Why are tech giants betting on nuclear energy?

The huge energy demand from artificial intelligence (AI) data centers has technology giants such as Microsoft, Amazon, Google and Meta racing to invest in nuclear plants.

The data centers that power artificial intelligence and cloud computing are pushing energy demand and production to new limits. Global electricity use could increase by as much as 75% by 2050, according to the US Department of Energy, with the tech industry’s AI ambitions driving much of the increase.

The energy demands of artificial intelligence (AI) data centers and cloud computing have led technology giants like Microsoft, Amazon, Google and Meta to bet on nuclear power.

Even the data centers that power AI and cloud computing could soon grow to the point where they can use more electricity than an entire city.

As leaders in the AI ​​race push for further advances and deployments of the technology, many find their energy needs increasingly at odds with sustainability goals.

“A new data center that requires the same amount of power as, say, the entire city of Chicago, can’t just be built to solve the problem unless they understand the real power needs. Those power needs need to be stable, continuous, 100% power, 24 hours a day, 365 days a year,” said Mark Nelson, CEO of Radiant Energy Group.

Earlier this month, Meta discussed pursuing nuclear power as a power source for its more energy-intensive artificial intelligence projects, looking to get nuclear reactors up and running by the early 2030s. Tech giants like Google, Microsoft, and Amazon are also pursuing nuclear power to power AI initiatives.

U.S. electricity demand is being driven by growing AI adoption and a broader push toward carbon-free energy, with nuclear power an emerging potential solution, according to a report by Grid Strategies LLC.

After years of focusing on renewable energy, major tech companies are now turning to nuclear power because of its ability to provide large amounts of energy in a more efficient and sustainable way.

Google, Amazon, Microsoft, and Meta are among the most recognizable names exploring or investing in nuclear power projects. Driven by the energy needs of their data centers and AI models, the announcement marks the start of an industry-wide trend.

"What we're seeing is that nuclear has a lot of benefits. It's a carbon-free source of electricity. It's electricity that can be turned on and run all the time. It has a huge economic impact," said Michael Terrell, senior director of energy and climate at Google.

After nuclear power was largely written off in the past due to widespread concerns about meltdowns and safety risks — and misinformation that exacerbated those concerns — experts are seeing recent investments in the technology as the beginning of a “nuclear renaissance” that could accelerate the energy transition in the US and around the world .

(Source: CNBC)

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