Powering the AI Revolution: Why Google and Microsoft Are Betting Big on Nuclear Energy

The recent decisions by Google and Microsoft to invest in nuclear energy represent a significant moment for both the tech industry and the energy sector. These moves are not just about securing power for their vast data centers, but also signal a broader revival of nuclear energy as part of the global decarbonization effort. Here’s a detailed breakdown of their rationales and what this means for the future of nuclear energy.

Google and Kairos Power’s Small Modular Reactors

Google’s decision to partner with Kairos Power revolves around deploying small modular reactors (SMRs), which are compact nuclear reactors designed for flexibility and enhanced safety. Kairos Power's reactors will use an innovative cooling system based on molten salt, an advanced technology that offers benefits like improved safety and efficiency compared to traditional water-cooled reactors. By targeting 2030 for the first operational reactor, Kairos is pushing the boundaries of nuclear innovation. The partnership with Google is particularly notable because it shows the tech giant's commitment to diversifying its clean energy sources to power its ever-growing data centers, especially as AI models demand unprecedented computational power.

Google's interest in nuclear power, particularly through advanced SMRs, comes from the need for a reliable and constant power supply. While renewables like wind and solar are essential for the future, they are not always available around the clock, making nuclear an appealing solution. The steady output from nuclear energy provides a balance to intermittent renewable sources, thus complementing Google's broader clean energy strategy

(SiliconANGLE).

Microsoft and Three Mile Island Revival

Microsoft’s deal to revive the Three Mile Island nuclear plant in Pennsylvania highlights a different approach to nuclear energy. The plant, infamous for a 1979 accident, was shuttered in 2019 due to economic pressures rather than safety concerns. Now, Microsoft, in partnership with Constellation Energy, plans to restart the facility by 2028. This decision is driven by Microsoft’s enormous power requirements for its AI data centers, as the energy demand for generative AI models continues to soar. A single query to an AI model like ChatGPT, for instance, requires significantly more power than a standard Google search

(Popular Science).

This deal marks the first time a single company will purchase the entirety of a nuclear plant's energy output, showcasing how tech companies are moving beyond conventional power purchase agreements to directly source their energy needs. For Microsoft, this is part of its broader commitment to becoming carbon-negative by 2030, a goal that can be jeopardized by the rising demand for electricity driven by AI. Like Google, Microsoft recognizes that while renewable energy is important, it cannot meet the full energy demands of modern AI-driven technologies without assistance from baseload sources like nuclear

(POLITICO) (Popular Science).

Implications for Nuclear Power and the Energy Business

These moves by Google and Microsoft suggest a shift in the fortunes of nuclear power. For years, the nuclear industry has faced public opposition, regulatory hurdles, and high costs. However, the explosion in energy demand from AI and data centers is reshaping the conversation. Nuclear offers a clean, carbon-free alternative that can run continuously, unlike wind or solar, which are dependent on weather conditions.

Moreover, the resurgence of interest in nuclear is backed by improving public sentiment, with increasing support for nuclear energy as a reliable part of the clean energy mix. In states like Pennsylvania, where Three Mile Island is located, public opinion has shifted, and tech-driven investment is catalyzing change (Popular Science).

In contrast, small modular reactors (SMRs), like those backed by Google, represent the cutting edge of nuclear technology. If successful, they could be a game changer by providing flexible, safe, and scalable nuclear power with less upfront capital investment than traditional large reactors.

This nuclear revival also signals a broader shift in energy markets, especially as tech companies become direct buyers and influencers of energy infrastructure. The demand for uninterrupted, carbon-free power is pushing tech firms to rethink traditional energy procurement strategies, leading to deep investments in nuclear technology. These companies are effectively becoming key players in driving the next phase of energy development.

Why Nuclear over Renewables?

While tech companies continue to invest heavily in renewables, nuclear energy offers unique advantages that are hard to match with wind or solar alone. First, nuclear provides a consistent, stable power supply, critical for running data centers 24/7. Renewables, though cheaper in many cases, are intermittent by nature, and large-scale battery storage systems—needed to store excess renewable energy—are still in the early stages of widespread adoption.

Additionally, as data centers proliferate to meet the demands of AI, tech companies cannot afford disruptions in power that might arise from relying solely on renewable sources. Nuclear fills that gap, offering a long-term, reliable solution that aligns with their goals of decarbonizing operations. This reliability, paired with the growing capacity needs driven by AI, makes nuclear an attractive option for tech companies looking to hedge against energy shortfalls while maintaining their environmental commitments (SiliconANGLE)

The investments by Google and Microsoft into nuclear energy signal not only a revival of the nuclear industry but also a transformation in how the tech sector approaches energy procurement. As data centers continue to expand and AI pushes the boundaries of energy consumption, nuclear power, both through traditional plants and new technologies like SMRs, will likely play a critical role in securing a clean, reliable energy future. This shift highlights the increasing influence of tech giants on the energy market and marks the beginning of what could be a new era for nuclear power.