Tech Giants Embrace Nuclear Power to Fuel AI's Energy Demands

How to invest in nuclear power

Tech giants Amazon, Google and Microsoft are turning to nuclear power to meet the energy needs of artificial intelligence, while reviving the industry in the US. The fates of nuclear power and cutting-edge technologies are becoming increasingly intertwined. Electricity consumption is beginning to rise in certain areas, a trend stimulated by the need to develop more data centers dedicated to AI and cloud computing. This marks a turning point for the energy sector, which hasn't seen such a surge in demand for years. Today, nuclear power boasts 20,000 years of reactor experience and supplies 31 countries, plus Taiwan, as well as being an energy mainstay for others via regional grids, notably in Europe. The industry, once divided between East and West, is now a global market where reactor components can be sourced from different continents, as can the uranium used as fuel. Beyond electricity, nuclear power supports healthcare, the fight against disease, the conquest of space, and now big data with AI. In 2023, 14 countries produced at least a quarter of their electricity from nuclear power. France is the most nuclearized country, with 57 reactors in 19 power plants, generating 320.4 TWh, or almost 65% of electricity production in mainland France. This makes the country's nuclear fleet the third largest after the USA (93 nuclear reactors) and China (56 reactors, with a further 14 under construction). Nuclear power will therefore account for around 9.1% of global energy production in 2023. However, we seem to be reaching the end of a cycle for nuclear power as we know it. There are 440 nuclear reactors in operation worldwide today, 4 fewer than in 2020, although 60 are under construction. We all know just how long it takes to build a power plant, often 2 decades. The low level of plant renewal in the West over the past 50 years has led to the advanced age of our reactors: in all countries, the average operating nuclear reactor has been in operation for almost 31 years, with the oldest reactors having been in operation for over 52 years (5 reactors), according to the IAEA. There is a clear need for new generation capacity worldwide. The main aim is to replace obsolete fossil-fuel power plants, especially coal-fired ones, which are major emitters of carbon dioxide, while at the same time meeting the growing demand for electricity in many countries. In a context where long-term environmental and economic concerns predominate, nuclear power presents itself as a prime alternative, particularly in times of soaring fossil fuel prices. Nevertheless, it is essential to recognize that nuclear power is not without environmental consequences. The construction of power plants consumes resources such as cement and steel, and the risks of water and soil contamination in the event of an incident are not negligible. What's more, inappropriate operation or poor management of nuclear waste can have disastrous repercussions on a region and its inhabitants for decades, even centuries. The disasters at Chernobyl (1986) and Fukushima (2011) are still fresh in the minds of many. Against this backdrop, positions have hardened, leading to a polarization that complicates the search for consensual and sustainable solutions. The challenge of reconciling nuclear safety with energy and environmental imperatives remains a major one, testifying to the complexity of reconciling stakeholders. New-generation technologies The nuclear technologies of the future cover a wide range of innovative solutions. Some are already operational on a small scale; others are at the conceptual stage, whose feasibility has yet to be demonstrated, and which sometimes require major technological hurdles to be overcome. New nuclear reactor technologies can be grouped into three main categories: fourth-generation reactors, small modular reactors (SMRs) and innovations designed to significantly improve the safety and operating life of existing power plants. The term "Generation IV" was coined by the Generation IV International Forum (GIF), set up in the early 2000s by the US Department of Energy. These new reactors are still in the development phase, as they have to meet a number of objectives: saving the use of natural resources, minimizing nuclear waste, reducing construction and operating costs, enhancing safety and limiting the risk of nuclear proliferation. The first six models are due to enter service in 2030. Tech giants, meanwhile, are turning to SMRs (small modular reactors), more compact but less powerful models (between 20 and 300 MWe per unit, compared with 900 to 1650 MWe for Generation III EPRs). For the time being, projects for small SMR reactors are still in their infancy. Their modularity would enable them to be mass-produced in factories and then assembled on site. Two questions remain unanswered: it is not yet certain that the production cost will be lower than that of a conventional reactor, and their total safety has yet to be demonstrated. However, this hasn't stopped certain players from taking an interest in the projects. Amazon has invested $500 million in X-energy to develop nuclear reactors, and has purchased land next to a power plant in Pennsylvania for a new data center. Similarly, Google(Alphabet) plans to buy nuclear power from US start-up Kairos Power, to be produced by SMRs by 2030. Finally, Microsoft has also signed an agreement to purchase nuclear power from Constellation Energy, with plans to contribute to the re-commissioning of part of the Three Mile Island plant, site of the worst nuclear accident in US history. These initiatives come against a backdrop of declining nuclear power in the United States, where the share of electricity generated by nuclear power has fallen in recent years. A recent rise in uranium spot prices since 2022 is also consistent with this renewed interest. The renewed interest in American nuclear power has boosted start-ups specializing in the design of these reactors. Nuscale Power (+476%), Oklo (+111%) and Nano Nuclear Energy(+427% since its IPO in May) are all enjoying strong investor interest. Finally, Rolls-Royce (+89%) is also present in this segment with its Rolls-Royce SMR subsidiary, as is GE Vernova (+120%) with its BWRX-300 model, for which construction is due to start next year in the UK, with operations scheduled to begin in 2029. Only American companies have publicly traded stocks in this technology. SMR projects in Europe and Asia are still private. In France, EDF has set up a subsidiary called Nuward, specializing in SMR design. In support of these advanced technologies, services and equipment play a crucial role. They provide the infrastructure, technology and expertise needed to maintain and optimize the operation of nuclear power plants. Electricity producers convert nuclear power, providing an essential source of electricity for national and even regional markets. These companies are often less exposed to nuclear risks, as they are diversified, also operating coal- and gas-fired power plants, as well as solar and wind farms. Upstream, uranium mining, production and trading form the material foundation of the industry, ensuring the supply of fuel. However, uranium stands out from other metals because of its potential dual use, both in energy generation and in the manufacture of weapons of mass destruction. Moreover, the presence of uranium is unevenly distributed across the globe. Kazakhstan accounts for 43% of global production, followed by Canada (15%), Namibia (11%) and Australia (9%). Other companies involved in uranium mining, production and trading:

