Following Oracle, Microsoft, Google, and other companies, Amazon has also announced investments in nuclear power to support the development of small modular reactors (SMRs) in the U.S. To meet the growing demand for data centers and artificial intelligence, these tech giants are seeking new carbon-free energy sources.
Nuclear power has become the new favorite for these giants.
01
Choosing Nuclear Power
Since last year, artificial intelligence (AI) has gained global popularity with applications like ChatGPT. The AI era is underpinned by a strong demand for computing power, which in turn requires vast amounts of energy. Expanding AI’s computing capacity demands large amounts of electricity and generates significant carbon emissions, making this issue increasingly unavoidable. According to foreign research, ChatGPT responds to approximately 200 million requests daily, consuming over 500,000 kWh of electricity—equivalent to the daily usage of 17,000 American households. Furthermore, the International Energy Agency (IEA) reported that if AI is fully integrated, Google’s electricity consumption could increase tenfold. Goldman Sachs forecasts that from 2022 to 2030, U.S. electricity demand will grow by about 2.4%, with 0.9% related to data centers. Tech giants like Microsoft, Google, and Amazon, which lead AI development, are heavily reliant on data centers, and thus require vast amounts of energy.
On September 20, Microsoft announced a 20-year deal to purchase energy from a decommissioned nuclear power plant that will be restarted. This is no ordinary plant—it’s the Three Mile Island plant in Pennsylvania, site of the U.S.’s most severe nuclear accident in 1979 when one of its reactors partially melted down. The move reflects the tech giant’s need to power its expanding AI capabilities, while also raising concerns about the safety of restarting closed nuclear plants—especially as the Three Mile Island plant is not the only one being restarted.
In Michigan, the Palisades Nuclear Plant, with an output of 805 MW, was shut down in May 2022. However, Holtec International, which owns the plant, plans to reopen it, backed by a $1.5 billion conditional loan from the U.S. Department of Energy (DoE) as part of efforts to achieve climate goals. The plant is expected to reopen by the end of 2025.
Amazon has partnered with three companies, though AI wasn’t directly mentioned in the collaboration. These nuclear resources are likely aimed at supporting Amazon’s AI services in the future. Amazon has outlined a plan to meet its growing power demands by investing in small nuclear reactors, such as those from Kairos Power. It plans to work with Dominion Energy to explore installing an SMR near Virginia’s North Anna Nuclear Power Station. Amazon is also investing in reactor developer X-energy and partnering with Energy Northwest to install four X-energy reactors in Washington state.
Google has also announced a contract to purchase energy from several SMRs being developed by nuclear technology company Kairos Power. Google’s senior director of energy and climate, Michael Terrell, stated, “The technology we need to achieve 24/7 clean energy is essential not only for Google but for the world.”
Google aims to have its first SMR operational by 2030 and more by 2035. The reactors are expected to provide 500 MW of power to the grid. According to Google’s annual environmental report, the company consumed over 24 terawatt-hours of electricity last year, equivalent to 1,000,000 MW.
After decades of decline in the 1990s and 2000s, the share of nuclear energy produced by new plants globally is rising again. The U.S., with 94 traditional nuclear plants, accounts for about a fifth of the global total, though few new plants have been built in recent decades. Over 60 nuclear plants are currently under construction worldwide, mainly in China and Russia. In July, the Czech Republic approved a $17 billion nuclear project. Interest in SMRs is also growing as they are cheaper and easier to build. A new nuclear era may be on the horizon.
By the late 2030s, combined statements from these three companies suggest they could be generating over 5,000 MW of power—or possibly more.
02
Nuclear Power: Modular Reactors
The U.S. is developing SMRs, which generate about a third of the power of traditional reactors. Developers claim SMRs are faster to build, more affordable, and can be tailored to specific locations’ needs.
If the Nuclear Regulatory Commission approves their designs and technology succeeds, developers aim to start generating power in the early 2030s.
