X-energy shares rebounded on Monday, ending an eight-session decline that had taken the nuclear developer to a low since its IPO. The company and American Electric Power (AEP) said they will jointly assess the feasibility of developing a small modular reactor project in Indiana, with Amazon providing partial funding for the study. The announcement gives investors a new project milestone in the race to supply nuclear power for artificial-intelligence data centers, but it concerns a feasibility assessment rather than a committed power plant project.
Indiana project remains at feasibility stage
X-energy and AEP will evaluate whether a small modular reactor project can be developed in Indiana. The companies have not disclosed the project’s potential capacity, construction timetable or investment cost, so the announcement does not indicate that the project has been approved or entered the construction phase. Amazon will help fund the study, although no amount was provided.
Small modular reactors remain an emerging technology. Their supporters argue that they could add to U.S. power supply as electricity demand from AI data centers grows. For investors, the key commercial questions include whether the study leads to an actual construction project and how funding and regulatory approvals would be arranged. The information released so far is limited to the feasibility review.
Amazon-X-energy target runs through 2039
The study is the second project under Amazon’s existing collaboration with X-energy. The companies are targeting the addition of 5 gigawatts of nuclear generation capacity in the United States by 2039. Amazon is a major developer of AI data centers and plans to purchase power when the relevant supply becomes available, but the announcement did not say how the Indiana project would count toward that capacity target.
X-energy’s Monday rebound came after eight consecutive sessions of declines and a post-IPO low. Rival Oklo also hit a new low. Their share-price performances have diverged, but the one-day rise does not change the project’s current status as an evaluation. Investors will be watching for the study’s conclusions from X-energy and AEP, as well as clearer details on whether the Amazon-backed effort can move toward a defined construction plan.