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AEP, Amazon and X-energy are exploring 960 megawatts of small reactors at a retired Indiana coal plant

American Electric Power, Amazon and X-energy announced on Oct. 19 that they are exploring a 960-megawatt advanced nuclear project at the former Breed Generating Station coal plant site in Sullivan County, Indiana. The initial design calls for 12 X-energy Xe-100 small modular reactors rated at 80 megawatts each. It is a feasibility effort, not a finished deal, and the companies gave no construction or operating dates.

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If the reactors are ever built, Amazon would buy the output under a long-term contract. Indiana Gov. Mike Braun has praised the idea, and the plan arrives as the utility forecasts Indiana peak load rising from 2,800 megawatts to more than 7,000 megawatts by 2030, driven by large new customers such as data centers.

Twelve Xe-100 reactors on a coal plant site

Utility Dive reported that the facility would use 12 Xe-100 small modular reactors, each producing 80 megawatts, on land that was the Breed Generating Station, operated by AEP’s Indiana Michigan Power. AEP’s news release, issued from Columbus, Ohio, adds that the units would be arranged in groups of four and that the companies are evaluating the former Breed site. If built, the plant would be expected to operate for more than 60 years.

X-energy’s own description of the Xe-100 calls it a small modular high-temperature gas-cooled reactor with helium coolant and a graphite core, producing 80 megawatts of electricity per module and 200 megawatts of heat. Fuel is TRISO particle fuel in graphite-matrix pebbles, and a four-unit “four-pack” totals 320 megawatts. Three four-packs make the 960 megawatts in the announcement. The vendor lists a 60-year design life and says the reactor can ramp between 40 percent and full power in about 12 minutes.

Who signed what, and what is still undecided

AEP signed a joint development agreement with X-energy, while Amazon is funding development under a separate funding agreement, the utility said. The current agreements cover only feasibility evaluation, and construction and operation depend on a final investment decision. AEP Chairman, President and CEO Bill Fehrman said the agreements with Amazon and X-energy provide “all necessary capital protections and financial safeguards” that AEP has called essential for any potential nuclear project to move forward.

That framing answers a concern about who carries the risk if costs run over or the project is canceled. Amazon’s Josh Weissman, vice president of data center infrastructure capacity delivery, said the company wants to “develop nearly a gigawatt of carbon-free power for the regional grid,” and the company says it will pay its full costs without passing them to others. Under the proposed contract, Amazon would cover the costs of the facility and its operations for the term of the agreement.

The exploratory label matters, and it separates this announcement from a finished project. Two agreements exist, one between AEP and X-energy and one funding agreement with Amazon, and neither commits the companies to build. The 960-megawatt total is a design target for a facility that has no regulatory approval and no schedule, and every number in the plan, from the 12 reactors to the 80-megawatt rating, describes what would be built if the evaluation succeeds. In plain terms, the companies have agreed to find out whether the project works, and the cost of that work falls to Amazon. Neither Utility Dive’s report nor the AEP release lists a specific nuclear regulatory filing or approval for this project, so licensing, siting review and financing all remain ahead.

Indiana’s demand forecast and Amazon’s nuclear moves

Indiana has been preparing for large loads. Regulators approved large-load interconnection rules in 2025 under a settlement offered by Indiana Michigan Power, Amazon Data Services, Google, Microsoft and other parties, and the regulatory decision cited a utility expectation that Indiana peak load would climb from 2,800 megawatts to more than 7,000 megawatts by 2030. Sullivan County has also joined the state’s Advanced Nuclear Ready Communities Program, run by the Indiana Office of Energy Development, which recognizes communities that have taken measurable steps to welcome advanced nuclear development.

Governor Braun said the project could help strengthen the state’s grid and “position Indiana as a national leader in advanced nuclear energy.” Weissman said the project would create jobs and generate state tax revenue for decades, according to Utility Dive’s paraphrase of his statement.

The Indiana plan follows another Amazon nuclear deal. On Sept. 30, Amazon and Constellation Energy announced a 20-year, 690-megawatt power purchase agreement tied to expanding and improving the Calvert Cliffs plant in Maryland. Amazon says it is working toward net-zero carbon across its operations by 2040, a goal that frames both nuclear agreements as part of its longer-term power planning. The Indiana proposal differs because it is a new-build development agreement at a retired coal site, with no purchase contract yet signed for power from reactors that do not exist.

This article was produced with the assistance of AI and reviewed by Morning Overview editors prior to publication.

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