Recent developments suggest that Amazon.com, Inc. AMZN may be ramping up its interest in nuclear energy to fuel its growing needs.
The tech giant has reposted a job opening for a Principal Nuclear Engineer in its Data Center Engineering division, raising questions about its long-term energy strategy.
Nano Nuclear Energy Inc. NNE, an emerging microreactor technology company, cited the opening in a social media post on X, formerly Twitter.
Why This Is Important: The opening by Amazon comes shortly after Talen Energy agreed to sell a 960-megawatt data center campus to Amazon Web Services (AWS) for $650 million earlier this year, which includes a decade-long electricity supply agreement from the Susquehanna nuclear power station.
This particularly highlights Amazon’s commitment to clean, carbon-free energy sources.
An Amazon spokesperson told the American Nuclear Society, “To supplement our wind and solar energy projects, which depend on weather conditions to generate energy, we’re also exploring new innovations and technologies and investing in other sources of clean, carbon-free energy. This agreement with Talen Energy for carbon-free energy is one project in that effort.”
In a report released on July 10, Amazon announced that it has achieved its goal of sourcing 100% of the electricity used across its global operations — including data centers, corporate offices, grocery stores, and fulfillment centers — from renewable energy, a target initially set for 2030. The company plans to continue investing in solar and wind projects while exploring nuclear power and battery storage to sustain its energy needs.
Why The Nuclear-Energy Interest May Be Controversial
Amazon’s nuclear ambitions are not without controversy.
Following the agreement with Talen Energy, utility companies American Electric Power Company, Inc. AEP and Exelon Corporation EXC formally objected to the Federal Energy Regulatory Commission (FERC), claiming that the electricity arrangement allows Amazon to benefit from the power grid without contributing to its maintenance costs, a report by the American Nuclear Society suggests.
They argue this could lead to increased expenses for other PJM ratepayers, as the data center’s power usage is indirectly linked to the grid’s resources. PJM ratepayers are customers of the Pennsylvania-New Jersey-Maryland Interconnection (PJM).
That’s not all!
A March report by Heat Map suggests that a divide has emerged among tech giants regarding energy strategies, with Amazon focusing on securing low-cost power without prioritizing new carbon-free sources, while Alphabet Inc. GOOG GOOGL and Microsoft Corporation MSFT aim for comprehensive carbon-free energy solutions.
Microsoft and Google have shown increased interest in nuclear power to ensure a stable electricity supply, reflecting a broader commitment to sustainable energy practices.
As Amazon moves forward with its nuclear initiatives, the intersection of innovation and regulatory scrutiny will play a crucial role in shaping its energy strategy.
The company’s hiring of nuclear engineers underscores its serious intentions in this space, but the implications of these decisions could significantly affect its relationships within the energy sector.
Will Amazon’s foray into nuclear power pave the way for a more sustainable future, or complicate its standing in an already complex energy landscape?
According to Benzinga Pro, AMZN stock has gained over 48% in the past year. Investors can gain exposure to the stock via ProShares Online Retail ETF ONLN and Fidelity MSCI Consumer Discretionary Index ETF FDIS.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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