A recent report suggests that the introduction of new nuclear power capacity could potentially address approximately 10% of the expected rise in power demand for data centers in the coming decade.
As per an analysis conducted by Deloitte, the electricity demand for data centers could surge to 176 GW by the year 2035.
With the anticipated exponential growth in energy consumption within the industry, Deloitte has identified nuclear energy as a potential solution to cater to the escalating electricity requirements of data centers, given its dependable and environmentally friendly energy characteristics.
The report states, “Deloitte’s analysis indicates that new nuclear power capacity could potentially meet about 10% of the projected increase in data center power demand over the next decade.” This estimation is based on a substantial expansion of nuclear capacity, ranging between 35 GW and 62 GW during the same period.
Deloitte highlighted several advantages of nuclear power, including reliable baseload power, high energy density, scalable power output, low carbon emissions, and enhanced land use efficiency.
Nuclear Power Gains Ground
Currently, more than 90 nuclear power plants contribute around 20% of the electricity supply in the United States. With the escalating demand for energy in data centers, there is a growing momentum for new nuclear projects.
Recent initiatives include Amazon’s investment in four small modular reactors (SMRs) in Washington state, Google’s partnership with Kairos Power to develop SMRs by 2030, and Microsoft’s agreement to revive the Three Mile Island nuclear power plant near Harrisburg, Pennsylvania, which was decommissioned in 2019.
Furthermore, Meta has invited developers to propose delivering up to 4 GW of reactor capacity. Oklo, a developer of advanced nuclear technology, has committed to supplying up to 12 GW of electricity to data center operator Switch.
In a collaborative effort in March, a group of prominent companies, including major data center operators, launched a pledge emphasizing the critical role of nuclear power in enhancing energy security and resilience.
This coalition, which includes Amazon, Meta, and Google, aligns with 14 global financial institutions, 140 nuclear industry firms, and over 30 nations in supporting the World Nuclear Association’s ambition to triple global nuclear capacity by 2050.
Scaling Responsibly
While acknowledging the numerous benefits of nuclear power in addressing the power challenges faced by data centers, analysts recognize that public sentiment on nuclear power in the U.S. is intricate and evolving.
The analysts suggest that nuclear power entities streamline their operations for efficiency and speed to tackle construction timelines and cost escalations, while also focusing on innovation for safety and waste management.
Considering the current geopolitical landscape, Deloitte has raised concerns about uranium supply.
“The U.S. heavily relies on foreign sources, particularly Russia and China, for enriched uranium, posing challenges to its energy security and the advancement of advanced nuclear reactors,” the report highlights.
“Beyond fuel, in the component supply chain, the manufacturing capacity and capability for large components raise concerns for the nuclear industry in the U.S.”
