Big Tech’s Nuclear Gamble: Powering AI’s Insatiable Energy Demands

November 11, 2025

In a significant shift, major technology companies like Microsoft, Google, and Amazon are making substantial investments in nuclear power to meet the escalating energy needs of artificial intelligence development. This move signals a strategic pivot from renewable sources to a more consistent, high-output energy solution, aiming to achieve ambitious carbon-neutral goals amidst the AI boom.

Key Takeaways

Major tech firms are investing heavily in nuclear energy to power AI data centers.
This strategy aims to meet carbon-neutral goals while addressing AI’s massive electricity consumption.
Investments include reviving existing plants and developing new small modular reactors (SMRs).
Nuclear power offers a reliable, around-the-clock energy source, unlike intermittent renewables.
Concerns remain regarding cost, safety, and the commercial viability of new nuclear technologies.

The AI Energy Crunch

Artificial intelligence, particularly generative AI models like ChatGPT, requires immense amounts of electricity to train and operate. Data centers housing the necessary computing power are becoming increasingly energy-intensive. Tech giants, having pledged to reach net-zero emissions by 2030, find that their existing investments in wind and solar are insufficient to cover this burgeoning demand. This has led them to seek more reliable, high-capacity energy sources.

Big Tech’s Nuclear Investments

Microsoft has agreed to a $1.6 billion deal with Constellation Energy to restart a reactor at the Three Mile Island nuclear power plant in Pennsylvania. This facility, renamed the Crane Clean Energy Center, will provide reliable, clean energy for two decades. Google and Amazon are focusing on a newer generation of nuclear technology: small modular reactors (SMRs). Google is partnering with Kairos Power to develop SMRs, with the first expected online by 2030. Amazon is investing in X-Energy, another SMR developer, and has a $500 million deal with Dominion Energy to explore SMR development.

The Appeal of Nuclear Power

Unlike solar and wind power, which are intermittent and dependent on weather conditions, nuclear power plants can operate continuously, providing a stable baseload of electricity. This 24/7 availability is crucial for the constant operation of AI data centers. Furthermore, nuclear power generates electricity with virtually no carbon dioxide emissions, aligning with the tech companies’ sustainability targets.

Challenges and Skepticism

Despite the potential benefits, the push into nuclear energy faces challenges. Critics point to the high costs and long construction times associated with traditional nuclear plants, citing projects like the Vogtle plant in Georgia that ran significantly over budget and schedule. The commercial viability of SMRs is also unproven, with some experts expressing skepticism about their cost-effectiveness and timeline. Concerns about nuclear waste disposal and safety, stemming from past accidents like Three Mile Island and Chernobyl, also persist. However, proponents argue that new reactor designs, like those using sodium cooling or pebble-bed fuel, offer enhanced safety features and lower risks.

The Future of AI and Energy

As AI continues its rapid advancement, the demand for electricity is projected to soar. The International Energy Agency estimates that global electricity consumption from data centers, AI, and cryptocurrency could more than double by 2026. This escalating need underscores the critical role that energy infrastructure will play. The significant investments by Big Tech in nuclear power suggest a belief that this technology is essential for powering the future of artificial intelligence and achieving climate goals, despite the inherent complexities and debates surrounding its implementation.