Amazon's Nuclear Deal Signals Big Opportunity for Small Modular Reactors

Amazon recently signed a 20-year deal with Constellation for access to nuclear power. The agreement will direct $3 billion in investment to expand one of Constellation's existing nuclear facilities.

The energy production will be delivered to the grid as usual, rather than exclusively reserving it for Amazon. This makes sense, as investing directly in nuclear power by expanding existing facilities is cost-effective, and more power production regionally helps the company minimize price increases due to rising energy needs.

This deal indicates that AI companies are willing to work with traditional grid operators to scale regional power production, which is good news for NuScale Power. The company aims to build small modular nuclear reactors for utility companies, and Amazon's announcement provides another proof point that this strategy is viable.