Amazon announced its investment in small nuclear reactors this past Wednesday, shortly after a similar commitment from Google. Both companies are exploring new avenues for carbon-free energy to cater to the rising needs of data centers and the booming field of artificial intelligence.
This initiative follows the recent statements from the owner of the now-closed Three Mile Island nuclear facility, which plans to resurrect its reactor to provide energy for Microsoft’s data centers. All three tech giants have engaged in solar and wind power projects that generate electricity without the release of greenhouse gases. However, they acknowledge the necessity of expanding their search for clean energy sources to meet escalating energy demands and their sustainability objectives.
Nuclear energy represents a viable climate-friendly option, as its reactors do not emit the harmful greenhouse gases associated with fossil-fuel-based power generation, which relies on oil, coal, and natural gas. The global appetite for electricity continues to rise, particularly due to the electrification of buildings and vehicles, with last year seeing unprecedented electricity consumption, subsequently straining electric grids worldwide. A significant portion of this demand is generated by data centers and AI technologies.
The International Energy Agency predicts that the total electricity usage of data centers could surpass 1,000 terawatt hours by 2026, more than twice the amount consumed in 2022. To put this in perspective, one terawatt hour of energy can power around 70,000 homes for an entire year.
Kevin Miller, vice president of global data centers at Amazon Web Services, remarked that the rise in AI is significantly increasing the requirements for both data centers and grid capacity, emphasizing the importance of advanced nuclear energy solutions for the future.
In the U.S., there is a push for the development of small modular reactors (SMRs), which can produce about one-third of the power generated by conventional reactors. Proponents assert that SMRs can be constructed more quickly and cost-effectively than traditional power plants, allowing for scalability suited to localized needs. If the necessary approvals from the Nuclear Regulatory Commission are granted, these reactors could start producing electricity by the early 2030s.
Should fresh, clean energy sources not be introduced alongside the growth of data centers, there is a risk that the U.S. may compromise its electric grids by relying more on non-renewable energy sources. Kathryn Huff, a former U.S. assistant secretary for nuclear energy, who now serves as an associate professor at the University of Illinois Urbana-Champaign, warned of the potential consequences of such a scenario.
Currently, no new reactors are operational on the U.S. electric grid, but financial backing from major investors may change that landscape. Huff mentioned that recent investments might represent a pivotal moment in advancing nuclear technology.
Jacopo Buongiorno, a nuclear science and engineering professor at MIT, echoed the sentiment, insisting that the industry requires clients who appreciate the reliability and carbon-free benefits of nuclear energy, even if it comes at a premium initially, until several next-gen reactors become operational and reduce costs.
Google recently announced a contract to acquire nuclear energy generated by several small modular reactors being developed by Kairos Power. Michael Terrell, Google’s senior director of energy and climate, noted the significance of these technologies for achieving continuous clean energy, not only for Google but globally.
Google anticipates the first small modular reactor will be online by 2030, with additional units to follow by 2035, contributing around 500 megawatts to the energy grid. For context, Google used over 24 terawatt hours of electricity last year, as highlighted in the company’s environmental report. One terawatt is equivalent to 1,000,000 megawatts.
In its announcements, Amazon revealed plans to collaborate with Dominion Energy to explore the implementation of a small modular reactor adjacent to its North Anna nuclear facility in Virginia. Additionally, Amazon is investing in X-energy, a nuclear reactor developer, and working with Energy Northwest in central Washington to explore the installation of four X-energy reactors in the region.
The combined potential from these three initiatives could exceed 5,000 megawatts of power by the late 2030s. However, this figure is likely just a fraction of Amazon’s total energy demands, which the company has chosen not to disclose publicly.
The new reactor configurations are advantageous for industrial use as they occupy less space while providing reliable energy, with some units capable of supplying high-temperature heat for local operations. Doug True, chief nuclear officer at the Nuclear Energy Institute, commented on the suitability of nuclear reactors for various applications based on customer energy needs.
Both Amazon and Google have made commitments to utilizing renewable energy in their efforts to tackle climate change. Google aims to achieve net-zero emissions by 2030 and intends to operate on 100% carbon-free energy consistently across all grids where it functions. The company claims to have matched its entire global electricity consumption with renewable energy purchases annually, although it has faced challenges in reducing its overall emissions.
Amazon has also committed to sourcing 100% renewable energy to meet its global electricity consumption by 2030, claiming to have achieved its goal ahead of schedule in early 2023. Nevertheless, despite securing renewable energy purchases, the company’s operational energy may not align with these claims. According to its 2023 sustainability report, Amazon’s electricity-related emissions declined by 11%, but direct emissions—termed Scope 1—rose by 7%. The company is striving for net-zero carbon emissions by 2040.
