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Tech giants are increasingly turning to nuclear power to meet the growing energy demands of the data center boom.
For example, recent projects include Amazon’s funding of four small modular reactors in Washington state, Google’s deal with Kairos Power to develop SMRs by 2030, and Microsoft’s power purchase agreement to restart Three Mile Island, a nuclear power plant near Harrisburg, Pennsylvania, that was shut down. down in 2019.
That connection between data centers and nuclear power plants should continue to strengthen, said Gordon Dolven, director of data center research at CBRE, a Dallas-based commercial real estate services firm.
“That role is expected to grow, especially with advances like small modular reactors,” Dolven said. “[These] provide scalable and flexible solutions to support future energy needs.”
Integrating nuclear power into technology companies’ operating offerings new opportunities for contractors with specialized expertise, Fluor CEO David Constable said during the company’s third-quarter earnings call.
constable He recently identified small modular reactors as a key growth area, saying “there is a strong appetite for nuclear power to meet incredible global energy demand.” He added that “interest has never been higher.”
SMR offer significant advantages for contractors during the construction phase. Its modular design simplifies construction, shortens timelines and requires less land compared to traditional reactors, according to a statement from Amazon. This makes SMRs particularly well-suited to power data center operations, which require reliable, permanent power to support artificial intelligence, Dolven said.
“There is a growing interest in locating data centers near nuclear facilities. This is due to the need for a reliable 24/7 power supply, to support the growing demand for data centers, especially with increasing AI workloads,” said Dolven. “Nuclear power offers consistent energy with zero carbon emissions, aligning with operational and sustainability goals.”
Although expensive to build, nuclear power plants also offer relatively low operating costs for data center operators, according to the US Energy Information Administration. This makes them an attractive option for technology companies looking to power energy-intensive data centers while meeting emissions reduction targets.
Upcoming projects
Amazon agreed in October finance four SMR construction projects in Washington state in partnership with Energy Northwest. The plant will generate 320 megawatts in its first phase.
“It’s an important area of investment for Amazon,” said Matt Garman, CEO of Amazon Web Services, in a press release. “Our agreements will encourage the construction of new nuclear technologies that will generate power for decades to come.”
Similarly, Kairos Power, a nuclear technology, engineering and manufacturing company, will develop, build and operate a series of advanced reactor plants such as part of your agreement with Google. The first SMR is scheduled to be deployed in 2030, with plants strategically located near Google data centers, according to Kairos.
In Pennsylvania, Microsoft entered one as well 20-year agreement with Constellation Energy to purchase the power generated by the Crane Clean Energy Center, formerly known as Three Mile Island Unit 1. The deal will supply Microsoft’s data centers in the region and includes significant investments to restore the plant, such as the turbine, the generator, main power transformer and cooling and control systems.
These projects, however, are still awaiting final regulatory approval, and contractors for the construction phases have not yet been announced. However, recent deals continue to show the tech giants’ focus on nuclear power to meet their energy needs, Dolven said.
“Nuclear power is playing an important role in meeting the energy demands of data centers and AI technologies,” Dolven said. “Its ability to provide consistent, carbon-free power makes it an ideal solution as AI workloads drive unprecedented increases in power consumption.”
