On Wednesday, Amazon announced its investment in small nuclear reactors, following a similar move by Google just two days prior. Both tech giants are exploring new sources of carbon-free electricity to support the growing energy demands of their data centers and artificial intelligence (AI) initiatives.
This development coincides with plans by the owner of the decommissioned Three Mile Island nuclear power plant to restart the reactor, enabling Microsoft to purchase power for its data centers. While all three companies have been investing in solar and wind technologies to produce clean electricity, they now recognize the need for additional sources to meet their commitments to reduce emissions.
Nuclear energy presents a viable climate solution, as its reactors do not emit the greenhouse gases associated with fossil fuel-burning power plants. The global demand for electricity is rapidly increasing due to the electrification of buildings and vehicles, with last year’s consumption reaching unprecedented levels, placing immense pressure on electric grids worldwide. Much of this demand is driven by data centers and AI technologies.
According to the International Energy Agency, electricity consumption by data centers could exceed 1,000 terawatt hours by 2026, more than doubling from 2022 levels. To put this into perspective, one terawatt hour can power approximately 70,000 homes for a year.
Kevin Miller, Amazon Web Services’ vice president of global data centers, emphasized the importance of advanced nuclear capacity, stating, “AI is driving a significant increase in the amount of data centers and power that are required on the grid. We view advanced new nuclear capacity as really key and essential.”
Energy Secretary Jennifer Granholm expressed enthusiasm for Amazon’s initiative to “bring your own power” to the expansion of data centers, highlighting the collaborative effort at an event in Virginia attended by the state’s governor and two U.S. senators.
