nuclear-news

Big Tech is turning to nuclear power because it needs more energy for AI

Amazon Web Services is reportedly making a deal for electricity from a nuclear power plant

By Britney Nguyen,  https://qz.com/big-tech-nuclear-power-plants-ai-energy-electricity-1851569796 2 July 24

The generative artificial intelligence boom has led to a massive demand for electricity — and tech companies are turning to nuclear power to feed it.

A third of nuclear power plants in the U.S. are discussing deals with tech companies to supply electricity for data centers powering leading AI models, The Wall Street Journal reports. The Journal, citing unnamed sources familiar with the matter, reports that Amazon Web Services is closing in on a deal for electricity from Constellation Energy, the largest owner of nuclear power plants in the country. The Amazon subsidiary bought a nuclear-powered data center from Talen Energy in March for $650 million. Amazon did not immediately respond to a request for comment.

As tech companies race to develop larger, more powerful AI models, the overwhelming demand for electricity to power the technology could eventually slow down the race. In April, Ami Badani, chief marketing officer of the chip design firm Arm, said data centers currently make up 2% of global energy consumption. With the rapid growth of AI, Badani predicted that energy consumption from the industry could make up a fourth of all power use in the U.S. by the end of the decade.

“We won’t be able to continue the advancements of AI without addressing power,” Badani said. “ChatGPT requires 15 times more energy than a traditional web search.”

By 2030, data centers could consume up to 9% of electricity in the U.S. — more than double what is being used now, according to the Electric Power Research Institute.

In April, OpenAI chief executive Sam Altman was among investors in Exowatt, a startup developing modules that store energy as heat and produce electricity for AI data centers. The startup raised $20 million in a round that also included venture capital firm Andreessen Horowitz.

July 3, 2024 - Posted by Christina Macpherson | ENERGY