In a strategic shift blending sustainability with technological ambition, Silicon Valley is embracing nuclear energy, particularly small modular reactors (SMRs), as a cornerstone to power artificial intelligence (AI) advancements. As AI computing demands surge, industry leaders argue that nuclear energy is the key to meeting their green transition goals while sustaining operations of energy-intensive data centers.
From tech giants like Google, Microsoft, and Amazon to emerging nuclear startups, investments in advanced nuclear technology underscore a growing belief that this clean, carbon-free power source is vital to a sustainable AI future. However, the integration of nuclear power comes with its own set of opportunities, challenges, and controversies.
The proliferation of AI applications—from large language models to autonomous vehicles—has skyrocketed energy consumption in recent years. Data centers, the backbone of AI and cloud computing, require stable, round-the-clock power to process and store immense amounts of data. By 2050, these centers are expected to account for 8% of global power demand, up from around 1-2% today, according to energy analysts.
This rising demand places unprecedented pressure on energy systems worldwide. While renewable sources like solar and wind are growing rapidly, their intermittent nature presents challenges for industries that need continuous power. This is where nuclear energy, particularly SMRs, emerges as a promising solution.
SMRs are advanced nuclear reactors with a generating capacity of about one-third of traditional nuclear power plants. Designed to be compact, efficient, and versatile, SMRs can be mass-produced in factories and transported to their installation sites, making them more cost-effective and scalable than conventional reactors
Size and Modularity: Their smaller footprint allows easier integration into industrial facilities and remote areas.
Efficiency: SMRs are up to 8% more efficient than traditional reactors, according to experts like David Brown, Director of the Energy Transition Practice at Wood Mackenzie.
Safety Advances: Modern designs incorporate passive safety systems that reduce the risk of catastrophic failure.
“The efficiency gain is exactly what the world needs to meet sustainability goals and realize a net-zero trajectory,” said Brown. “That’s an important shift for the sector, especially in discussions with governments and potential offtakers.”
Tech Giants Lead the Nuclear Charge
Silicon Valley’s tech titans are leading the charge to integrate SMRs into their operations:
- Google: Pioneering the SMR Path
Google, a subsidiary of Alphabet, signed a landmark agreement with nuclear startup Kairos Power in 2022 to develop a fleet of SMRs. Dubbed a “world’s first,” the deal involves six or seven reactors, with the first operational by 2030. Google aims to use these reactors to power its energy-hungry data centers, touting nuclear as “a clean, round-the-clock power source.” - Microsoft: A Historic Revival
Microsoft has ventured into nuclear energy with a unique approach. In September 2023, the tech giant announced a deal to restart a unit of the Three Mile Island nuclear plant in Pennsylvania—site of the most serious nuclear accident in U.S. history. This move signals both confidence in nuclear energy’s future and a willingness to confront the stigma of past disasters. - Amazon: Going Nuclear for Data Centers
In March, Amazon acquired a data center in Pennsylvania powered entirely by nuclear energy. The company has indicated that such investments are part of its strategy to meet aggressive climate targets while ensuring the reliability of its operations. - Meta: Challenges and Setbacks
Meta, the parent company of Facebook, has also shown interest in nuclear power. Plans to build an AI center powered by nuclear energy were stymied earlier this month due to environmental concerns over a rare species of bee inhabiting the proposed site. Despite this setback, Meta’s continued interest underscores Silicon Valley’s broader pivot toward nuclear solutions.
Nuclear Energy in the AI Era
- Carbon-Free and Sustainable
Nuclear energy offers a critical advantage over fossil fuels: zero carbon emissions during operation. As industries and governments push for net-zero goals, nuclear energy can provide the stable power needed to complement variable renewables like solar and wind. - Reliable Base Load Power
Unlike renewable energy sources, nuclear reactors can deliver consistent power 24/7. This reliability is essential for data centers that cannot afford downtime, particularly as AI models become more complex and resource-intensive. - Technological Synergy
Advancements in both nuclear technology and AI create opportunities for cross-sector innovation. AI-driven algorithms can optimize reactor performance, while SMRs can support the computational demands of AI research and deployment.
Despite these advantages, nuclear power remains a contentious issue due to historical accidents, safety concerns, and the problem of nuclear waste. Incidents such as the 1986 Chernobyl disaster, the 2011 Fukushima meltdown, and the 1979 partial meltdown at Three Mile Island have left deep scars on public perception.
Diane D’Arrigo, radioactive waste project director at the Nuclear Information and Resource Service, warned that no form of nuclear technology, including SMRs, can fully eliminate the risks of radioactive waste.
“There’s no way—whether it’s an advanced reactor or a small modular reactor—that you can avoid making long-lasting, deadly nuclear waste with every kilowatt-hour of electricity generated,” she said.
The nuclear industry also faces regulatory complexities and environmental challenges. For example, Meta’s halted AI center project highlights how local ecosystems and species can impede nuclear expansion. Moreover, building new nuclear facilities often requires years, if not decades, of planning and construction.
In the United States, nuclear energy enjoys rare bipartisan support. President Joe Biden’s administration has included nuclear in its plans to lower carbon emissions, emphasizing its role in achieving energy security. Meanwhile, president-elect Donald Trump has also endorsed SMRs, signaling continuity in nuclear policy regardless of political shifts.
Globally, countries like the United Kingdom, Canada, and South Korea are investing heavily in SMR development, further bolstering the technology’s prospects.
