Nuclear Energy and AI: A New Era

The global demand for electricity is growing at a vertiginous rate. By 2035, it is expected that it will increase by more than 10,000 terawatt-hours, equivalent to the total consumption of all advanced economies today. The rise of artificial intelligence has a large part to play: AI technology is powered by data centres, and the electricity consumption of a medium-sized data centre is equivalent to that of 100,000 households.

According to the International Energy Agency (IEA), data centres demand increased by more than three-quarters between 2023 and 2024 and is expected to account for over 20% of electricity demand growth in advanced economies by 2030. In the United States, where many of the leading AI businesses are based, the power consumption of AI-driven data processing is predicted to exceed the combined electricity consumption of aluminium, steel, cement, and chemical production put together by the end of the decade.

In December of last year, policymakers, technology companies, and nuclear industry leaders from around the world gathered at the International Atomic Energy Agency (IAEA) headquarters in Vienna to explore the opportunities for nuclear power to enable the expansion of AI and, conversely, how AI could drive innovation in the nuclear industry.

Training cutting-edge AI models requires tens of thousands of central processing units (CPUs) to run continuously for weeks or even months. At the same time, the daily application of artificial intelligence is expanding to almost all sectors such as hospitals, public administration, transportation, agriculture, logistics, and education. Each query, every simulation, and every recommendation consumes power. Manuel Greisinger, a senior manager at Google focusing on AI, emphasizes the necessity for “clean, stable zero-carbon electricity that is available around the clock.” This need is beyond the capabilities of wind and solar power alone; thus, he asserts nuclear energy as an indispensable core component of future energy structures.

Alongside Greisinger, IAEA Director General Manuel Grossi shares the sentiment that the nuclear industry is poised to become a critical energy partner for the AI revolution. He highlights that only nuclear energy can meet five essential needs: low-carbon power generation, round-the-clock reliability, ultra-high power density, grid stability, and true scalability.

The optimism in the nuclear industry is notable, with 71 new reactors currently under construction globally, contributing to the existing 441 operating reactors. The United States, holding 94 plants, is actively involved, with ten more scheduled for construction.

Tech giants are also showing commitment, with many pledging to triple global nuclear power capacity by 2050; Microsoft, for instance, has signed a 20-year power purchase agreement that enabled the restart of Unit One at the Three Mile Island nuclear power plant in Pennsylvania.

Globally, nuclear investments are rising, particularly in Europe, where countries like France and the United Kingdom are ramping up constructions, while Poland seeks to enhance its nuclear participation. Russia remains the largest global exporter in nuclear energy technology, and China continues to show significant progress in both AI and nuclear energy sectors.

Further advances are being made in the construction of small modular reactors, which differ from traditional large power plants by requiring less investment and time to deploy. These reactors can be positioned close to demand locations such as data centre campuses, thus alleviating concerns regarding grid supply constraints.

Although still in the research and development stage, the IAEA endeavors to accelerate the viability of these small reactors, with Google recently signing an agreement with an energy company to procure nuclear energy from multiple small modular reactors, potentially operational by 2030.

Moreover, Google is venturing into space technologies, exploring solar networks that could facilitate large-scale machine learning in orbit, complemented by plans to launch prototype satellites for testing capabilities in 2027. As societies pivot towards nuclear energy—whether through revitalizing traditional reactors, embracing small modular designs, or innovating in space—it’s clear that the energy landscape is moving to support emerging demands from AI technologies.