American Electric Power announced on Oct. 19, 2026, a joint development agreement with X-energy to evaluate the feasibility of constructing a 960-megawatt advanced nuclear energy project at a former coal plant site in Sullivan County, Indiana.

Amazon is supporting the project's development through a funding agreement.

Project Location and Power Purchase Agreement

The project would be located at the former site of Indiana Michigan Power's Breed Generating Station. If the development effort reaches a final investment decision and proceeds to construction and commercial operation, the completed facility would add electricity to the grid using X-energy's Xe-100 small modular reactor technology.

Amazon intends to purchase the power under a long-term contract, covering the costs of the facility and its operations for the duration of the contract.

The Xe-100 Reactor Configuration

The initial project would include 12 Xe-100 units of 80 MW each, configured in groups of four, for a total of 960 MW.

X-energy describes the Xe-100 as an advanced nuclear technology designed to provide safe, reliable energy in a compact footprint.

Financial Protections for Customers

AEP framed the collaboration as a way to bring reliable power to the grid while prioritizing affordability for Indiana Michigan Power customers and mitigating business risk. AEP chairman, president, and chief executive officer Bill Fehrman said the agreements with Amazon and X-energy "will provide all necessary capital protections and financial safeguards that we have said are essential for any potential nuclear project to move forward."

Fehrman also said advanced nuclear energy "has the potential to provide dependable power for over half a century while supporting economic growth in our communities," adding that the development plan aims to meet "unprecedented growth in energy demand with reliable baseload power while protecting affordability for existing customers."

Josh Weissman, VP of Data Center Infrastructure Capacity Delivery at Amazon, said the company is committed to serving customer needs and achieving its Climate Pledge goal to be net-zero carbon across operations by 2040. "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," Weissman said.

Community and Economic Impact

Sullivan County recently became part of the Indiana Advanced Nuclear Ready Communities Program, which supports the opportunity for an advanced nuclear project. If the project advances beyond the development phase into construction and commercial operation, it is expected to create jobs, expand the local tax base, and strengthen Indiana's energy infrastructure for more than 60 years.

Indiana Governor Mike Braun said the state is "building an energy future that prioritizes affordability for Hoosier families and businesses while driving economic growth." He said the decision by I&M/AEP, Amazon, and X-energy "has the potential to create well-paying jobs in Sullivan County, strengthen our electric grid, and further position Indiana as a national leader in advanced nuclear energy."

The companies are committed to working closely with local leaders, residents, regulators, and other stakeholders as the potential project moves forward.

Each Partner's Role

The collaboration combines AEP's power generation and nuclear operating expertise, Amazon's development capital and long-term power purchase commitment, and X-energy's advanced nuclear technology. J. Clay Sell, CEO of X-energy, said the effort "pairs AEP's 50 years of excellence in nuclear operations with the world-class expertise of Amazon to chart a new course for Indiana's energy future, powered by our Xe-100 small modular reactor."

The announcement comes as AEP, headquartered in Columbus, Ohio, plans to invest USD 78 billion from 2026 through 2030 to enhance service for customers and support growing community energy needs. AEP's nearly 18,000 employees operate the nation's largest electric transmission system with 40,000 line miles, along with more than 252,000 miles of distribution lines serving 5.6 million customers in 11 states.

The company owns approximately 33,000 megawatts of diverse owned and contracted generating capacity. No timeline for a final investment decision was provided in the announcement, and the project remains in the feasibility evaluation stage.

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