Amazon, American Electric Power (AEP) and X-energy have signed a joint development agreement to evaluate building a 960-megawatt nuclear power plant in Indiana. The proposed plant would be built at a former AEP-owned coal plant site and use 12 of X-energy’s Xe-100 small modular reactors (SMRs) to generate carbon-free baseload power.

Amazon is funding the project’s development and plans to buy its electricity under a long-term contract to power data centers. The project would also support Amazon’s goal of reaching net-zero carbon emissions by 2040.

This is the second major nuclear project under Amazon and X-energy’s collaboration, which aims to address rising energy demand from electrification and artificial intelligence.