Amazon-Backed X-energy Raises $700M for SMRs, Targets AI Data Center Power Needs
X-energy, the US small modular reactor developer backed by Amazon, has secured $700 million in fresh funding to accelerate deployment of next-generation nuclear technology for powering AI data centers.
Key Takeaways
- X-energy raised $700 million, bringing total funding to $1.4 billion in 13 months
- Order backlog exceeds 11 gigawatts from partners including Amazon, Dow and Centrica
- Company targets AI and data center power needs with modular nuclear reactors
The funding round was led by Jane Street and included new investors ARK Invest and Point72, alongside existing strategic backer Amazon. This substantial capital injection highlights growing investor confidence in small modular reactors as a solution to the soaring electricity demands of artificial intelligence and cloud computing.
X-energy will use the proceeds to accelerate final design, licensing and early construction work for its Xe-100 helium-cooled reactor and related fuel fabrication facilities.
Massive Order Backlog Signals Strong Demand
The company currently holds an order backlog exceeding 11 gigawatts, equivalent to approximately 144 Xe-100 SMR units. Major industrial and utility partners include Amazon, Dow and the UK’s Centrica, demonstrating significant market interest in reliable, low-carbon baseload power.
X-energy’s immediate deployment plans include four Xe-100 reactors at Dow’s Seadrift, Texas facility – a project supported by the US Department of Energy – along with separate deployment plans with Centrica in the United Kingdom.
Regulatory Progress and Timeline
The company has applied to the US Nuclear Regulatory Commission for a construction license, with the review proceeding on an 18-month timetable that executives describe as “ahead of schedule.”
Why SMRs Appeal to Tech and Data Centers
As AI workloads scale dramatically, technology companies and data center operators face increasing pressure to secure uninterrupted, carbon-constrained power. Small modular reactors offer several advantages:
- Can be sited closer to demand centers
- Provide predictable power output
- Suitable for long-term power purchase agreements with hyperscale operators
- X-energy’s helium-cooled design and TRISO fuel promise enhanced safety
Market Context and Development Challenges
This funding round is part of a broader trend in nuclear energy financing, with SMR developers raising approximately $1.5 billion across the sector in the past year. However, significant challenges remain including regulatory approvals, supply chain constraints, and construction cost management. The ultimate success of these projects will depend on navigating permitting processes and delivering operational capacity at scale.