Former U.S. Assistant Secretary of Nuclear Energy Kathryn Huff noted that without introducing new clean energy into data center construction, the U.S. could face grid collapse, requiring more electricity from non-clean sources.
Nuclear Footprint
Doug True, Chief Nuclear Officer at the Nuclear Energy Institute, an industry trade association, stated that new reactor designs are particularly suitable for industrial applications due to their small footprint and reliable power generation. Some reactors can even provide high-temperature heat on-site.
He said, “It seems well-suited to supporting these facilities and can support many different applications based on the amount of power customers need.”
Both Amazon and Google have committed to renewable energy to address climate change. Google has pledged to reach net-zero emissions by 2030 and operate with carbon-free energy on every grid, every hour, every day. However, the company has made slow progress in reducing emissions, despite matching its electricity consumption with purchases of renewable energy.
The partnership between tech companies and nuclear power firms may be a “match made in heaven.” Big tech companies need power to fuel new AI data centers, and a lack of electricity in the U.S. could slow technological development.
Nuclear power is seen as a climate solution because reactors do not emit greenhouse gases that cause global warming, unlike fossil fuel plants. With electrification and AI on the rise, global demand for electricity is surging.
The IEA predicts that by 2026, total electricity consumption in data centers could exceed 1,000 terawatt-hours, more than double 2022 levels. One terawatt-hour can power 70,000 homes for a year.
Kevin Miller, Amazon Web Services’ VP of Global Data Centers, said, “AI is driving significant increases in the number of data centers and the power required by the grid.” He added, “We view advanced new nuclear capacity as key and indispensable.”
Amazon has stated it will meet all of its electricity consumption with 100% renewable energy by 2030 and has recently achieved this goal as of early 2023. While the company matches its consumption with renewable energy purchases, this doesn’t necessarily mean it’s using renewable energy to power its operations.
According to Amazon’s 2023 sustainability report, its power-related emissions decreased by 11% from 2022 to 2023, but its direct emissions (including fuel for transportation and deliveries) increased by 7%. The company also plans to reach net-zero carbon emissions by 2040.
03
The Future of AI and Nuclear Power
In 2021, after investing $375 million in the nuclear fusion startup Helion Energy, chaired by Sam Altman, Altman said, “Fundamentally, the two limiting commodities in the world today are AI and energy.” Microsoft agreed last year to purchase power from Helion starting in 2028. Altman is also the chairman of Oklo, a company focused on nuclear fission, which generates energy by splitting atoms, as opposed to fusion, which generates energy by merging atomic nuclei.
In 2022, Oklo faced setbacks when the U.S. Nuclear Regulatory Commission rejected its design for the “Aurora” power plant in Idaho, citing insufficient safety information. The U.S. Air Force also withdrew its intent to award a contract for a microreactor pilot project in Alaska.
Oklo’s Aurora power plant, which it plans to build at Idaho National Laboratory, occupies 13,000 square feet and features a 15 MW fission reactor. The plant, supported by Energy Department grants, would recycle nuclear waste into new fuel, using liquid metal instead of water for cooling—a safer design.
For decades, nuclear power’s share in the U.S. energy mix hasn’t significantly expanded. While rare but catastrophic accidents—such as Chernobyl in 1986 and Fukushima in 2011—sparked public opposition, the nuclear industry has slowly moved forward. Even the newest nuclear plants produce waste that remains hazardous for centuries, requiring effective disposal or recycling like what Oklo is testing.
But as the climate crisis worsens, most Americans now support expanding nuclear power—a Pew Research Center survey last year showed this support had risen from 43% in 2020 to 57%. Nuclear power currently provides only 19% of the U.S.’s electricity. The number of commercial reactors in operation has dropped from a peak of 112 in 1990 to 93 today. To meet current green energy goals, as much as 800 gigawatts of new nuclear power may be needed by 2050.
However, no matter how fast demand grows, efforts to expand nuclear power shouldn’t be rushed. We need nuclear energy for a low-carbon future, but with projects historically taking decades to complete, regulatory processes must be orderly. Rushing could lead to serious mistakes.
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