Tech giants such as Microsoft, Amazon, Google, and Meta are increasingly investing in nuclear power to meet the escalating energy demands of their data centres, driven by advancements in artificial intelligence (AI) and cloud computing. This strategic shift aims to secure reliable, carbon-free electricity, aligning with their sustainability goals and operational requirements.

Rising Energy Demands

The rapid expansion of AI technologies has significantly increased the energy consumption of data centers. Some next-generation facilities are projected to use as much power as one million U.S. households. To address this, companies are turning to nuclear power, which offers a consistent and substantial energy supply without greenhouse gas emissions. (WRVO)

Strategic Investments in Nuclear Energy

  • Microsoft: In September 2024, Microsoft announced an agreement with Constellation Energy to reopen the Three Mile Island nuclear plant, aiming to power its AI data centers with 100% of the plant’s output for 20 years. This move underscores Microsoft’s commitment to securing a stable and sustainable energy source for its operations.
  • Amazon: Amazon Web Services (AWS) has committed $108 billion over the next decade to build 216 new data centres. To offset the increased carbon emissions, Amazon is investing $500 million in small modular reactors (SMRs) to generate emissions-free electricity for its facilities. (EE Power)
  • Google: Google has signed a deal with Kairos Power to bring the company’s first small modular reactor online by 2030, followed by additional deployments through 2035. This initiative is part of Google’s broader strategy to achieve net-zero emissions and support its expanding AI capabilities. (Fox Business)
  • Meta: In December 2024, Meta issued a request for proposals seeking nuclear energy partners to provide 1 to 4 gigawatts of capacity by the early 2030s. This effort aims to support the company’s AI initiatives and data centre operations with reliable, carbon-free energy. (Business Insider)

Advantages of Nuclear Power

Nuclear energy provides a stable and continuous power supply, essential for the uninterrupted operation of data centers. Unlike renewable sources such as solar and wind, nuclear power is not subject to weather variability, offering a dependable energy solution for tech companies’ critical infrastructure.

Industry Perspectives

While these investments highlight a significant shift towards nuclear energy, some experts advise caution. Tech investor Josh Wolfe suggests that announcements from major tech firms may serve more as “greenwashing” to fulfil carbon commitments, and he questions the feasibility of proposed nuclear projects materializing as expected. (MarketWatch)

Conclusion: The commitment of tech giants to nuclear power reflects a strategic response to the growing energy demands of AI and data centre operations. By investing in nuclear energy, companies like Microsoft, Amazon, Google, and Meta aim to ensure a reliable, sustainable, and carbon-free power supply, supporting both their technological advancements and environmental objectives.