American Electric Power and X-energy have signed a joint development agreement to evaluate an advanced nuclear plant at the former Breed Generating Station, a retired coal site in Sullivan County, Indiana, that belongs to AEP subsidiary Indiana Michigan Power (I&M). Amazon will fund the development work under a separate agreement. AEP announced both deals on Monday, Oct. 19, 2026, describing an initial project of 12 X-energy Xe-100 small modular reactors rated at 80 MW each, for a total of 960 MW.

For now this is a feasibility study, not a construction project. The plant would be built only if the parties reach a final investment decision, the company said, and if it then moves into construction and commercial operation it would be expected to run for more than 60 years.

The deal structure

The joint development agreement covers the engineering and feasibility work between AEP and X-energy. Amazon's role sits in the second agreement: it provides development capital, which X-energy said would be paid out against milestones, POWER reported.

The reactors would be arranged in groups of four. POWER described that as three 320-MW blocks. Amazon also intends to buy the plant's output under a long-term contract that, in AEP's words, would cover "the costs of the facility and its operations for the duration of the contract." That purchase is stated as an intent tied to the plant being built and entering commercial operation; no power purchase agreement has been signed.

What the parties said

"Advanced nuclear energy has the potential to provide dependable power for over half a century," Bill Fehrman, AEP's chairman, president and CEO, said in the announcement. He added that the agreements with Amazon and X-energy provide "all necessary capital protections and financial safeguards" that AEP considers essential for any potential nuclear project to move forward.

Indiana Gov. Mike Braun said in the same release that "Indiana is building an energy future that prioritizes affordability for Hoosier families and businesses while driving economic growth."

Josh Weissman, Amazon's vice president of data center infrastructure capacity delivery, framed the project around cost allocation. "Together, we're looking to develop nearly a gigawatt of carbon-free power for the regional grid and pay our full costs without passing them to others," he said. Amazon linked the project to its participation in the White House Ratepayer Protection Pledge, under which it committed to paying the full electricity costs of serving its data centers, according to POWER. X-energy CEO J. Clay Sell is also quoted in the release.

Why Sullivan County, and why I&M

Sullivan County recently joined the Indiana Advanced Nuclear Ready Communities Program, run by the state's Office of Energy Development, which supports the possibility of an advanced nuclear project there. AEP also brings nuclear operating experience: I&M runs the 2,278-MW Donald C. Cook nuclear plant in Michigan, POWER noted.

The study comes as I&M plans for steep load growth. Indiana regulators approved large-load interconnection rules in 2025 after accepting a settlement offered by I&M, Amazon Data Services, Google, Microsoft and other parties, and I&M expects its Indiana peak load to climb from 2,800 MW to more than 7,000 MW by 2030, Utility Dive reported, citing the commission's decision. Fehrman said the development plan is meant to "help meet unprecedented growth in energy demand with reliable baseload power while protecting affordability for existing customers."

Amazon's widening nuclear bet

The Indiana study is the second project under Amazon's collaboration with X-energy, which targets more than 5 GW of new U.S. nuclear capacity by 2039. The first is Energy Northwest's Cascade Advanced Energy Facility in Washington state, which POWER said also envisions 12 Xe-100 reactors totaling 960 MW, starting with a 320-MW, four-reactor block; Amazon funded initial feasibility work there and secured rights to buy electricity from that first block. Amazon is also buying from existing reactors: on Sept. 30 it announced a 20-year, 690-MW power purchase agreement with Constellation Energy tied to the Calvert Cliffs nuclear plant in Maryland, Utility Dive reported.

What Happens Next

No hearing, regulatory filing or construction milestone has been scheduled for the Breed site, and the companies have not given a timeline. Before a plant could be built, the record shows three steps remain: a final investment decision by the parties, a signed long-term power contract with Amazon in place of the stated intent, and a Nuclear Regulatory Commission license under a pathway the companies have yet to name.

Sources