 preview of the Cascade Advanced Energy Facility in Washington is similarly set to build 12 advanced reactors and create local jobs, and construction there is not expected to start until the end of this decade.

Amazon is funding a new nuclear plant: why it matters now

The electricity is meant for the regional power grid and for Amazon's data centers at the same time. Amazon is one of several tech companies, including Meta, Microsoft, and Google, exploring nuclear projects to power AI data centers. Earlier in October 2026, Amazon outlined commitments in a lengthy blog post that aimed to sway some of the growing negativity around data center projects. Investing in energy grid infrastructure was one of those commitments. The Fairbanks agreement is Amazon's deal, with X-energy and AEP, to fund a nuclear plant alongside that grid commitment.

Many years will pass before anyone, including Amazon, can reap the benefits of these new facilities. Indiana still has no announced timeline for construction or operation, and several years will pass before the facility is complete. Construction at the Cascade Advanced Energy Facility in Washington is not expected to start until the end of this decade. Across the wider effort, Amazon and X-energy are working with regional utilities toward more than 5 gigawatts of new nuclear capacity in the US by 2039.

Amazon is funding a new nuclear plant: who is affected

The proposed site is Fairbanks, in Sullivan County. It would replace the defunct coal-fueled Breed Generating Station with a nuclear facility that still has no construction or operation timeline. Amazon says the project "could" create 1,000 construction jobs and 100 permanent roles. The regional power grid and Amazon's data centers are the users named for up to 960 megawatts of carbon-free energy. American Electric Power is the utility on the agreement. The planned reactors are 12 Xe-100 units, still in development and licensing.

An Xe-100 can be cooled with air, water, or a hybrid of both, which Amazon says should allow deployment in water-constrained regions without impacting water demand in local communities. Indiana is also home to the famously expensive and uncompleted Marble Hill Nuclear Power Plant. It was abandoned half-finished in 1983 after $2.5 billion had already been sunk into it, and it has been under continued demolition since 2008. Terms for Amazon's agreement in Fairbanks have not been disclosed, so the cost of this project cannot be compared with that $2.5 billion.

Amazon is funding a new nuclear plant: what to watch

The Xe-100 still has to finish development and licensing. All 12 units proposed for Fairbanks use that advanced but unproven small modular reactor. No timeline for construction or operation has been announced. Several years will pass before the facility is complete, and many years will pass before anyone, including Amazon, can reap the benefits. Amazon previewed the Cascade Advanced Energy Facility in Washington in October 2025. Cascade is set to build 12 advanced reactors and create local jobs, and construction is not expected to start until the end of this decade.

This Indiana plant is up to 960 megawatts for the regional grid and Amazon's data centers. The Amazon and X-energy effort, working with regional utilities, targets more than 5 gigawatts of new nuclear capacity in the US by 2039. American Electric Power is the utility on the Indiana agreement. Undisclosed Fairbanks terms mean the price cannot be compared with the $2.5 billion sunk into the Marble Hill Nuclear Power Plant before it was abandoned half-finished in 1983. Demolition at Marble Hill has continued since 2008.