AEP and X-energy Study a 960 MW Nuclear Plant at a Retired Indiana Coal Site, With Amazon Funding Development

AI Energy Demand Data Centers News
Marin Holt
October 19, 2026
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7 minutes read

Planned capacity: 960 MW
Reactors: 12 Xe-100 units of 80 MW each
Site: Retired Breed Generating Station, Sullivan County, Indiana
Amazon nuclear goal: More than 5 GW of new US nuclear by 2039

American Electric Power (AEP) and X-energy signed a joint development agreement on Oct. 19, 2026. It covers a study of a 960 MW nuclear plant in Indiana. The plant would use 12 Xe-100 small modular reactors of 80 MW each. The site under review is AEP land at or near the retired Breed Generating Station, a former coal plant in Sullivan County. Amazon will fund development and intends to buy the electricity under a long-term contract.

The design puts the reactors in three blocks of four, each block 320 MW. AEP says construction starts only if the project reaches a final investment decision (FID). For now, the project is at the feasibility stage. X-energy calls the Amazon money “milestone-based development capital.”

AEP says the agreement would cover the costs of the facility and its operations for the term of the contract. AEP chief executive Bill Fehrman said the agreements “will provide all necessary capital protections and financial safeguards” for the project. Josh Weissman of Amazon said the company would “pay our full costs without passing them to others.”

The Second Amazon and X-energy Site

Amazon and X-energy target more than 5 GW of new US nuclear capacity by 2039. Indiana is their second project. The first is the Cascade Advanced Energy Facility of Energy Northwest in Washington state. Cascade is also planned at up to 960 MW from about 12 reactors. There, Amazon funded feasibility work and holds rights to the first 320 MW block. In Indiana, the stated intent to buy power covers the full 960 MW.

Amazon led the 2024 Series C-1 round of X-energy, which closed at $700 million. X-energy says Indiana is its third announced commercial Xe-100 project in the US and its fourth worldwide. The pipeline totals about 11.5 GW. The first plant has four units at a Dow site on the Texas Gulf Coast. It is in the final phase of Nuclear Regulatory Commission (NRC) review for a construction permit. On the operating side, the AEP unit Indiana Michigan Power runs the 2,278 MW Donald C. Cook Nuclear Plant in Michigan.

What the Announcement Does Not Say

The companies did not disclose the capital cost or the size of the Amazon funding commitment. They did not give the term or the price of the power contract. They did not give the ownership structure. There is no FID date, construction schedule, commercial operation target or NRC licensing path. Amazon says the plant could create more than 1,000 construction jobs and more than 100 permanent roles. Those are company estimates for a plant with no build decision.

Why It Matters

This is the third deal in a week that ties new AEP capacity to the money of a large customer. On Oct. 13, Mainspring Energy agreed to supply AEP up to 1.6 GW of linear generators through 2034. On Oct. 14, AEP announced about $4 billion for a 702 MW Bloom Energy fuel cell development in Wyoming. That plant serves Google under a 20-year agreement (MGRID covered it here).

The nuclear deal makes the same promise as the others. The large customer pays, and existing customers do not. That claim rests on a contract with no public term or price. Nobody outside the three companies can test it yet. The Amazon post adds that AEP plans to lower residential rates by $100 starting in 2027 and freeze them for three years. Investors also price the risk. X-energy was valued at $11.9 billion at its April IPO. DatacenterDynamics puts recent estimates near $4.1 billion.

Critical Perspective

Amazon intends to buy all 960 MW from 12 Xe-100 units. Nobody has published the plant cost, the contract price or the term. TVA has an NRC permit for a 300 MW Clinch River reactor and still no cost or start date. The NuScale plan in Utah did publish a price. Its utility owners cancelled it in 2023 after that target rose to $89 per MWh. If Indiana costs climb before an FID, who pays for study work the Amazon money does not cover?