The rise of artificial intelligence has an important role to play: AI technology is powered by data centers and the electricity consumption of a medium-sized data center is equivalent to that of 100,000 homes. According to the International Energy Agency, data center demand increased by more than three-quarters between 2023 and 2024 and is expected to account for more than 20 percent of electricity demand growth in advanced economies by 2030.
In the United States, where many of the leading AI companies are based, the energy consumption of AI-powered data processing is expected to exceed the combined electricity consumption of the production of aluminum, steel, cement and chemicals combined by the end of the decade.
In December last year, policymakers, technology companies and nuclear industry leaders from around the world gathered at the International Atomic Energy Agency (IAEA) headquarters in Vienna to explore the opportunities for nuclear energy to enable the expansion of AI and, conversely, how AI could drive innovation in the nuclear industry.
Training cutting-edge AI models requires tens of thousands of central processing units (CPUs) to run continuously for weeks or even months. At the same time, the daily application of artificial intelligence is expanding to almost all sectors such as hospitals, public administration, transportation, agriculture, logistics and education.
Every query, every simulation, every recommendation consumes energy. “We need clean, stable, carbon-free electricity that is available 24 hours a day,” says Manuel Greisinger, a senior executive at Google, focusing on AI. “This is undoubtedly an extremely high threshold, and cannot be reached with wind and solar energy alone. AI is the engine of the future, but an engine without fuel is almost useless. Nuclear energy is not only an option, but also an indispensable core component of the future energy structure.”
A data center in Ireland.
Bullish nuclear industry
Mr. Greisinger’s view is shared by IAEA Director General Manuel Grossi, who believes that the nuclear industry is destined to be the energy partner of the AI revolution. “Only nuclear power can meet all five needs: low-carbon power generation, 24-hour reliability, ultra-high power density, grid stability and true scalability,” he stated.
The nuclear industry appears to be in a bullish mood. Seventy-one new reactors are being built, adding to the 441 currently operating around the world. Ten are planned to be built in the United States, which is already home to 94 plants, the most of any country.
Tech giants that use data centers have pledged to support the goal of at least tripling global nuclear power capacity by 2050. Microsoft, for example, has signed a 20-year power purchase agreement that allowed Unit One of the Three Mile Island nuclear power plant in Pennsylvania, USA to restart.
The Enrico Fermi nuclear power plant near Monroe, Michigan, United States.
The rest of the world is also actively investing in nuclear energy, driven by the growth of AI. “Europe has the densest digital corridors in the world, with Frankfurt, Amsterdam and London as hubs,” Mr. Grossi explained.
“Traditional nuclear power powers such as France and the United Kingdom are doubling down on nuclear power construction, and emerging countries such as Poland are also accelerating their participation.”
Russia, with a competent research base in mathematics and computer science, remains the world’s largest exporter in the field of nuclear energy and is a leading operator and developer of advanced reactor technology, while China is making significant achievements in both artificial intelligence and nuclear energy.
“AI technology and the construction of AI data centers are advancing simultaneously, and the number of new nuclear reactors in the world also ranks first in the world during the same period,” said the head of the UN nuclear agency.
Japan is investing heavily in building and upgrading data centers to meet growing demand, while in the Middle East, the United Arab Emirates has established a nuclear power program and emerged as a regional AI hub.
The IAEA supports training to ensure the safety of nuclear power plants like this one in the Czech Republic.
Are small reactors the answer?
The need for much more energy, and soon, is also driving the construction of small modular reactors, very different from large traditional power plants that require huge investments and a delivery time of about 10 years.
“These types of reactors have a small footprint and enhanced safety systems, and can be deployed in nearby industrial areas, including data center campuses,” Grossi said.
Tech companies that use them don’t have to worry about regional grid supply limitations or transmission losses. This will be a decisive advantage in areas where network updates are slow and interconnection queues are long.”
Although this form of reactor still needs to move beyond the R&D phase, the IAEA is working closely with regulators and industry to make it a viable proposal and we could soon see large numbers of small reactors deployed to meet demand.
Google, for example, has signed an agreement with an energy company to purchase nuclear power from multiple small modular reactors, a world first. If all goes well, they could be operational in 2030.
Google is also turning its attention to space, exploring space solar networks to enable large-scale machine learning in orbit, making the most of unfiltered solar energy. Two prototype satellites will be launched in early 2027 to test radiation tolerance and data processing capabilities in the space environment.
Whether harnessing solar energy in space, restarting old reactors, investing in a new generation of small modular reactors or building large reactors, all actions point in the same direction: building an energy system based largely on nuclear energy that can meet the needs of future civilizations.