Tech giants embrace nuclear power to address growing energy demands
Amazon and Google sign new agreements
As the demand for AI continues to soar, tech giants like Amazon, Google and Microsoft are turning to nuclear power to meet their growing energy needs.
On Wednesday, Amazon Web Services (AWS) announced that it has signed three new agreements to advance nuclear energy projects, including facilitating the construction of several Small Modular Reactors (SMRs).
SMRs are smaller, more modular versions of traditional nuclear reactors, offering advantages like lower upfront costs and the ability to be built in factories and shipped to sites. This technology is seen by some as the key to unlocking the future of atomic energy.
"Nuclear energy is both carbon-free and able to scale, which is why it's an important area of investment for Amazon," said Matt Garman, CEO of AWS.
"Our agreements will encourage the construction of new nuclear technologies that will generate energy for decades to come."
In Washington State, Amazon has entered into an agreement with Energy Northwest, a consortium of state public utilities, to develop four advanced SMRs.
These reactors will be built, owned, and operated by Energy Northwest, with the first phase expected to generate around 320 megawatts (MW) of power, and the potential to expand to 960 MW in total.
Amazon is also investing in X-Energy, a leading developer of next-generation SMR reactors. X-Energy's advanced reactor design will be implemented in the Energy Northwest project.
The investment also supports the manufacturing capacity needed to produce SMR equipment for over five gigawatts of future nuclear energy projects using X-Energy's technology.
In Virginia, Amazon is working with Dominion Energy to explore an SMR project at an existing nuclear power station.
The push for nuclear investment comes as tech giants face skyrocketing energy demands, driven by the rapid growth of AI and massive datacentres that underpin the technology.
Datacentres could account for as much as 9% of the US's total electricity generation by 2030, up from 4% in 2023, according to a May report from the Electric Power Research Institute.
The shift towards nuclear power by tech companies is also driven by their desire to achieve net-zero carbon emissions. While wind and solar energy are renewable sources, they have limitations in terms of consistency and capacity. Nuclear power, on the other hand, can provide a reliable and abundant supply of electricity around the clock.
Earlier this week, Google announced a partnership with Kairos Power to develop SMRs utilising molten salt cooling technology. The agreement aims to bring the first nuclear reactor online by 2030.
"The grid needs new electricity sources to support AI technologies," said Michael Terrell, senior director for energy and climate at Google.
"This agreement helps accelerate a new technology to meet energy needs cleanly and reliably, and unlock the full potential of AI for everyone."
Kairos Power is currently building a demonstration reactor in Tennessee.
Last month, Microsoft also took a significant step by agreeing to revive the Three Mile Island nuclear power plant in Pennsylvania.
Despite the optimism, SMRs are not without their critics, and concerns remain about the overall economics of nuclear power, regardless of reactor size.
NuScale Power, a SMR developer, recently cancelled plans to build a project in Utah due to rising costs.
"Artificial intelligence may be new, but promises of revolutionary nuclear technology solving our energy problems are not," said Johanna Neumann of Environment America.
"Big Tech should focus on proven solutions with lower risks, like energy efficiency and renewable energy sources."