Will AI's huge energy demands spur a nuclear renaissance?

Last week, technology giants Google and Amazon both unveiled deals supporting 'advanced' nuclear energy, as part of their efforts to become carbon-neutral. Google announced that it will buy electricity made with reactors developed by Kairos Power, based in Alameda, California. Meanwhile, Amazon is investing approximately US$500 million in the X-Energy Reactor Company, based in Rockville, Maryland, and has agreed to buy power produced by X-energy-designed reactors due to be built in Washington State. Both moves are part of a larger green trend that has arisen as tech companies deal with the escalating energy requirements of the data centres and number-crunching farms that support artificial intelligence (AI). Last month, Microsoft said it would buy power from a utility company that is planning to restart a decommissioned 835-megawatt reactor in Pennsylvania. The partnerships agreed by Google and Amazon involve start-up companies that are pioneering the design of 'small modular reactors', which are intended to be assembled from prefabricated pieces. The idea is to make nuclear reactors that are smaller, cheaper, safer and faster to deploy than those used in conventional plants. The designs pursued by X-energy, Kairos and several other companies (funded, in part, by institutions such as the US Department of Energy and the European Commission) are radically different from those of established energy companies, but they still have a way to go before they become a reality. Nature talked to nuclear-energy researchers to explore the significance and possible implications of these big-tech investments. Building nuclear power stations -- a process often plagued by complex permit procedures, construction delays and cost overruns -- is financially risky, and betting on unproven technologies is riskier still. But the deals with Google and Amazon could provide a "massive" push for Kairos and X-energy, says nuclear engineer Jacopo Buongiorno, who heads up the Center for Advanced Nuclear Energy Systems at the Massachusetts Institute of Technology in Cambridge. "The biggest value is a vote of confidence, and of course it comes with some cash," he says. Such announcements could help companies to raise extra funding, he says, and jump over the 'innovation valley of death' that often separates promising ideas from commercial success. But the details of the deals are murky, and the level of support provided by Amazon and Google is likely to be "a drop in the bucket" compared with the billions these start-ups will ultimately need, says physicist Edwin Lyman, director of nuclear power safety at the Union of Concerned Scientists in Washington DC. "The PR machine is just going into overdrive," says Lyman, but "private capital just doesn't seem ready yet to take that risk". Allison Macfarlane, director of the School of Public Policy and Global Affairs at the University of British Columbia in Vancouver, Canada, and former chair of the US Nuclear Regulatory Commission (NRC), says that the speed of progress in computer science raises another question. "If we're talking 15 years from now, will AI need that much power?" A number of start-up companies -- as well as some established corporations, including Toshiba and Rolls Royce -- are developing small reactors, and each claims its own originality and advantages. Most are pursuing designs that are different from those that have been used so far for electricity production. In almost all types of nuclear reactor, the source of energy is the splitting of uranium atoms. A nucleus of the unstable isotope uranium-235 breaks up when hit by a neutron, and this releases more neutrons, which hit more nuclei, leading to a chain reaction. A conventional nuclear power station extracts the resulting energy -- released as heat -- by pumping cold water through the reactor's core and producing pressurized steam to power turbines that generate electricity. X-energy's design replaces the water with helium, whereas Kairos plans to use molten salt. Both forgo the conventional nuclear-fuel rods, replacing them with thousands of round fuel 'pebbles'. The pebbles are continually added at the top of the reactor, while spent pebbles are removed from the bottom, not unlike the way a gumball vending machine works. "The smallest reactors, in theory, could have a high degree of passive safety," says Lyman. When shut down, the core of a