Big Tech’s Power Demands Drive a Fresh Look at Nuclear Energy by Electricity Providers
The increasing power demands of Big Tech companies have put nuclear power back in the spotlight amongst electricity providers. This resurgence comes as nations worldwide are focused on reducing emissions to combat climate change. The energy needs of the technology sector, including data centers and advancements in artificial intelligence, have grown significantly in recent years. This has led companies and governments to reconsider nuclear power, which was previously unpopular due to its potential hazards.
In the United States, the demand for data centers is rapidly growing, with projections indicating a more than threefold increase to 80 gigawatts by 2030, according to McKinsey. Companies like Constellation Energy are planning to reopen nuclear plants, such as Three Mile Island in Pennsylvania, in partnership with tech giants like Microsoft. Similarly, Oracle and Google are exploring the use of small modular nuclear reactors to power their operations. Amazon has also invested in data centers powered by nuclear energy.
McKinsey analysts highlight that the power sector is playing a crucial role in the advancement of artificial intelligence, with access to reliable power becoming increasingly significant for new data center constructions. As nations strive to achieve “net zero” carbon emissions, nuclear power is expected to play a vital role. Currently, nuclear power accounts for approximately 20% of electricity generation in the US, with forecasts suggesting a potential tripling of nuclear capacity in North America by 2050, as per the International Atomic Energy Agency.
Support from the US government for nuclear power as a cleaner energy source is evident, with new reactors being commissioned, such as at Georgia’s Vogtle nuclear power plant. Various states have repealed moratoriums on nuclear power development, with a renewed focus on reactor construction. This trend has put nuclear technology companies and uranium miners in the spotlight, with NuScale Power, for instance, experiencing significant stock growth as it focuses on small modular reactors.
The surge in demand for nuclear power has also propelled uranium prices to near a 15-year high, benefiting companies like Cameco and NexGen. As the world shifts towards cleaner energy sources, the role of nuclear power in meeting the energy demands of the future is increasingly being recognised and explored by both the tech industry and electricity providers.