Nuclear Power Gains Traction Amid Tech Industry Growth

NEW YORK — Nuclear power is experiencing a revival as the demand for energy grows and the need for cleaner energy sources becomes more pressing.

This resurgence is largely driven by a global focus on reducing carbon emissions to combat climate change. At the same time, the tech industry is expanding rapidly, requiring more energy to support data centers and the advancements in artificial intelligence.

These factors are prompting government and business leaders to reevaluate nuclear power—once seen as too dangerous just a few decades ago. According to McKinsey, the U.S. is now the fastest-growing market for data centers, with energy demands expected to more than triple by 2030, reaching approximately 80 gigawatts.

In particular, Constellation Energy has announced plans to reopen the Three Mile Island facility in Pennsylvania as part of a new agreement with Microsoft. Meanwhile, Oracle is looking to integrate small modular nuclear reactors to power its data centers, and Google is set to purchase nuclear energy from developing small modular reactors created by Kairos Power.

Additionally, Amazon recently acquired a nuclear-powered data center in Pennsylvania and is making investments in small nuclear reactors.

According to McKinsey analysts, "The power sector is rapidly becoming a protagonist in the AI story. Access to power has become a critical factor in driving new data center builds." This increasing demand for energy, combined with the goal to achieve "net zero" carbon emissions, is raising expectations for nuclear power's contributions.

Nuclear energy currently accounts for about 20% of the electricity generated in the U.S., and the International Atomic Energy Agency projects that nuclear generating capacity in North America could nearly triple by 2050.

The U.S. government supports nuclear power as a key player in the transition to cleaner energy and efforts to reduce carbon emissions. Notably, Georgia's Vogtle nuclear power plant has recently opened two new reactors.

The surge in demand has made utilities with nuclear capabilities an attractive target for partnerships with major data companies. Three Mile Island, which was the site of America’s most severe nuclear accident—when its Unit 2 reactor experienced a partial meltdown in 1979—could reopen its Unit 1 reactor under the recent Microsoft-Constellation deal.

Daniel L. Eggers, Constellation's chief financial officer, stated, "This deal recognizes the critical role that nuclear has in providing clean energy, and supporting reliability," during a call with analysts.

Although some states maintain moratoriums on new nuclear developments, there has been a notable trend over the last decade toward lifting these restrictions. States like Wisconsin, Kentucky, Montana, and West Virginia have all taken steps to allow new reactor construction, while others, such as New York, impose partial limitations based on size and location.

The rising interest in nuclear energy is also drawing attention to nuclear technology firms and uranium mining companies. For example, stocks of NuScale Power have surged more than fivefold this year, following a 40% increase in 2023. The company specializes in small modular reactors, which require less space than traditional nuclear plants. Financial analysts anticipate that its revenue will see significant growth in the coming years.

Uranium prices have soared to levels not seen in 15 years, boosting shares of companies like Cameco and NexGen, as demand for the essential fuel continues to rise.

nuclear, energy, technology