Big Tech’s Nuclear Ambitions: Powering the AI Revolution with Next-Gen Energy

As artificial intelligence surges, major tech giants like Microsoft, Google, and Amazon are turning to a bold new energy source to meet their massive power needs: nuclear energy. With AI models demanding vast amounts of electricity, these companies invest heavily in advanced nuclear technology to support their growth and address environmental commitments. This move represents a new frontier in tech's relationship with energy, where innovation and sustainability intersect.

Google’s recent deal with Kairos Power marks a significant step in this direction. Announced in October, the agreement involves Google purchasing power from a fleet of small modular reactors (SMRs) that are set to begin operations by 2030. These SMRs are a form of advanced nuclear reactor designed to be safer and more efficient than traditional atomic plants. According to Michael Terrell, Google’s senior director of energy and climate, nuclear power provides “clean, round-the-clock” energy, ideal for keeping data centers operational without the fluctuations seen in solar and wind energy. Terrell highlighted the critical role nuclear power could play in meeting AI’s demands and supporting national economic growth.

Just days after Google’s announcement, Amazon also declared its intent to invest in nuclear power, including an agreement with Northwest Energy to build four SMRs in Washington. Amazon also dedicated $500 million to funding X-energy, a nuclear technology company. Microsoft, meanwhile, has partnered with Constellation Energy to reopen the Three Mile Island nuclear facility, powering its data centers for the next two decades. Once synonymous with the U.S.’s worst nuclear accident in 1979, the Three Mile Island site is set to play a pivotal role in Microsoft’s AI-powered future, a testament to how nuclear energy is being reimagined for modern needs.

The urgency of these investments is driven by the energy-intensive nature of generative AI. With a single ChatGPT inquiry reportedly consuming nearly 10 times the energy of a typical Google search, tech companies face mounting pressure to find reliable, low-carbon energy sources. AI researcher Sasha Luccioni from HuggingFace noted that these companies have been caught off guard by AI’s rapid escalation in energy demand, as Microsoft and Google both missed their net-zero emissions targets for the first time in years.

Nuclear energy represents a promising solution. Its reliability and carbon-free output make it ideal for AI operations, which require 24/7 uptime. Unlike renewable sources such as wind and solar, which depend on storage solutions and face variability, nuclear reactors boast a high capacity factor—able to run at maximum output over 93% of the time. This advantage is particularly relevant as electricity demand is expected to grow by 15-20% in the next decade due to the expansion of data centers, increased electrification, and efforts to restore manufacturing in the U.S.

Energy Secretary Jennifer Granholm recently emphasized that advanced reactors like SMRs are essential for achieving the U.S.’s clean energy targets by 2035. SMRs, which are smaller and more cost effective than traditional reactors, align with tech companies’ energy goals and timelines. With U.S. nuclear capacity expected to grow by 200 gigawatts by 2050, these partnerships signify a new era of collaboration between Big Tech and the nuclear sector.

Despite its promise, nuclear power is not without challenges. From historical accidents like those at Three Mile Island, Chornobyl, and Fukushima, nuclear energy has had a complicated past. However, the latest technological advancements and safety protocols have significantly enhanced its viability. According to Jacopo Buongiorno, director of MIT’s Center for Advanced Nuclear Energy Systems, today’s nuclear plants come equipped with passive safety systems, meaning they can automatically shut down without human intervention if something goes wrong. This added safety measure makes SMRs particularly suitable for tech companies looking to power their AI infrastructure securely.

Environmental imperatives and economic opportunities fuel the renewed interest in nuclear power. The Inflation Reduction Act has introduced tax credits specific to nuclear power production, and a recent bipartisan bill aims to streamline the reactor licensing process, further incentivizing nuclear investments. Valerie Karplus, associate director of Carnegie Mellon University’s Scott Institute for Energy Innovation, notes that Big Tech’s push for nuclear could help “kick off the order books of deployments that are needed to see growth happen” in the sector, paving the way for a more sustainable energy grid.

Big Tech’s commitment to nuclear energy underscores the unprecedented energy demands of artificial intelligence and marks the beginning of a transformative trend. As nuclear reactors, including SMRs, gain traction across tech and other industries, this pivot toward advanced energy solutions could reshape the landscape of both AI and energy.