You don’t need to be a tech expert to know that the data center industry is growing fast, and the energy demands are growing just as fast. Nuclear power, often-misunderstood and sometimes feared, just might be the source to add to the mix making up a hybrid energy system.
Artificial intelligence (AI), advanced data analytics, cloud computing – they all take power. A lot of it. In fact, data centers could consume up to 9% of the United States’ energy by 2030, more than double of what’s used today.1
That leads one to wonder how that demand can be satisfied while being mindful of clean energy commitments. Data centers need a constant, reliable stream of power to deliver 24/7 uptime. That’s non-negotiable. And powering data center operations requires more energy than renewables like solar or wind can provide on their own.
Figure 1. In 2025, global electricity from nuclear energy will have exceeded its previous record level in 2021.2
If you’ve been paying attention to the tech industry, especially since this summer, you’ve likely noticed that the big players aren’t just tinkering around with their energy commitments to fuel their data centers. They’re diving headfirst into nuclear power.
Google’s partnership with Kairos Power to build a series of small modular reactors (SMRs) is a move that feels like a bet on the future. Its ambitious plan to add 500 megawatts of nuclear-generated power to the grid by 2035 seeks to provide communities, and AI workloads, with clean energy. That’s not just a corporate line on sustainability. It’s a defining business decision.
Amazon’s doing the same thing, investing more than $500 million in nuclear technologies that could reshape how they power their massive web services empire. Announcements for three projects, from Virginia to Washington state, include the development of SMRs through Dominion Energy to bring at least 300 megawatts of power just to the Virginia area alone.
And Microsoft? Perhaps the most striking move in terms of nuclear commitments is its largest-ever power purchase agreement with Constellation Energy to revive the infamous Three Mile Island nuclear plant (you know the one) to secure carbon-free energy for the next 20 years.
These giants are not just hedging their bets. A record amount of nuclear generation is expected to be reached next year and will continue years to come.2 This isn’t just about sustainability. This is about survival. About staying ahead of the game by ensuring that they have a heck of a lot of energy to oversee the incredible demand for their servers to stay online, indefinitely.
Figure 2. Small modular reactors are mini-reactors that are one-third the size of a typical nuclear power plant.4
Nuclear energy development is a dance of science and engineering that harnesses the raw energy from the heart of an atom, splitting it open through a process called fission. Imagine tiny invisible particles smashing together and then fracturing. When this happens, the atoms release an immense amount of heat, enough to boil water and create steam. This steam turns turbines to generate a low-carbon footprint form of electricity.
Here’s the thing – the large nuclear reactors of yesteryear hold a stigma. Past accidents like Fukushima and Chernobyl loom large in the public memory. But modern reactors aren’t ticking time bombs waiting to explode.
Today’s SMRs, as the name implies, are small and modular and can be built in a manufacturing facility, then transported and installed on site. They typically have a power capacity of up to 300 megawatts, about one-third of the capacity of large, traditional nuclear power reactors.3 SMRs use advanced passive safety systems, so they can automatically shut down if something goes wrong. No human intervention is needed.
And even more impressive? They produce significantly less nuclear waste than traditional reactors. By comparison, conventional nuclear power plants must be refueled every one to two years, while SMRs may only require refueling every three to seven years.3 That’s a win for the environment and for companies who can afford the responsibilities of sustainability.
There’s always a catch with new energy technologies. While SMRs may be smaller and more efficient, they still are nuclear reactors. That means there’s the matter of radioactive waste, no matter how little is generated. Then there’s the regulatory maze. The nuclear power industry has a lot of red tape and it’s not going to change overnight. People are still wary. Decades of fear don’t disappear easily. Not to mention the cost. SMRs are expensive and building them is time-intensive.
The stakes are high, and the hurdles – cost, regulation, public perception – are formidable. But if the big tech giants have shown us anything, it’s that they’re willing to take risks not only to stay ahead, but also to disrupt an industry. They’ve done it before and can do it again. Betting on nuclear power just might be the most strategic risk they’ve taken yet.
While nuclear-fueled data centers may not be an option for the vast majority of colocation providers just yet, the recent actions of these tech giants are forging a path toward a carbon-free future for the industry. Nuclear power is poised to be a game changer, but it won’t be an easy transition. One thing is certain: The servers must keep running and, in order to do so, the data center industry might have to embrace the power of the atom.
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References
Data centers could use 9% of US electricity by 2030, research institute says (Reuters)
Nuclear power: A game-changer for data centers in the AI Era (U.S. Global Investors)
Going nuclear: A guide to SMRs and nuclear-powered data centers (Data Center Knowledge)
4 Key benefits for advanced small modular reactors (Office of Nuclear Energy)