From Bits to Atoms: How AI is Driving Tech's Nuclear Renaissance

Major tech companies are making significant moves into nuclear energy to power their growing artificial intelligence ambitions and meet their ambitious renewable energy goals. This push is driven by the increasing energy demands of AI technologies and massive data centers.

Recent Nuclear Deals

Google's Agreement

Google announced a "world's first" agreement with Kairos Power to purchase energy from SMRs, with the first reactor set to come online in 2030. This deal is projected to bring 500 megawatts of power to the grid by 2035.

Microsoft's Three Mile Island Deal

Microsoft inked a deal to buy 20 years worth of power from Constellation Energy via the soon-to-be reopened reactor at Three Mile Island, the Pennsylvania facility previously known for its partial meltdown in 1979.

Amazon's Initiatives

Amazon has taken perhaps the boldest steps among tech giants, signing three major nuclear power deals:

1. An agreement with Energy Northwest to develop four small modular reactors (SMRs) in Washington state

2. Participation in a $500 million financing round with X-energy to develop "next-generation SMR reactors and fuel"

3. A partnership with Dominion Energy to explore developing an SMR project in Virginia

Driving Factors

AI and Data Center Energy Demands

The push for nuclear power is primarily driven by the enormous energy requirements of AI technologies and data centers:

• Energy use for data centers in the AI and cryptocurrency sectors is expected to more than double between 2022 and 2026

• One ChatGPT query reportedly uses 10 times as much electricity as a Google search

Climate Commitments

Tech companies are pursuing nuclear energy to meet their ambitious climate goals:

• Amazon aims to be net-zero carbon across operations by 2040

• Google has a goal of reaching net-zero emissions by 2030

Advantages of Nuclear Energy

Nuclear power offers several benefits for tech companies:

• Carbon-free energy source

• Ability to scale and provide consistent power

• Complements intermittent renewable sources like wind and solar

Challenges and Considerations

While the tech giants are optimistic about nuclear energy, some challenges remain:

• SMR technology is still under development, with no reactors currently providing power to the U.S. electric grid

• High expenses of new reactors and potential construction delays

• Ongoing concerns about nuclear waste disposal

Despite these challenges, the tech industry's investment in nuclear energy could be a significant driver in scaling up this technology and potentially reducing costs over time.