Technology companies are increasingly turning to nuclear energy to address the substantial energy demands of the data centers essential for training and operating large AI models used in current generative AI applications. Microsoft and Google are among the firms that have entered agreements to acquire nuclear power from U.S. suppliers, enhancing their energy capacity for data centers.
Google recently announced a partnership with Kairos Power, a company developing small modular reactors, to support advancements in AI. Michael Terrell, Google’s senior director for energy and climate, emphasized the need for clean, reliable energy sources to foster technological development, highlighting nuclear energy’s potential to meet energy demands comprehensively and sustainably.
Google’s plans include having its initial nuclear reactor from Kairos Power operational by 2030, with additional reactors expected to come online by 2035. Similarly, Microsoft has concluded a deal with Constellation to revitalize a dormant reactor at Pennsylvania’s Three Mile Island nuclear power plant, which has been inactive for five years following the 1979 nuclear incident.
These efforts arise as tech companies face pressure to secure energy sources for data centers, which are critical for current cloud computing and AI applications. The need for GPUs—typically rented from cloud “hyperscalers” like Amazon, Microsoft, and Google—coupled with rising interest in AI technologies such as OpenAI’s ChatGPT, has led to significant increases in energy consumption.
Global electricity usage by data centers, AI, and cryptocurrency sectors is projected to surge from 460 terawatt-hours (TWh) in 2022 to over 1,000 TWh by 2026, according to the International Energy Agency. Additionally, research from the University of California, Riverside, highlights the environmental impact, noting that AI models like ChatGPT can consume 500 milliliters of water for every 10 to 50 prompts.
Despite its potential, nuclear energy remains controversial, with many climate activists opposing it due to environmental and safety concerns, as well as its non-renewable status. Greenpeace criticizes nuclear power for being costly and hazardous, though advocates argue it offers reliable, nearly carbon-free electricity compared to renewable energy sources such as solar and wind.
Rosanne Kincaid-Smith, COO of Northern Data Group, suggests nuclear energy might be crucial for the future, emphasizing the need for informed discussions about sustainable power in AI development. While Northern Data Group is not currently utilizing nuclear power, it remains engaged in the energy conversation to support the broader ecosystem.
