Tech companies’ energy demands are skyrocketing, and they are pioneering new types of nuclear reactors to meet them.
What happened: Amazon announced a series of deals — one of which includes anchoring a US$500 million investment — to develop small modular nuclear reactors (SMRs) that could provide it with emission-free electricity.
How it works: SMRs produce roughly a third of the power of a typical nuclear plant, but they are prefabricated and assembled on-site, which lets them operate in places that can’t fit a large reactor. They are also easier to integrate into existing electricity grids and faster and cheaper to build.
- SMRs have simpler designs and lower power outputs, which proponents claim makes them safer than larger reactors, and provide more response time if something does go wrong.
Catch-up: Other tech companies have been exploring nuclear to meet the power demands of data centres that have been sprawling thanks to AI and cloud business. This week, Google signed a deal for a half-dozen SMRs that will come online between 2030 and 2035.
- Last month, Constellation Energy announced it would be re-starting a reactor at Three Mile Island, with Microsoft as its customer (the plant being re-started is completely separate from one that suffered a partial meltdown in 1979).
Why it matters: Big Tech seems to be hoping nuclear will solve both their energy and carbon emission challenges. Google and Microsoft both set goals to be carbon neutral by 2030, but the energy demands of their growing AI businesses and data centres meant emissions have actually gone up at both companies.
- While Amazon recently reported progress on its emissions targets, some critics said the company was relying on “creative accounting” to make its claims.
Zoom out: Media images of meltdowns might make people nervous about tech companies bringing more reactors online, but nuclear power is generally considered to be highly safe, reliable, and clean when regulations are followed and infrastructure is maintained. Roughly 15% of Canada’s energy already comes from nuclear, most of it in Ontario.