Tech Companies Are Racing to Harness Nuclear Power

Oil Price, By Felicity Bradstock – Aug 18, 2024

Tech companies are investing heavily in nuclear energy to power their AI operations.
Regulatory challenges and utility opposition are hindering the development of new nuclear projects.

With the demand for power increasing rapidly, tech companies are looking for innovative solutions to meet the demand created by artificial intelligence (AI) and other new technologies. In addition to solar and wind power, several tech companies are investing in nuclear energy projects to power operations. The clear shift in the public perception of nuclear power has once again put the abundant clean [!] energy source on the table as an option, with the U.S. nuclear energy capacity expected to rise significantly over the coming decades. ……………………………

Tech companies have invested heavily in wind and solar energy to power their data centers and are now looking for alternative clean power supplies. In 2021, Sam Altman, the CEO of OpenAI, invested $375 in the nuclear fusion startup Helion Energy. Last year, Microsoft signed a deal to purchase power from Helion beginning in 2028. Altman also chairs the nuclear fission company Oklo. Oklo is planning to build a massive network of small-scale nuclear reactors in rural southeastern Idaho to provide power to data centers as the electricity demand grows. It is also planning to build two commercial plants in southern Ohio.

However, getting some of these nuclear projects off the ground is no easy feat. Oklo has found it difficult to get the backing of nuclear regulators. In 2022, the Federal Nuclear Regulatory Commission (FERC), which oversees commercial nuclear power plants, rejected the firm’s application for the design of its Idaho “Aurora” project, for not providing enough safety information. …………………………………………

In addition to the red tape from regulators, many utilities are opposing new nuclear projects due to their anticipated impact on the grid. Some data centers require 1 GW or more of power, which is around the total capacity of a nuclear reactor in the U.S. PJM Interconnection, the biggest grid operator in the U.S., recently warned that power supply and demand is tightening as the development of new generation is falling behind demand. However, some tech companies are proposing to connect data centers directly to nuclear plants, also known as co-location, to reduce the burden on the grid.

However, several U.S. utilities oppose co-location plans……………………………………………………… more https://oilprice.com/Alternative-Energy/Nuclear-Power/Tech-Companies-Are-Racing-to-Harness-Nuclear-Power.html