How AI is Influencing Nuclear Energy Demand

AI’s exponential energy appetite is quietly rebooting America’s nuclear industry. In 2024, Big Tech had a critical realization: artificial intelligence isn’t just a software revolution - it’s a thermodynamic one. Training a single GPT‑4‑class model consumes ~500 MWh, that’s enough to power ~15 U.S. homes for a year. But inference is the real sinkhole. It’s always-on, everywhere, all at once. AI server racks consume >100 kW per rack, 10x more than traditional racks. Renewables can’t keep up. The sun sets. The wind stalls. Batteries are expensive, and at this scale, insufficient. Clean power isn’t the same as reliable power. And for 24/7 inference, only one option checks every box: nuclear - clean, constant, controllable baseload power. So what do trillion-dollar firms do when they realize their business model runs on electrons? They start buying the grid. ▪️ Microsoft partnered with Constellation Energy to restart Three Mile Island Unit 1 by 2028, supplying 835 MW of baseload power to its AI data centers - the first large-scale restart of a decommissioned U.S. reactor. Oh, and it’s betting on fusion too: Microsoft’s backing Helion, targeting the first commercial fusion prototype by 2028. When you have Microsoft money, you can place moonshots on the sun. ▪️Google is doing what Google does: building a portfolio. It inked a deal in October 2024 with Kairos Power for molten-salt SMRs (6–7 reactors by 2035, first demo 2030). Two weeks ago, it added Elementl Power - 1.8 GW of advanced nuclear capacity. ▪️Amazon Web Services (AWS) locked down up to 1.9 GW from Talen Energy's Susquehanna plant and, last year, dropped $650 million to buy a nuclear-powered data center campus outright. ▪️Meta finally joined the party last week, signing a 20‑year Purchase Agreement with Constellation to draw 30 MW from the Clinton nuclear plant in Illinois. The capacity is modest, but it signals a strategic shift - away from carbon offsets and toward operational baseload coverage. Even Meta sees the writing on the grid. This isn’t a hypothetical future - it’s happening now.  3 major nuclear PPAs signed within 2 weeks. Soaring federal support. Billions in private bets. What began as a GPU arms race is now an energy land grab. The next big AI breakthrough might not be a model, it might be a reactor.

Technology giants like Google, Microsoft, and Amazon are increasingly investing in nuclear power to support their AI operations. The energy-intensive nature of AI models, which require a substantial and reliable power supply, is driving these companies toward nuclear energy. Despite past concerns, nuclear power is recognized for its strong safety record and environmental benefits compared to fossil fuels. Google is partnering with Kairos Power to implement small modular reactors (SMRs) for its data centers, aiming for carbon-free operations by 2030. Microsoft is reviving the Three Mile Island reactor and exploring fusion energy with Helion Energy, while Amazon is working with various partners to develop SMRs in multiple locations. These initiatives aim to provide sustainable energy solutions for the tech industry, as traditional electrical grids face challenges in meeting the growing demands of data centers. Siting nuclear plants near data centers improves efficiency and minimizes infrastructure costs. This move could spark a new era of interest and investment in nuclear energy, highlighting its potential role in achieving cleaner energy goals as AI continues to expand.

Nuclear funding startups got enriched in Q2'25. 2025 funding to nuclear startups has already passed 2024 levels and is on track to more than double YoY. The surge in nuclear technology investments is creating what many see as a nuclear renaissance. What's fueling the nuclear boom? 1) AI and Data Center Energy Crisis The primary catalyst is the explosive growth in AI-driven energy demand. US data center power consumption is projected to triple from 25GW in 2024 to over 80GW by 2030, creating a $500B power infrastructure gap. Between 2023 and 2028, data centers could drive nearly half of US electricity growth. Tech companies are responding with unprecedented nuclear investments and investment activity has exploded across nuclear sectors: →SMR funding: 2025 equity funding is on pace to match 2022's record year, driven primarily by tech companies seeking reliable AI power →Fusion investment: The sector has attracted over $6.4B in equity funding since 2020, with tech companies leading recent rounds →Defense applications: Nuclear-adjacent defense tech reached a record $11.1B in funding within the first two quarters of 2025 Nuclear offers unique advantages that renewable sources can't match: →24/7 reliability: Unlike intermittent solar and wind, nuclear provides consistent baseload power essential for AI operations →Carbon-free energy: Meets corporate sustainability goals while delivering massive scale →Energy independence: Reduces reliance on volatile energy markets and geopolitically sensitive supply chains 2) Supply Chain Urgency Supply chain bottlenecks are forcing companies to secure nuclear capacity early. NuScale Power and TerraPower have delayed first plant deployments to 2030 due to high-assay, low-enriched uranium (HALEU) fuel shortages, pushing companies to secure supply agreements proactively. 3) Proven Commercial Viability Nuclear technologies are demonstrating commercial success through medical applications, building investor confidence. SHINE Technologies successfully produces medical isotopes using fusion technology, while TerraPower Isotopes contracts with pharmaceutical companies for cancer treatment materials. 4) Government Policy Support Robust government backing includes Centrus Energy's $3B Department of Energy contract for domestic HALEU production, and the DOE's Advanced Reactor Demonstration Projects providing $2B to TerraPower and $1.2B to X-energy. This convergence of AI-driven demand, tech company capital, supply chain pressures, and policy support is creating the most favorable environment for nuclear investment in decades. *Data from CB Insights’ State of Venture Q2’25 report. Explore the latest data on what happened last quarter across the startup ecosystem at the link in the comments.