Tech giants Amazon, Microsoft, and Google are increasingly turning to nuclear power to meet their data centers’ and AI operations’ growing energy demands. These companies are investing in nuclear energy projects and forming partnerships with nuclear power companies to secure reliable, carbon-free energy sources. AWS recently acquired Talen Energy’s Cumulus Data Assets for $650 million, gaining access to a 960-megawatt nuclear-powered data center in Pennsylvania.
Microsoft and Google have also approached Constellation Energy to explore collaborations on small modular nuclear reactors (SMRs) and secure nuclear power contracts. Nuclear power companies like NuScale, Oklo, Rolls-Royce SMR, Westinghouse Electric, and X-energy are developing smaller reactors to cater to the tech industry’s increasing energy needs. However, many of these projects are still awaiting approval from the Nuclear Regulatory Commission, and operational SMRs are not expected to be up and running before 2030.
The shift towards nuclear power is driven by AI’s energy-intensive nature and the need for sustainable, carbon-free energy sources.
Nuclear shift for tech energy needs
Experts predict that data center energy demand could double within the next few years, outpacing the growth of utility-scale power projects.
However, this trend is not without challenges. Directly connecting data centers to nuclear power plants bypasses the grid, raising energy equity and security concerns. Critics argue that this practice takes capacity off the grid that would otherwise serve all consumers, leading to higher prices and potential shortages.
Moreover, some utilities are opposing these arrangements, claiming they impose additional costs on customers and strain the wider energy market. Regulatory battles, such as the one involving Amazon’s deal with Talen Energy, highlight the complexities of integrating high-energy data centers into the broader energy infrastructure. As the demand for clean energy grows, tech companies are also exploring other innovative solutions, such as hardware efficiency improvements, liquid cooling, and edge computing.
The future of data centers will likely involve a combination of nuclear power and other sustainable energy sources, as well as advancements in smart grid management and distributed AI architectures.
