X-energy, Amazon and AEP Sign Agreement to Develop 960 MW SMR Project in Indiana

Advanced nuclear developer X-energy (Nasdaq: XE), utility giant American Electric Power (AEP), and technology leader Amazon announced on October 19, 2026, that they have signed a Joint Development Agreement (JDA) to advance feasibility work for a proposed 960 MW Xe-100 Small Modular Reactor (SMR) project in Sullivan County, Indiana.

The project plans to redevelop the brownfield site of the retired Breed Generating Station. Under the agreement, Amazon will provide milestone-based project development funding. This marks the second commercial deployment under the collaboration between X-energy and Amazon, which aims to bring at least 5 GW of new Xe-100 nuclear capacity to the U.S. grid by 2039. The first project in this partnership is the Energy Northwest Cascade Advanced Energy Facility in Washington State.

The Xe-100 is an 80 MWe high-temperature gas-cooled reactor using helium coolant and Tri-structural Isotropic (TRISO) fuel. The U.S. Department of Energy describes TRISO as the "most robust nuclear fuel on earth" due to its ability to withstand extreme temperatures without melting. This intrinsic safety profile allows for a compact footprint, enabling generation to be sited closer to demand points and minimizing environmental disruption.

For readers tracking AI infrastructure investment, the core significance lies in hyperscalers transitioning from passive electricity buyers to early-stage capital providers in nuclear development. As AI data centers drive surging demand for baseload power, traditional grid expansion rates struggle to keep pace. Direct investment in dedicated nuclear capacity has become a key strategy for ensuring long-term supply security. Although currently at the feasibility stage and subject to rigorous Nuclear Regulatory Commission (NRC) approval, the agreement clarifies the flow of capital and the project pathway, demonstrating concrete industry action against energy bottlenecks.