Big tech companies are betting big on nuclear energy to keep their data centers running. With AI driving up energy use worldwide, it makes you wonder—could nuclear energy be the key to tackling the climate crisis caused by AI?
Companies like Google and Microsoft have set ambitious sustainability goals by promising to move to 100% renewable energy before 2030. However, generative AI has made their goals difficult by increasing their electricity consumption multifold. According to Goldman Sachs, a ChatGPT query uses 10 times the amount of electricity compared to a Google Search.
Electricity grids powered by renewable energy can’t keep up with this rapid growth, as building new grids takes seven to nine years, and the supply from renewables is often intermittent, requiring backup from non-renewable sources. This is where nuclear energy offers a compelling solution.
Unlike traditional commercial nuclear power plants, a new wave of technology called small modular reactors (SMRs) is designed to be safer, quicker to construct, and more cost-effective. SMRs are also seen as a way to shift public perception about nuclear energy, marking the beginning of what many call the “nuclear revival.”
Although no SMRs are operational yet, companies anticipate they will go live by the 2030s, positioning nuclear energy as a long-term investment in a sustainable, AI-driven future.
Why are companies investing in nuclear energy?
Tech giants are turning to nuclear energy as they aim to meet their climate goals and reduce reliance on fossil fuels. Achieving these goals requires an energy source that is reliable, consistent, and scalable—and nuclear energy fits the bill.
Here’s why nuclear energy is gaining traction:
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Uninterrupted power supply: Unlike wind or solar, which are prone to disruptions, nuclear reactors provide a steady and reliable power supply—essential for running energy-intensive data centers.
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Minimal land usage: Nuclear power plants require significantly less land than wind or solar farms, reducing environmental disruption.
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Government incentives: Many governments offer subsidies and incentives for renewable energy projects, enhancing the economic feasibility of nuclear investments.
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Climate goals: Shifting from fossil fuels like coal and natural gas to nuclear energy helps companies align with their sustainability targets while reducing greenhouse gas emissions.
What are the downsides?
Despite its advantages, nuclear energy comes with certain challenges and risks. Public perception remains a significant hurdle, shaped by high-profile accidents like those in Fukushima, Chernobyl, and Three Mile Island. Safety concerns and skepticism about nuclear waste management continue to impact public trust.
Additionally, building nuclear power plants requires significant upfront investment. However, this financial barrier is less daunting today, as private companies, rather than taxpayers, are driving much of the funding for these reactors.
Experts argue that robust regulation, advancements in nuclear technology, and improved methods for recycling nuclear byproducts are essential to overcoming these challenges and gaining broader public support.
What’s next for nuclear?
AI and its subsequent energy demand have brought nuclear energy back to the mainstream again, with companies racing against each other to invest in SMRs and nuclear energy startups.
While SMRs are not expected to become operational until the 2030s, there are other strategies to bridge the gap. These include revitalizing older nuclear reactors, accelerating the development of commercial nuclear projects, and ensuring rigorous safety measures to restore public confidence.
As we move forward, nuclear energy has the potential to play a pivotal role—not just in addressing the energy demands of the AI boom but also in securing a sustainable future for the planet.
