Amazon has agreed to pay for development of a proposed 960-megawatt nuclear plant in Indiana and would be its first customer, the company and its partners said on Monday.

The plant would use 12 Xe-100 small modular reactors supplied by X-energy at the site of the retired Breed coal station in Sullivan County, south of Terre Haute. Utility American Electric Power would operate it, and the power would feed the regional grid as well as Amazon's data centres.

No construction or operation timeline has been announced. The partners described the deal as a joint development agreement to test feasibility, and construction would depend on a final investment decision. The proposal also relies on X-energy completing its first Xe-100 plant at a Dow Chemical site in Texas, where work has not started and a construction permit is in the final stage of Nuclear Regulatory Commission review.

Amazon led a $700 million investment round in X-energy in October 2024. The two companies want to bring more than 5 gigawatts of new nuclear capacity to the US grid by 2039. The Indiana plan is their second project, after the Cascade Advanced Energy Facility in Washington state.

Small modular reactors are promoted as a cheaper, faster way to build nuclear power, but the design is not yet proven in commercial operation and recent large US nuclear projects have run badly over budget and behind schedule. Amazon says the Indiana project could create 1,000 construction jobs and 100 permanent roles.