The comeback of nuclear energy

Nuclear power is experiencing a resurgence, particularly in the tech industry. Major U.S. technology companies are investing billions into both existing and next-generation nuclear power projects. This shift is driven by the need for reliable, emission-free power sources, especially as these companies face rapidly growing energy demands.

The rise of artificial intelligence (AI) is a key factor behind this surge. AI technologies require massive amounts of computational power, which, in turn, drives up electricity consumption. With pressure to meet sustainability goals and reduce carbon emissions, tech giants are turning to nuclear energy as a solution. Nuclear power offers a stable and carbon-neutral energy source, making it an attractive option compared to intermittent renewables like wind and solar.

As tech companies scale up their operations to accommodate AI advancements, their energy needs will continue to skyrocket. Nuclear energy, with its ability to provide large amounts of clean, consistent power, is positioned as a critical component in addressing this growing demand while maintaining environmental commitments.

Three Mile Island, located in Harrisburg, Pennsylvania, remains one of the most notorious names in the history of nuclear energy, particularly for those who lived through the 1970s. In 1979, it was the site of the worst nuclear accident in U.S. history. The incident involved a partial meltdown of the reactor core, which led to a significant release of radioactive gases.

This accident caused widespread fear and mistrust of nuclear power across the country. It marked a turning point in the U.S. nuclear industry, sparking debates over the safety of nuclear energy and tightening regulatory oversight. The emotional and political aftermath led to the halt of new nuclear plant constructions in the U.S. for many years.

Even today, the mention of Three Mile Island can evoke unease and serve as a reminder of the risks associated with nuclear power. However, with the renewed interest in nuclear energy as a clean, reliable source of electricity, the industry is now focused on ensuring such events never happen again, thanks to advanced technology and more stringent safety protocols.

At the same site where the 1979 nuclear accident at Three Mile Island occurred, a reactor is now being restarted after years of being shut down. The restart is being driven by a special client: Microsoft.

Microsoft has made a deal with the plant's owner to provide the power required for its data centers, where massive AI computations are processed. These data centers consume enormous amounts of energy, and Microsoft is turning to nuclear power to meet these growing demands with a clean energy source. As part of the agreement, the plant will be renamed the Crane Clean Energy Center, symbolizing its shift toward a modern and sustainable energy future.

Comeback of nuclear energy

The rapid development and widespread use of AI are emerging as key drivers behind the revival of nuclear energy. AI applications, from text and image generation to advancements in medicine and self-driving cars, are advancing at an incredible pace. However, the computing power required to support these AI systems comes with a significant demand for energy.

AI processes consume far more electricity than traditional online services. For example, a single query to ChatGPT, a popular AI chatbot, uses about ten times more energy than a typical Google search. This massive increase in energy consumption, especially for AI operations, is encouraging major tech companies to seek out clean energy sources, such as nuclear power, to meet their needs sustainably.

According to market researcher IDC, the electricity demand of AI-powered data centers is expected to grow by 45 percent each year in the near future. Goldman Sachs projects an even steeper increase, estimating that by 2030, electricity consumption by AI data centers could rise by 160 percent. Currently, data centers account for about 1 to 2 percent of global electricity usage. By the end of this decade, this figure could climb to 3 or even 4 percent, driven largely by the increasing power needs of AI technologies.

Small modular reactors

As the demand for energy grows due to the rise of AI, major tech companies like Microsoft, Google, and Amazon are investing heavily in emission-free energy sources. Microsoft is restarting a previously inactive nuclear plant to meet this growing need. Meanwhile, Google and Amazon are focusing on the next generation of nuclear technology: Small Modular Reactors (SMRs).

SMRs are smaller than traditional reactors, with about a third of the capacity, and can be built faster and more cheaply. These reactors are designed to be modular, meaning components can be mass-produced and assembled efficiently, even allowing them to be located next to data centers.

SMRs also come with safety improvements. Instead of water, they use molten salt or metal for cooling. In some designs, the nuclear fuel is mixed directly with the cooling salt, reducing the risk of a meltdown and making the technology potentially safer than existing large-scale nuclear plants. This new generation of reactors is still in development, but it represents a promising step toward more sustainable and safer nuclear energy for the power-hungry data centers of the future.

Kairos and X-energy

Small Modular Reactors (SMRs) are gaining interest not only from big tech companies but also from various countries around the world. Google has placed an order for six or seven small molten salt reactors being developed by Kairos Power, a startup based in California. These reactors are designed to be safer and more efficient, and Kairos aims to have its first nuclear power plant operational before 2030. In fact, the company received approval from U.S. authorities last year to start building these plants.

Amazon has also invested in the SMR sector, backing X-Energy, a competitor of Kairos. X-Energy's modular reactors use gas for cooling, offering another approach to SMR technology. Amazon led a $500 million investment round to help bring X-Energy’s reactors closer to reality, with plans to build plants in the U.S., Canada, and the U.K. This widespread interest highlights the global push toward cleaner and more efficient nuclear energy solutions to meet growing energy demands.

Big tech companies have been investing in clean energy for years to make their data centers more climate-friendly, aiming for net zero emissions by 2030. Many of these companies rely on wind and solar energy, with dedicated wind farms and solar parks powering their operations. For example, in the Netherlands, Google has made deals with Shell and Eneco to ensure that its data centers in Eemshaven and Middenmeer run on 90 percent wind energy.

However, there's a challenge: data centers operate 24/7, but wind and solar power are intermittent and don't always generate enough energy. While batteries and other energy storage solutions help, they aren’t enough to meet the growing energy demands driven by AI. As the power needs of AI increase, achieving the 2030 net zero goal with renewable energy alone becomes almost impossible. This is where nuclear energy comes in—offering a powerful, stable, and CO2-free solution to meet these increasing energy demands.

Microsoft founder Bill Gates is a strong advocate for the next generation of nuclear reactors. Through his company, TerraPower, he is investing $1 billion in the construction of a new type of nuclear reactor in Wyoming. This reactor is being built next to a coal-fired power plant that is set to shut down eventually, allowing the existing workforce to transition from fossil fuels to clean energy.

The planned cost for this new reactor is $4 billion. While this is a significant investment, it is much more affordable than traditional nuclear reactors. For comparison, the two most recent conventional reactors cost around $35 billion, making this new model far more cost-effective.

Revival of nuclear power

The surge in interest in nuclear energy by big tech companies aligns with a broader revival of nuclear power. Politicians increasingly view nuclear energy as a practical, emission-free alternative to coal and gas plants, which are currently used to fill gaps in solar and wind energy supply. Despite the relatively recent Fukushima disaster in Japan and ongoing concerns about nuclear waste, nuclear energy is becoming less of a taboo topic.

In the United States, the debate around nuclear power is no longer a contentious issue between Republicans and Democrats. Even President Biden considers nuclear energy essential for a sustainable energy future.

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