In a significant shift for both the technology and energy sectors, Big Tech companies are turning to nuclear power as the solution to AI's enormous electricity requirements.
Microsoft made headlines with its $1.6 billion agreement with Constellation Energy to restart the dormant Unit 1 reactor at Pennsylvania's Three Mile Island, which will provide 835 megawatts of carbon-free electricity when it comes online in 2028. The 20-year power purchase agreement represents the first time a shutdown nuclear reactor will be reactivated in the United States.
Not to be outdone, Google partnered with Kairos Power to develop up to seven small modular reactors (SMRs) expected to generate 500 megawatts collectively by 2030. The company's senior director for energy and climate, Michael Terrell, emphasized that "nuclear can play an important role in helping to meet our demand cleanly, in a way that's more around the clock."
Meta joined the nuclear movement in June 2025 with a 20-year deal with Constellation Energy to power its AI operations through the Clinton Clean Energy Center in Illinois. The partnership will expand the plant's output by 30 megawatts while preserving 1,100 local jobs and generating $13.5 million in annual tax revenue.
Amazon is pursuing multiple nuclear initiatives, including a partnership with X-Energy and Energy Northwest to develop SMRs in Washington state, and plans to build two data center complexes in Pennsylvania that will use nearly two gigawatts of electricity from Talen Energy's nuclear plant.
The rush toward nuclear comes as AI dramatically increases power demands. According to Goldman Sachs, global data center power demand could surge by 165% by 2030, potentially reaching 9% of total U.S. electricity consumption. Traditional power grids and renewable sources alone cannot meet this exponential growth.
However, challenges remain. Nuclear projects face high capital costs, lengthy construction timelines, and regulatory hurdles. Small modular reactors, while promising, remain largely a "next decade technology." Environmental concerns about nuclear waste management and safety also persist, though proponents argue these risks are outweighed by nuclear's carbon-free benefits and reliability compared to intermittent renewable sources.
As U.S. Energy Secretary Chris Wright noted in a recent policy directive, the country aims to quadruple domestic nuclear power production within 25 years. With multiple states now passing legislation to support advanced nuclear energy development, the AI-driven nuclear renaissance appears well underway.