New nuclear power could supply approximately 10% of the expected increase in power demand for data centers over the next decade, as highlighted in a recent report from Deloitte. The analysis anticipates that electricity demand for data centers could rise up to 176 GW by 2035, a significant fivefold increase.
Deloitte’s insights point to nuclear energy as a viable option for accommodating the growing electricity requirements of data centers, given its consistency and environmentally friendly energy profile. The estimate of 10% support hinges on a notable expansion of nuclear capacity, suggested to be between 35 GW and 62 GW within the same timeframe.
The report emphasizes several advantages of nuclear power, including its ability to provide reliable baseload power, high energy density, scalable output, low carbon emissions, and efficient land use. This shift towards nuclear energy is gaining traction as demand for power in data centers surges.
Currently, over 90 nuclear plants are supplying about 20% of the electricity in the United States, and the surge in demand has led to increased momentum for new projects. Notable initiatives include Amazon’s funding for four small modular reactors in Washington, Google’s partnership with Kairos Power for developing small reactors by 2030, and Microsoft’s agreement to renew operations at the Three Mile Island nuclear plant, which was closed in 2019.
Furthermore, Meta has called for proposals to deliver up to 4 GW of reactor capacity, while Oklo, a developer focused on advanced nuclear technologies, has entered an agreement to provide up to 12 GW for the data center operator Switch.
In a significant collaborative effort, a coalition of major corporations—including Amazon, Meta, and Google—has launched a cross-sector pledge advocating for the critical role of nuclear power in enhancing energy security. The goal is to increase global nuclear capacity threefold by 2050, supported by various stakeholders across the industry and international borders.
Despite the promising outlook, there remain challenges to scaling nuclear power plants efficiently. Analysts noted a complex public perception toward nuclear energy in the U.S., which is evolving and requires streamlined operations to hasten construction timelines and mitigate costs. Additionally, there are concerns about security risks tied to foreign uranium supply chains, particularly in relation to reliance on countries like Russia and China.
As the conversation around sustainable energy grows, the potential for nuclear energy to meet the demands of a rapidly digitizing world becomes increasingly significant. However, addressing public sentiment and logistics in uranium supply must be prioritized to realize this vision.
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