As energy demands from artificial intelligence (AI) and data centers surge, big tech’s race toward nuclear power. Recent agreements from Amazon, Google, and Microsoft mark a significant shift, as nuclear energy may help meet growing needs while maintaining environmental pledges. Energywise Solutions is closely watching these developments. This article dives into why Big Tech is embracing nuclear, the potential of small modular reactors (SMRs), and the challenges these companies face as they venture into this new territory.
Table of contents
The Growing Power Demands of Big Tech
Artificial intelligence and cloud computing’s rapid expansion have triggered an explosive increase in power consumption. AI-driven processes, like data analysis and machine learning, require far more electricity than traditional tasks. A single AI query can use up to 10 times the energy of a regular Google search. As a result, power demands from data centers are expected to skyrocket by 160% by 2030, according to Goldman Sachs.
The issue is bigger than tech. Electrifying transportation, reshoring manufacturing, and expanding digital infrastructure are expected to double U.S. electricity demand within a decade. Europe is forecasted to experience a 40% rise in power demand between 2023 and 2033. Faced with these escalating demands, Big Tech companies and firms like Energywise Solutions are hunting for reliable, low-carbon solutions to power operations.
Big Tech’s Race Toward Nuclear Power: Why Big Tech is Turning to Nuclear Power
Achieving Net Zero Commitments
Tech giants have committed to ambitious net-zero carbon goals. While they’ve poured resources into wind and solar, these intermittent energy sources can’t fully meet data centers’ constant, large-scale energy needs. Here’s where nuclear power, particularly SMRs, comes in.
Nuclear energy offers consistent, reliable power. Unlike wind or solar, nuclear generates power 24/7, unaffected by weather. This reliability makes nuclear attractive for tech firms looking to diversify energy portfolios and keep environmental promises. Energywise Solutions has recognized similar energy needs across industries.
Small Modular Reactors: A Game-Changer?
SMRs are key to Big Tech’s nuclear strategy. These reactors typically have a capacity of up to 300 megawatts (MW), far less than conventional nuclear plants, which produce 1,000MW. Their smaller size makes them easier to install near power-hungry facilities like data centers.
SMRs are modular, meaning they can be built in factories and then assembled on-site. This could lower construction costs and shorten project timelines. This flexibility allows companies to deploy reactors as needed, matching growing energy demands.
Amazon has already secured deals in Washington state and Virginia to support four next-gen SMRs and has also taken a stake in X-energy, an SMR developer. Google has followed suit, partnering with Kairos Power. Google will purchase power from SMRs expected to come online by 2030. Microsoft also signed a 20-year agreement with Constellation Energy to restart a reactor at the Three Mile Island nuclear plant in Pennsylvania. The movement toward modular reactors reflects an industry-wide strategy to combine energy reliability with sustainability goals.
Big Tech’s Race Toward Nuclear Power: The Challenges of Nuclear Power Adoption
High Costs and Regulatory Barriers
Despite their promise, SMRs and nuclear power still face hurdles. Building nuclear plants—whether large-scale or modular—demands high capital. Regulatory approval can be slow and expensive. Nuclear energy also carries perceived risks, from safety concerns to radioactive waste disposal.
The approval process for new nuclear designs, including SMRs, can be lengthy due to strict safety regulations. While touted as faster and cheaper to build, SMRs remain largely unproven at commercial scale. The Institute for Energy Economics and Financial Analysis (IEEFA) highlights concerns that SMRs are still “too expensive, too slow, and too risky” based on existing projects.
The Role of Renewables and Energy Diversification
Although nuclear plays an important role, tech companies, including Energywise Solutions, are expected to continue investing in wind and solar projects. Nuclear energy’s benefits must be weighed against its challenges. SMRs could also divert resources from more established renewable technologies like solar and energy storage.
With competition for energy resources rising, regulators may need to ensure Big Tech does not monopolize new energy supplies. One solution could be mandating that clean energy projects designed for data centers also contribute to the larger electricity grid. This approach would provide energy access beyond tech giants.
AI and Energy Efficiency: A Dual Strategy
AI may drive increasing energy needs, but it can also improve energy efficiency. Advanced AI technologies can help optimize energy use across data centers, factories, and grids. By improving grid stability and reducing energy waste, AI could become part of the solution, rather than the problem.
This approach—investing in both clean energy sources like nuclear and efficient energy management systems—could offer a sustainable solution, balancing power consumption with environmental goals.
Conclusion: The Future of Tech and Nuclear Energy
Big Tech’s race toward nuclear power represents a bold attempt to tackle rising energy needs. Small modular reactors provide a reliable, low-carbon option, but significant challenges remain. High costs, regulatory hurdles, and safety concerns complicate nuclear’s role in future energy plans.
As Energywise Solutions knows, the future lies in balancing investments in nuclear, renewables, and energy efficiency technologies. By diversifying their energy portfolios, companies can ensure a stable energy supply while meeting sustainability goals.
As AI-driven energy demands rise, Big Tech and companies like Energywise Solutions will continue investing in clean energy, ensuring sustainable growth in the new age of electricity.
About Energywise Solutions
Energywise Solutions is a family and veteran-owned consulting, services and supply firm that works with architects, engineers, business owners, and contractors to create exceptional spaces with energy-efficient LED lighting solutions, lighting controls and automated building controls. Our network includes trusted U.S. manufacturers of lighting fixtures, lighting controls and wireless control systems. Our team is experienced in designing, start-up and commissioning custom energy solutions and control systems for all buildings.
Scott Van Kerkhove is the CEO of Energywise and writes on topics and issues surrounding the lighting and controls industry, energy management, profitability and sustainability. Find me on LinkedIn – Author: Scott Van Kerkhove