small reactor would contain less residual heat and radioactivity than does a core of the type that melted down in the Fukushima Daiichi disaster that followed the cataclysmic 2011 tsunami in Japan. The companies also say that the proposed pebble-bed reactors are inherently safer because they are not pressurized, and because they are designed to circulate cooling fluids without the help of pumps (it was the loss of power to water pumps that caused three of the Fukushima plant's reactors to fail). But Lyman thinks it is risky to rely on potentially unpredictable passive cooling without the backup of an active cooling option. And as reactors become get smaller, they become less efficient. Another start-up company, NuScale Power, based in Portland, Oregon, originally designed its small modular reactor -- which was certified by the NRC -- to produce 50 MW of electricity, but later switched to a larger, 77-MW design. The need to make the economics work "makes passive safety less credible", Lyman says. In some cases, small modular reactors "could actually push nuclear power in a more dangerous direction", says Lyman. "Advanced isn't always better." In particular, Lyman points out that the pebble-bed designs drawn up by X-energy and Kairos would rely on high-assay low-enriched uranium (HALEU), which comprises 10-20% uranium-235 -- compared with the 5% enrichment level required by most existing reactors (and by NuScale's reactor). HALEU is still classified as low-enrichment fuel (as opposed to the highly enriched uranium used to make nuclear bombs), but that distinction is misleading, Lyman says. In June, he and his collaborators -- including physicist Richard Garwin, who led the design of the first hydrogen bomb -- warned in a Science article that a bomb could be built with a few hundred kilograms of HALEU, with no need for further enrichment. Smaller reactors are also likely to produce more nuclear waste and to use fuel less efficiently, according to work reported in 2022 by Macfarlane and her collaborators. In a full-size reactor, most of the neutrons produced by the splitting of uranium travel through a large volume of fuel, meaning that they have a high probability of hitting another nucleus, rather than colliding with the walls of the reactor vessel or escaping into the surrounding building. "When you shrink the reactor, there's less material in there, so you will have more neutron leakage," Macfarlane says. These rogue neutrons can be absorbed by other atomic nuclei -- which would then themselves become radioactive. NuScale points out that the study was based, in part, on the company's now-abandoned 50-MW design, but Macfarlane and others say that the problem is likely to apply to most small reactors. The capacity to build components in an assembly line could drastically cut reactors' construction costs. But there are also intrinsic economies of scale in building larger reactors, says Buongiorno. "Don't believe people blindly" when they say smaller reactors will produce cheaper energy, he says: nuclear energy has a lot going for it, but "it ain't cheap" -- and that is unlikely to change significantly. However, once the technology has been proven and has matured, building each individual small reactor should be cheaper and faster than constructing large, conventional ones, Buongiorno adds. This could make them an attractive proposition to investors and speed up their adoption. Meanwhile, Lyman and others worry that the hype surrounding small modular reactor technology -- and the push to cut costs -- could lower safety standards. Some companies, for example, say that their reactors are so safe that they won't need reinforced-concrete containment structures. "We shouldn't shut down existing nuclear power. We need it desperately, and we desperately need to get off fossil fuels," says Macfarlane. Even some lifelong opponents of nuclear power grudgingly agree. But whether building new reactors is the best way to rapidly cut emissions is debated. Macfarlane points out that solar panels and wind turbines can be deployed at a much faster rate. Other assessments, including one by the International Energy Agency, suggest that in many parts of the world, it would be prohibitively expensive to rely wholly on erratic solar and wind power, even with the addition of massive batteries -- and that ready-on-demand sources, including nuclear power, will still have an important role in future energy provision.

