Tech Companies Are Racing to Harness Nuclear Power

Source: Felicity Bradstock | · OILPRICE.COM · | August 18, 2024

• Tech companies are investing heavily in nuclear energy to power their AI operations.

• Regulatory challenges and utility opposition are hindering the development of new nuclear projects.

• The growing demand for electricity from data centers is driving the need for clean energy sources.

With the demand for power increasing rapidly, tech companies are looking for innovative solutions to meet the demand created by artificial intelligence (AI) and other new technologies. In addition to solar and wind power, several tech companies are investing in nuclear energy projects to power operations. The clear shift in the public perception of nuclear power has once again put the abundant clean energy source on the table as an option, with the U.S. nuclear energy capacity expected to rise significantly over the coming decades. 

Around one-third of nuclear power plants are the U.S. are in discussions with tech companies to provide electricity for data centers, according to The Wall Street Journal. Several tech majors have already established deals with nuclear energy companies to deliver the clean energy required to power high-energy-demand new technologies, such as AI. 

The global electricity demand is expected to double by 2050, compared to 2020 levels, and there is immense pressure to fill this demand using renewable energy sources. The rapid rise in the use of complex technologies is expected to contribute heavily to this demand increase. The CEO of the U.S. energy firm NextEra Energy, John Ketchum, recently stated that the demand for renewable energy will likely triple over the next seven years, in line with the growing use of AI.