Silicon Valley's elite have been pouring money into nuclear energy for years, convinced of its critical role in the clean energy transition. Now, the soaring energy demands of AI are providing fresh impetus for their push to advance nuclear technology in the US.
As of July 2024, America leads the world with 94 operational nuclear reactors and a generating capacity of 102 gigawatts, according to Global Energy Monitor data cited by The Diplomat. Yet, China is expected to rapidly close the gap, potentially overtaking the US in the next decade.
Despite dominating civilian nuclear power in the 20th century, the US has since lost its leadership, says David Gattie, an associate professor at the University of Georgia. Nuclear energy is now part of a broader debate around America's energy future, touching on issues such as climate change, energy security, and reducing reliance on fossil fuels. The share of nuclear power in the US energy mix remains at 9%, lagging behind oil and gas.
Gattie argues that nuclear struggles to compete with natural gas and subsidized renewables due to its need for long-term investment. Its real value, he suggests, might lie in enhancing national security, rather than purely economic benefits.
Public sentiment, however, is shifting. A Pew Research Center survey found that support for expanding nuclear energy in the US rose from 43% in 2020 to 57% by 2023, reflecting growing concerns over climate change.
The cloud computing industry is also stepping up its nuclear bets, driven by the need to cut carbon emissions and fuel energy-hungry AI systems. Microsoft founder Bill Gates, a vocal advocate for nuclear power, has committed US$1 billion to build a next-gen nuclear plant in Wyoming through his company TerraPower. The project, expected to be completed by 2030, uses sodium instead of water to cool reactors, offering enhanced safety at a lower cost.
Gates sees nuclear as essential to meeting the rising energy demands of AI, which could increase grid consumption by 10%. Beyond fission, fusion energy is also drawing attention, with Gates backing Commonwealth Fusion Systems, a startup developing the technology. According to a 2024 report by the Fusion Industry Association, fusion has attracted more than US$7 billion in investment as confidence grows in its potential to transform global energy markets.
Sam Altman, CEO of OpenAI, has also made a significant bet on fusion. In 2021, he led a US$500 million funding round for Helion Energy, marking his largest personal investment to date. Helion aims to launch its first fusion power plant by 2028, with a goal of supplying more than 50 megawatts of electricity.
Tech giants beyond Microsoft are also exploring nuclear power. Amazon's cloud division AWS inked a US$650 million deal to source nuclear energy for its data centers, while Oracle secured permits to build three small modular reactors (SMRs) to meet its growing energy needs. Though SMRs are seen as a cost-effective solution, analysts suggest it could still take another decade or more before they become a viable energy source for data centers.
