Power
AEP and X-energy evaluate nuclear project in Indiana
American Electric Power and X-energy are assessing a 960-megawatt small modular reactor project at a retired coal site in Indiana, supported by Amazon.
Key points
- AEP and X-energy signed a joint development agreement for a 960-MW nuclear plant.
- The project would use twelve Xe-100 reactors at the retired Breed Generating Station.
- Amazon will provide development funding and intends to purchase the generated electricity.
American Electric Power and X-energy have announced a joint development agreement to evaluate a 960-MW small modular reactor project, according to reporting by POWER Magazine. The proposed facility would be situated at the retired Breed Generating Station in Sullivan County, Indiana, utilizing an AEP-owned brownfield site.
POWER reported that the installation would feature twelve of X-energy's 80-MW Xe-100 high-temperature gas-cooled reactors, configured in three groups. Amazon is participating by providing development funding and plans to sign a long-term power purchase agreement. AEP stated that the commercial arrangement aims to shield existing utility customers from the financial burdens of constructing new nuclear capacity. Bill Fehrman, AEP chairman, president and chief executive officer, noted in the announcement that the safeguards are essential for the project to advance.
What comes next
The initiative forms part of a broader collaboration between Amazon and X-energy to deploy over 5 GW of new nuclear capacity by 2039. The companies previously initiated a similar project in Washington state. AEP would contribute its nuclear operating experience through Indiana Michigan Power, an affiliate that operates the Donald C. Cook Nuclear Plant in Michigan. The project remains at the feasibility stage, and construction will proceed only if the development reaches a final investment decision.
Why it matters
The pursuit of advanced nuclear technology by major technology firms highlights the rising energy demands of data centres and the ongoing search for reliable, carbon-free power sources in industrialised markets. While advanced economies explore small modular reactors to manage grid strain and load growth, developing regions face entirely different power sector constraints. According to World Bank figures from 2024, global electricity use per person stands at 3,708.5 kWh, while global electricity access remains at 91.9 percent. For energy policymakers and investors in Africa, particularly in markets where grid reliability and baseload capacity are critical hurdles, large technology-driven nuclear investments in Western nations underscore the global urgency of securing firm power, even as local regions navigate distinct infrastructure and financing challenges.
Original reporting
This article draws on the following reports. Read them in full on the publishers’ sites.
Context from CEII
Grids decide whether generation becomes power that homes and businesses can rely on. Generation mix, transmission and distribution losses, and tariffs together shape reliability and the case for investment.
91.9% of people worldwide had electricity in 2024Countries in this story
Written by the CEII Desk, the Centre’s automated newsroom, from the reporting credited above and CEII’s own data. Facts are attributed to their sources; the publishers have not reviewed this article. Spotted an error? Tell our editors.
