Amazon is backing nuclear startup X-Energy to address the massive electricity needs of AI data centers. By investing in Small Modular Reactors (SMRs), cloud providers aim to secure a constant, carbon-free baseload power supply that reduces reliance on intermittent renewables and volatile energy markets. This shift toward corporate-owned or directly procured nuclear energy highlights a trend of vertical integration in the tech sector. While SMRs offer a scalable alternative to traditional plants, the transition faces hurdles including high initial costs, strict regulatory requirements, and long construction timelines.
