Amazon Investing Billions in Carbon-Free Data Centre Power

Amazon has committed more than 40GW of carbon-free energy capacity across over 700 projects globally, as it works to power the rapid expansion of its cloud and AI data centre portfolio.

Ranked by BloombergNEF as one of the world’s leading corporate purchasers of carbon-free energy for the fifth consecutive year, Amazon now holds the largest such portfolio of any private company. The programme spans 28 countries and includes utility-scale solar and wind, offshore wind, on-site solar, battery storage and an expanding nuclear footprint.

While the company states that the portfolio could power the equivalent of more than 12.1 million US homes, the strategic focus is its own infrastructure – particularly the energy-intensive data centres underpinning Amazon Web Services and AI workloads.

Kara Hurst, Chief Sustainability Officer at Amazon, says the company’s approach extends beyond internal consumption. 

“When companies like Amazon invest in new carbon-free energy projects, we're not just helping to power our own operations,” she explains, “we're adding brand-new sources of carbon-free energy to the power grid that everyone uses – the same grid that powers homes, hospitals, and schools.

“These investments can also help spur the modernisation of the energy infrastructure that communities rely on every day, which helps keep electricity costs stable and affordable for families and businesses.”

Nuclear enters the data centre mix

A significant development in Amazon’s strategy is its investment in nuclear energy, particularly small modular reactors. In Washington state, Amazon has agreed with Energy Northwest to fund the development of four advanced SMRs with an initial capacity of 320MW. The project could later expand to 960MW.

The first units are expected in the early 2030s. In parallel, Amazon has invested US$500m in reactor developer X-Energy, targeting more than 5GW of new nuclear capacity in the US by 2039.

Nuclear offers a potential source of reliable baseload generation to complement intermittent renewables for data centres.

Maria Korsnick, President and CEO of the Nuclear Energy Institute, says: “Nuclear energy is the nation's largest source of clean electricity, providing reliable baseload power essential to meeting our energy goals.

“As electricity demand continues to grow due to AI and data centres, corporate investments in nuclear technologies like small modular reactors are critical to fuelling innovation while reducing emissions.”

Tackling intermittency with storage

Solar and wind represent the largest share of Amazon’s portfolio, but their variable output presents challenges for facilities that operate continuously. To address intermittency, Amazon has deployed 11 utility-scale battery projects and plans further expansion.

At its Baldy Mesa solar installation in California, the company is implementing AI-driven software that analyses up to 33 billion data points annually. The system determines when to store and release electricity based on real-time grid conditions, aiming to smooth supply during peak demand periods.

Integration of digital optimisation and physical storage is intended to enhance reliability while supporting decarbonisation targets for data centres.

Grid investment and community resilience

Amazon’s power strategy also includes partnerships with utilities. In Mississippi, it is working with Entergy to develop 650MW of new renewable capacity and contributing to a US$300m grid reliability programme designed to reduce outage frequency for residential customers by around 50%.

Ray Long, President and CEO of ACORE, says: “Corporate renewable energy procurement has become one of the largest drivers of new carbon-free energy projects in the US.

“Companies like Amazon that commit to long-term power purchase agreements provide the financial certainty that enables developers to build new renewable generation at scale – helping to meet America's growing electricity demands while establishing economies of scale that benefit all communities by adding low-cost carbon-free energy to the grid.”

Driving efficiency inside facilities

Alongside procurement, Amazon reports improvements in operational efficiency. In 2024, it recorded a global Power Usage Effectiveness score of 1.15. On water, it reported a Water Usage Effectiveness figure of 0.15 litres per kilowatt hour, a 17% improvement year-on-year. The company says many of its data centres require water-based cooling for less than 5% of the year.

“Amazon is committed to maximising energy efficiency across our global operations, including our data centre network, electric delivery fleets and hundreds of fulfilment centres,” Kara says.