Nuclear power is poised for a renaissance in the US, prompted by Big Tech’s seemingly insatiable need for electricity to power AI-generating data centers.
Three recent headlines have thrown this into focus: Microsoft (MSFT) signed an agreement with Constellation Energy (CEG) to restart a reactor at Three Mile Island. Google (GOOG, GOOGL) partnered with Kairos to buy power from small modular nuclear reactors, known as SMRs. And Amazon (AMZN) is leading a $500 million funding round for another SMR company, X-Energy.
The nuclear energy industry has largely stagnated in the US. While the country has 94 nuclear reactors, according to the Energy Information Administration, their collective generating capacity has remained at around 20% of total electricity since the late 1980s. When the Vogtle plant in Georgia opened its third and fourth reactors earlier this year, they were the first new units in seven years. One main reason for the slow pace is the stringent safety and design standards imposed by regulators.