Why AI is Going Nuclear?

Nuclear power has long carried a reputation tainted by high-profile disasters, but today, it’s experiencing a renaissance—and artificial intelligence (AI) is the unexpected catalyst driving this resurgence. Major tech companies like Microsoft, Google, and Amazon are now embracing nuclear energy to meet the rising power demands of AI-driven operations while working toward cleaner energy solutions.

Big Tech's Nuclear Investments:

Over the last several months, tech giants have announced ambitious plans involving nuclear energy to power their data centers, which are essential for training and running AI models. Let’s take a closer look at these key investments:

• Google: Partnering with Kairos Power, Google plans to use small modular reactors (SMRs) to power its data centers. The goal is to generate 500 megawatts of carbon-free energy by 2035.
• Microsoft: Microsoft has teamed up with Constellation Energy to restart the dormant Three Mile Island reactor by 2028, producing 835 megawatts of power. Microsoft is also exploring nuclear fusion with Helion Energy and is building a $100 billion AI supercomputer, codenamed Stargate, that will require nearly 5 gigawatts of power.
• Amazon: Announced in October 2024, Amazon has partnered with Energy Northwest and Dominion Energy to develop multiple SMRs, aiming to generate more than 5 gigawatts of nuclear power. The company is also investing $650 million in a Pennsylvania data center powered directly by nuclear energy.

Why Nuclear Power?

AI’s Massive Energy Needs:

AI models, especially large ones like GPT-3 and DeepMind’s systems, require enormous amounts of electricity. For example, training a large AI model can consume 1,000-1,300 MWh—equivalent to the annual energy use of 100 U.S. households. As companies aim to develop more advanced AI, the need for sustainable energy grows.

Nuclear energy provides the reliability that renewable sources, like wind and solar, cannot always guarantee. As Edward Kee, CEO of Nuclear Economics Consulting Group, explained, “Solar doesn’t work at night, and wind doesn’t work when there’s no wind.” Nuclear offers a clean, consistent energy source crucial for running AI infrastructure.

The Rise of Small Modular Reactors (SMRs):

SMRs are a game-changing technology in the nuclear space. These reactors:

• Generate up to 300 MWe, compared to traditional reactors exceeding 1,000 MWe.
• Offer flexibility by allowing modular production in factories instead of on-site assembly.
• Use advanced cooling methods such as molten salt or liquid metal to improve safety and reduce operator intervention.

Tech companies are particularly interested in SMRs because they are easier to deploy and more adaptable to the increasing energy demands of data centers.

Proximity to Data Centers: A Strategic Advantage

Placing nuclear power plants close to data centers offers several advantages. It minimizes the need for costly transmission infrastructure upgrades and ensures reliable, high-capacity power delivery. With AI superclusters demanding hundreds of megawatts, utilities may not be able to supply the necessary power without disrupting existing services. Nuclear energy, located near these AI facilities, solves that problem.

Conclusion: A New Era of AI-Driven Energy Solutions

The renewed interest in nuclear power, fueled by AI’s increasing energy demands, could spark a new wave of investment in sustainable energy. Although the path forward involves regulatory hurdles and economic challenges, the alignment of tech giants with nuclear innovation signals a promising shift. If successful, AI may not only revolutionize industries but also usher in a nuclear energy renaissance—one that provides cleaner, more reliable power for a data-driven future.