The artificial intelligence revolution is creating an unprecedented energy challenge, forcing tech giants to look beyond traditional power sources to fuel their growing ambitions.
Microsoft, Google, and Amazon have all announced significant nuclear energy partnerships over the past year, marking a strategic pivot to address both the enormous power requirements of AI data centers and their climate commitments. These deals include reviving dormant facilities, investing in next-generation reactors, and developing small modular reactors (SMRs) that promise more flexible deployment.
Microsoft's agreement with Constellation Energy to restart the Unit 1 reactor at Three Mile Island stands as one of the most notable partnerships. The 20-year power purchase agreement will add more than 800 megawatts of carbon-free electricity to the grid when the facility comes online in 2028. Meanwhile, Google has contracted with Kairos Power to develop multiple small modular reactors expected to deliver 500 megawatts of power by 2030, with additional capacity planned through 2035.
Not to be outdone, Amazon has signed agreements with Energy Northwest, X-energy, and Dominion Energy to support nuclear projects that could eventually provide gigawatts of power. The company also purchased a data center adjacent to the Susquehanna nuclear plant in Pennsylvania, securing direct access to carbon-free electricity.
The urgency behind these partnerships is clear: data center electricity consumption is projected to more than double by 2030, potentially reaching 9% of total U.S. electricity demand. According to Goldman Sachs Research, 85-90 gigawatts of new nuclear capacity would be needed to meet all data center power demand growth expected by 2030, though less than 10% will likely be available globally by that time.
While these nuclear partnerships offer a path to reliable, carbon-free energy, challenges remain. New reactors face lengthy development timelines, with most projects not expected to come online until the 2030s. Additionally, the high capital costs of nuclear development have led some critics to question whether taxpayers will ultimately bear the financial risks.
Despite these concerns, the tech industry's embrace of nuclear energy signals a significant shift in how companies are approaching their energy needs. As AI continues to transform business and society, securing sustainable power sources has become not just an environmental priority but a competitive necessity.