Large tech companies have turned to nuclear energy.

Large tech companies are increasingly interested in using nuclear reactors to power their data centers, which are highly electricity-demanding. Amazon and Microsoft have signed significant agreements with nuclear plants in the United States this year. Moreover, both Microsoft and Google have shown interest in next-generation small modular reactors that are still under development. The growing energy demand from new AI-driven data centers has led these companies to move away from their climate goals, as their carbon emissions have increased. The use of nuclear reactors could provide a solution to address both problems.

This shift in focus has revitalized the aging fleet of nuclear reactors in the U.S., while also supporting the development of new nuclear technologies that have yet to prove their viability. According to Mark Morey, a senior electrical analysis advisor at the U.S. Energy Information Administration, "the outlook for this industry is brighter today than it was five or ten years ago."

Most nuclear reactors in the U.S. were built in the 1970s and 1980s. However, the industry has faced resistance following high-profile accidents like the Three Mile Island incident and the Fukushima disaster in Japan. Additionally, building nuclear plants is costly, and compared to gas plants, they are less flexible, as the latter can adapt more quickly to fluctuations in electricity demand. In contrast, nuclear plants typically provide a steady supply of baseload power. This stability makes them an attractive source for data centers, which operate around the clock.

Microsoft has signed an agreement to purchase energy from the Three Mile Island nuclear plant, which was shut down in 2019 due to economic issues. This deal, which aims to reactivate the plant by 2028, marks a significant milestone in Microsoft's efforts to reduce its carbon footprint. Although the plant is temporarily closed, the current push for carbon-free energy sources is bringing the nuclear industry back into the spotlight.

On the other hand, Amazon Web Services has acquired a data center campus powered by the Susquehanna nuclear plant in Pennsylvania. Meanwhile, Google is also exploring the possibility of using nuclear energy for its data centers as part of its sustainability plans. Sundar Pichai, CEO of Google, has indicated that the growing investment in artificial intelligence has increased the need for energy, motivating the search for new solutions such as next-generation modular nuclear reactors, which will not be available until the 2030s.

These advanced reactors are much smaller than their predecessors, allowing them to be easier and more affordable to construct, as well as being more flexible in terms of electricity production. Bill Gates, founder of TerraPower, has expressed his strong belief that nuclear energy can play a key role in addressing climate issues.

Recently, the Department of Energy published a report projecting that nuclear capacity in the U.S. could triple by 2050, driven by increased electricity demand from electric vehicles, data centers, and other industries. This surge in demand is transforming the perception of nuclear energy, which was previously seen as stagnant.

However, the path forward will not be easy. New reactor designs and plans to reopen closed plants still need to navigate regulations and face high costs and delays. Amazon is already encountering resistance in Pennsylvania regarding its nuclear plans, while the industry continues to grapple with criticisms about the impact of uranium mining and the storage of radioactive waste.