Google and Amazon invest in small modular reactors to power data centers
When Meta announced last week that it's looking for a nuclear energy developer to power its future AI operations, it joined a growing cadre of tech companies all suddenly repeating the same refrain: We need more power—preferably carbon-free—and lots of it. Electricity demand in the United States is expected to grow more than 15 percent over the next five years after remaining flat for the last two decades, according to a recent report from power sector consulting firm Grid Strategies. Most of the growth will be driven by the needs of data centers and their operators, who are scrambling to secure large amounts of reliable power while keeping their carbon neutral goals. Nuclear energy fits that bill, and over the last few months, Amazon, Google, and Microsoft have all announced ambitious deals to acquire it for their operations. Some of the plans aim to secure energy in the near term from existing power plants. Others focus on the long game and include investments in next-generation nuclear energy and small modular reactors (SMRs) that don't yet exist on a commercial scale. "Data centers have grown in size and AI is dramatically changing the future [energy] forecast," says Dan Stout, founder of Advanced Nuclear Advisors in Chattanooga, Tenn. "In the 2030s, the grid will have less coal and there will be some constraints on gas. So nuclear energy's power density and carbon-free high reliability is attractive, and tech companies are starting to take action on new nuclear deployments," he says. Big Tech Turns Its Attention to Nuclear Power Amazon kicked off the bevy of public announcements in March when it bought a data center adjacent to a nuclear power plant in Pennsylvania. The purchase came with 300 megawatts of behind-the-meter electricity. After closing the deal, Amazon requested another 180 MW. The request caused a dustup over energy fairness, and in November regulators rejected it, leaving Amazon looking for other options. Tech companies are watching the…