Amazon Goes Nuclear on the U.K. to Meet $10B AI Ambitions

Tech titan Amazon (AMZN) has called on the U.K. to build more nuclear power stations to help it and the nation meet AI ambitions.

Data Center Drive

In an interview with the BBC, Matt Garman, chief executive of Amazon Web Services, said it wanted more nuclear to power its £8 billion ($10 billion) data center rollout in the U.K. over the next four years.

Garman said nuclear power was a great solution to power data centers because it is an “excellent source of zero carbon, 24/7 power.”

He added: “We invest ahead. I think the world is going to have to build new technologies. I believe nuclear is a big part of that particularly as we look 10 years out.”

Small modular reactors (SMR) are another option with Amazon already partnering with SMR firms in Washington and Virginia. U.K. manufacturer Rolls-Royce (RYCEY) is developing its own SMR designs in the UK and could be a good partner for Amazon in the future.

Controls and Guardrails

The government told the BBC that modular reactors would play an important role in growing “energy-hungry sectors like AI” and that it was shaking up the planning rules to make it easier to build nuclear power stations across the U.K.

Garman also admitted that he understood why many people were “scared” by the growth of AI. But he does not want to see international regulation of the new technology.

“The technology is moving at such a rate that I don’t believe there’s the knowledge of the folks that are building those regulations are going to be able to keep up,” he said.

However, he did add that it was important to consider controls and “guardrails.”

Is AMZN a Good Stock to Buy Now?

On TipRanks, AMZN has a Strong Buy consensus based on 47 Buy and 1 Hold rating. Its highest price target is $305. AMZN stock’s consensus price target is $240.37 implying an 17.32% upside.

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