The nuclear power industry is experiencing a revitalization thanks to a growing demand for low-carbon energy sources driven by big tech companies. Reactor one at the Three Mile Island nuclear power station in Pennsylvania, which has been dormant for five years, is set to resume operations in 2028 through a deal with Microsoft to supply the tech giant with low-carbon electricity. This move is part of a larger trend where technology companies are looking to nuclear power to meet the increasing energy needs of data centers and industrial facilities.
The surge in electricity demand from AI, data centers, and other high-tech applications has created a unique opportunity for the nuclear power industry. The International Energy Agency predicts that electricity demand from these sectors could more than double by 2026, equivalent to the total electricity consumption of a country like Sweden or Germany. This increased demand is driving the interest of technology companies in nuclear power as a reliable and low-carbon energy source.
John Kotek, senior vice president for policy development and public affairs at the Nuclear Energy Institute, highlights the national security implications of ensuring an adequate power supply to support the growth of AI technologies. The US is in a global competition where falling behind in the AI race due to inadequate power supply could have serious consequences. Nuclear power stands out as a reliable and continuous source of low-carbon electricity compared to intermittent renewable sources like solar and wind.
In addition to reactivating dormant reactors like reactor one at Three Mile Island, there is also a push to extend the operating licenses of existing nuclear power plants to meet the growing energy demand. Government incentives such as tax credits for low-carbon energy production are encouraging power plant operators to keep nuclear power online. However, building new reactors may be necessary to capture the full potential of the projected energy demand driven by AI and data centers.
The interest of technology companies like Microsoft in small modular nuclear reactors is a sign of the industry’s shift towards more efficient and cost-effective nuclear power solutions. While there are challenges in improving the energy efficiency of AI operations, regulatory measures and transparency in reporting could incentivize companies to prioritize energy-efficient practices. The focus on enhancing the consumption side of AI’s energy usage could lead to more sustainable energy practices in the future.
As the energy demands of AI continue to rise, there is a growing need for renewable and low-carbon energy sources to keep pace with this trend. The collaboration between technology companies and the nuclear power industry represents a unique opportunity to meet this demand while addressing climate change concerns. By leveraging nuclear power as a reliable and low-carbon energy source, the AI revolution can continue to thrive in a sustainable manner.
