Columbus – – October 19, 2026 -- American Electric Power (AEP) has signed a joint development agreement with X-energy to evaluate a 960-megawatt advanced nuclear project at a former coal plant site in Sullivan County, Indiana, with Amazon funding the development phase and intending to buy the output under a long-term contract.
Amazon would cover facility and operating costs for the length of its contract
Amazon is supporting development through a funding agreement. If the project reaches a final investment decision and proceeds to construction and commercial operation, Amazon plans to purchase the power and cover the costs of the facility and its operations for the contract term. AEP Chairman, President and CEO Bill Fehrman said the agreements with Amazon and X-energy provide the capital protections and financial safeguards AEP has called essential for any nuclear project to proceed.
Josh Weissman, Amazon's VP of Data Center Infrastructure Capacity Delivery, said the company aims to develop nearly a gigawatt of carbon-free power and "pay our full costs without passing them to others." He tied the project to Amazon's goal of net-zero carbon across its operations by 2040.
Twelve Xe-100 reactors of 80 MW each would make up the initial build
The facility would use X-energy's Xe-100 small modular reactor technology. The initial configuration calls for 12 units of 80 MW each, arranged in groups of four, for a total of 960 MW.
The companies are evaluating the former site of Indiana Michigan Power's Breed Generating Station. Sullivan County recently joined the Indiana Advanced Nuclear Ready Communities Program, which supports the opportunity for an advanced nuclear project.
Partners split roles across operations, capital and technology
AEP contributes power generation and nuclear operating expertise, Amazon supplies development capital and a long-term purchase commitment, and X-energy provides the reactor technology. X-energy CEO J. Clay Sell cited AEP's 50 years of nuclear operations experience.
AEP framed the effort as a way to add reliable baseload power amid rising energy demand while protecting affordability for existing Indiana Michigan Power customers and limiting business risk.
Indiana backs the project; jobs and tax base would last more than 60 years
Indiana Governor Mike Braun said the project has the potential to create well-paying jobs in Sullivan County and strengthen the electric grid. If it advances beyond development, the companies expect it to create jobs, expand the local tax base and strengthen Indiana's energy infrastructure for more than 60 years.
The companies said they will work with local leaders, residents, regulators and other stakeholders as the project moves forward. No final investment decision has been made.