the staff of the Ridgewood blog
Ridgewood NJ, in a bold move to meet the skyrocketing energy demands of its data centers and AI projects, Amazon has announced a $500 million investment in nuclear power. This comes hot on the heels of Google’s own plans to buy nuclear energy and Microsoft’s decision to reopen the infamous Three Mile Island plant to fuel its artificial intelligence efforts.
Why Is Big Tech Turning to Nuclear?
Nuclear power currently accounts for 19% of U.S. electricity, generated by splitting the nucleus of a heavy atom into lighter ones, a process known as nuclear fission. While it comes with high costs and potential risks, nuclear energy is touted as a clean alternative to fossil fuels like coal and gas, which emit harmful greenhouse gases. As AI applications and data centers consume ever-increasing amounts of energy, tech giants are looking for sustainable solutions to power their future. Nuclear seems to be the answer.
By 2030, it’s expected that AI and data centers will use up about 9% of all U.S. electricity, emphasizing the critical need for more reliable and scalable energy sources.
The Rise of Small Modular Reactors (SMRs)
Both Amazon and Google are betting on small modular reactors (SMRs), a more cost-effective and scalable alternative to traditional nuclear reactors. These smaller reactors can generate up to 300 megawatts of power—about one-third the capacity of a conventional reactor. SMRs are easier to build, more flexible in terms of deployment, and have a reduced environmental impact, making them attractive to Big Tech companies.
At present, only two SMRs are operational globally—one in China and one in Russia—but with the backing of companies like Amazon and Google, the adoption of SMRs in the U.S. could soon accelerate, leading the charge for a new era of nuclear energy.
The Reality Check: Tech’s Growing Energy Appetite
For years, Silicon Valley has advocated for renewable energy solutions like wind and solar to combat climate change. However, Big Tech is waking up to two undeniable realities: the next generation of AI and tech products will require vastly more energy, and renewable energy alone cannot meet these growing demands. Wind and solar, while important, aren’t scalable enough to power the increasingly energy-hungry infrastructure of AI.
Earlier this year, Microsoft made waves by securing energy from the reopening of Three Mile Island, followed by Google’s significant investments in modular nuclear reactors. Now, Amazon is jumping on the nuclear bandwagon. These companies are no longer banking solely on renewables for their critical operations. Instead, they are doubling down on nuclear as the energy source that can reliably keep their massive data centers running.
The Future of Big Tech and Nuclear Power
The investment in molten salt reactors, a specific form of SMR technology, is particularly noteworthy. These reactors could be smaller, cheaper, and easier to build and operate than their larger counterparts—a potential game-changer for the energy industry.
In the race for sustainable energy, Big Tech’s reliance on nuclear could be the key to powering the future of AI, data, and innovation. With Amazon, Google, and Microsoft pushing nuclear forward, they may just have enough influence to fast-track regulatory approvals and make nuclear power a mainstream solution.
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