AI is changing the world in ways we can’t even imagine. But it has a secret: its enormous appetite for electricity. Last year, AI alone consumed 4% of all electricity in the US, and by the end of the next decade, that number could climb to 9%. With power demand rising, this is a problem we can’t ignore.

Now, if you track this energy consumption, you’ll find one place to blame for this power surge: data centers. Specifically, hyperscale data centers run by tech giants like Microsoft, Google, Amazon, and OpenAI. These companies are the heart of AI, but they’re also responsible for 60-70% of all the energy data centers use.

To understand how this works, imagine a huge room full of computers running 24/7, storing, analyzing, and making decisions. You need serious cooling to keep them from overheating. So technically, it’s like running a room full of ovens that need a lot of fans and air conditioners to make sure nothing catches fire. That’s the kind of power we’re talking about.

But when you combine AI with power, you have two serious problems to address. First, AI is growing at an incredible rate. The US is leading the way, home to half of the world’s data centers (more than 5,000). With cloud computing growing with AI, the energy demand for these data centers is expected to triple by 2030.

Second, emissions. If Big Tech is going to stay ahead in the AI ​​race, they need more data centers, which means more energy consumption. This complicates matters a bit, because they have big promises of reaching net-zero emissions by 2030.

So they’re turning to an unlikely old friend: nuclear power. First, there’s Microsoft, which is working with its partners to reopen nuclear plants and provide a stable power source for its data centers. Then there’s Google, which is striking deals with startups to build small modular reactors. Amazon is also getting in on the action with a massive $500 million investment in nuclear-powered data centers. Obviously, Big Tech companies are investing heavily in nuclear energy.

So why nuclear, you may ask?

It all comes down to reliability. Nuclear reactors, especially fission reactors, are the most important elements of energy production. This is because they produce energy by splitting atoms into smaller pieces, and they can produce significant amounts of energy that can run continuously for years, and unlike solar or wind, which are dependent on the weather, they maintain over 90% capacity. This makes it a reliable option for data centers that need a steady stream of energy 24/7. And when you consider the cost of batteries needed to store renewable energy for those days when it’s not sunny or calm, nuclear energy is cheaper in the long run.

So you can think of nuclear energy as a reliable old car that always works, even on cold mornings. Solar and wind, on the other hand, are like fancy sports cars. They’re great when conditions are perfect, but you can’t always rely on them. This is exactly why nuclear energy seems like a stable, reliable option for tech companies that need constant power.

But if we look back at history, we see a completely different story. Nuclear power hasn’t always had the best reputation. In fact, it’s often seen as a risky choice or one that could pose serious risks and even take lives. The US was once a nuclear powerhouse that led the world in exporting nuclear fuel. But over time, it’s taken a significant step back. The country has gone from mining uranium, a vital resource for fueling nuclear reactors, to being the largest importer domestically.

Fears of nuclear disasters like Chernobyl have also stalled new nuclear projects, with the number of reactors dropping from 112 in 1990 to 94. Today, nuclear energy contributes to about 20% of all electricity in the US. So what’s changed?

Small Modular Reactors (SMRs) are taking over, giving nuclear power a whole new look. These smaller, supposedly safer reactors are not only easier to build, they also come with a number of advantages. Think of them as small, sturdy Lego blocks or components that can be manufactured in a factory and then assembled near where power is needed. This reduces safety risks compared to their larger, more complex predecessors.

That’s why companies like Google are ramping up their efforts to build these reactors to support their AI ambitions. Amazon is making significant investments in Virginia to power its data centers. This renewed focus is fueling significant changes in economies, big companies, and innovation itself.

The excitement over nuclear energy has caused the U.S. nuclear stockpile to skyrocket. Just look at NuScale Power, a company that specializes in SMRs. Its shares have skyrocketed more than fivefold this year. Uranium prices are also reaching 15-year highs, benefiting companies like Cameco and NexGen that mine this important resource.

This may paint a pretty picture, and make nuclear energy seem like the magic bullet that could help Big Tech give their AI dreams more wings while also minimizing climate impact. But let’s be real. It’s not that simple. There are a limited number of nuclear plants that are either dormant or inactive and ready to be turned back, and building new reactors, SMRs or not, comes with its own set of challenges.

There are regulatory hurdles, engineering challenges, and tough public perceptions to overcome. In addition, these new designs may face similarly high costs to get the green light from regulators, especially in a field where safety is a top priority. There’s one more thing you can’t ignore. Investing in SMRs could divert funds away from tried-and-tested options like solar, wind, and battery power systems. On the other hand, SMRs are somewhat unknown because they’re still unproven.

While the risks are high, the potential is game-changing. And it could provide a glimmer of hope for more nuclear breakthroughs rather than repeating past disasters. So yes, maybe nuclear energy can step into the spotlight without the shadow of doom and gloom. Until then, we’ll just have to wait and see.

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