The Resurgence of Nuclear Power in the AI Era
After facing public backlash following high-profile disasters like the Three Mile Island meltdown and Chernobyl explosion, nuclear power is experiencing a revival driven by the surging energy demands of artificial intelligence (AI) and data centers. Top cloud service providers (CSPs) are turning to small modular reactors (SMRs) as a solution to their increasing power needs.
The global market for SMRs in data centers is projected to reach $278 million by 2033, growing at a CAGR of 48.72%, according to Research and Markets. This growth is driven by the need for energy security and sustainability as data centers continue to consume vast amounts of power – currently accounting for 2-3% of total U.S. power consumption, and expected to reach 9% by 2030.
The rapid advancement of AI is exacerbating the strain on the power grid. A Goldman Sachs report predicts a 160% increase in data center power consumption by 2030, with some large data centers already consuming 100 megawatts – equivalent to powering 80,000 homes for an hour. Entrepreneur Elon Musk’s recent AI cluster, comprising 100,000 Nvidia graphics processing units, consumes 100 megawatts alone.
To address these challenges, major CSPs are exploring nuclear power as a clean and reliable energy source. Microsoft, Google, Amazon Web Services (AWS), and Oracle are among the leaders investing in SMR technology.
Major CSPs Embracing Nuclear Power
- Microsoft: Partnered with Constellation Energy to restart the decommissioned Three Mile Island nuclear reactor, with a planned restart in 2028.
- Google: Collaborated with Kairos Power to fund up to seven SMRs, with the first planned for 2030.
- AWS: Engaged in multiple projects, including a $650 million data center campus near a nuclear power plant in Pennsylvania and partnerships with Dominion Energy and X-Energy for SMR development.
- Oracle: Plans to construct three SMRs to power its future data centers, though details remain scarce.
Emerging Players in SMR Technology
Several companies are at the forefront of SMR development:
- Constellation Energy: Operates the largest fleet of nuclear reactors in the U.S. and is a leading clean energy provider.
- Oklo: A startup backed by Sam Altman, planning to build SMRs for data centers in rural areas.
- TerraPower: Founded by Bill Gates, developing sodium-cooled fast reactors for flexible, carbon-free electricity.
- NuScale: Creates small modular reactors using light water reactor technology, suitable for data center applications.
- Last Energy, Deep Atomic, Valar Atomics, and Newcleo: Innovative startups offering unique approaches to SMR technology.
As AI continues to advance and data center energy demands grow, nuclear power is poised to play a crucial role in meeting these needs sustainably and reliably.