A.I.'s Energy Needs Go Nuclear -- Literally! | Investing.com UK

The emergence of advanced artificial intelligence has not just changed the landscape of technology -- it's also reshaping our energy demands in an unexpected way: nuclear power is making a comeback. From Google (NASDAQ:GOOGL) to Microsoft (NASDAQ:MSFT), tech giants are increasingly exploring nuclear energy to power AI, marking an unexpected new chapter for this energy source. This isn't about revisiting outdated nuclear behemoths; it's about leveraging modern, small modular reactors (SMRs) and advanced nuclear systems to handle the surging energy appetite of AI-driven data centres. Here's a closer look at why this partnership makes sense. An Unexpected New Need for Nuclear Power AI systems, particularly those involved in machine learning and data processing, are consuming staggering amounts of electricity. With AI operations expected to contribute to nearly 9% of U.S. energy consumption by 2030, companies like Google have realised the need for reliable and scalable energy sources. To meet the anticipated surge in power demands, tech firms are betting on nuclear -- a surprising but efficient choice. Google has teamed up with Kairos Power to develop SMRs, aiming to bring these reactors online by the early 2030s to power their AI systems. Microsoft, meanwhile, is pursuing a different nuclear route by seeking to revive conventional nuclear plants such as the Three Mile Island facility. This revival is driven by AI's soaring energy needs, and by the desire to find alternatives that are both environmentally sustainable and capable of supporting consistent power requirements. Why Nuclear Power Makes Sense for AI Why opt for nuclear power when renewables like wind and solar are rapidly advancing? The answer lies in consistency. While renewable energy sources are fantastic for reducing carbon footprints, they often suffer from intermittency issues -- solar only works when the sun is shining, and wind power depends on suitable weather conditions. On the other hand, nuclear power provides a continuous and reliable energy supply, making it well-suited to power-hungry AI systems that need stable electricity for data crunching and analysis. SMRs, in particular, are uniquely adapted to this new wave of energy requirements. Unlike conventional nuclear reactors, which are huge, cumbersome, and expensive, SMRs are smaller, faster to deploy, and capable of producing modular energy. They have a reduced carbon footprint and are more flexible in meeting localised energy demands, which makes them an ideal partner for data centres focused on AI. Safety and Benefits of Modern Nuclear Power One of the historical challenges of nuclear energy has been safety concerns. However, SMRs address many of the issues faced by traditional reactors. These advanced nuclear reactors are inherently safer due to their smaller cores and simpler designs, which reduce the risks of a catastrophic failure. SMRs also need to be refuelled less often, typically every 3-7 years, compared to every 1-2 years for traditional reactors. This increased safety, alongside improved efficiency, is driving new confidence in nuclear power's ability to meet AI's colossal energy requirements without a significant environmental toll. Nuclear energy, being almost carbon-neutral, provides a critical advantage in helping companies reach their ambitious climate goals. Both Google and Microsoft are investing heavily in nuclear as part of their efforts to achieve net-zero emissions, which not only underscores nuclear's safety and benefits but also its crucial role in the future of sustainable energy for technology. Nuclear Stocks to Watch For investors intrigued by this trend, some key players are set to benefit from the renewed interest in nuclear power. Companies like Kairos Power (Private Company) are developing the SMR technology that Google is betting on, while Westinghouse (Owned by Brookfield Business Partners - BBUC) and Nuscale Power (NYSE:SMR) are other major names in the small modular reactor space. Traditional nuclear companies such as Electricité de France (EPA:EDF) and Brookfield Renewable Partners LP (NYSE:BEP) are also involved in nuclear innovation, with potential upside due to their leadership in advanced nuclear projects. Meanwhile, Microsoft has looked at reviving traditional plants, which might make operators with existing assets, like Constellation Energy Corp (NASDAQ:CEG), appealing prospects for investors looking at how traditional nuclear energy infrastructure could meet future AI needs.

Why Tech Giants Are Betting Big on Nuclear Power | Investing.com UK

If you've been paying attention to the markets, especially in recent months, you've likely noticed something interesting happening with nuclear energy stocks. Shares of companies involved in uranium and nuclear, like Nuscale Power (NYSE:SMR), Oklo (NYSE:OKLO), Cameco (NYSE:CCJ) and Centrus Energy (NYSE:LEU), have been surging, driven in large part by groundbreaking nuclear energy deals with major tech firms. This trend isn't just another market blip -- it's part of a larger movement that has far-reaching implications for investors, especially as we enter the age of artificial intelligence (AI). Nuclear energy truly appears to be staging a major comeback. You don't have to be a tech expert to know that AI is changing everything. From self-driving cars to advanced data analytics, artificial intelligence is quickly becoming a key part of our modern economy, valued at $184 billion today. But what many people don't realize is just how much electricity is required to power the data centers that make AI possible. Companies like Microsoft (NASDAQ:MSFT), Amazon (NASDAQ:AMZN) and Google (NASDAQ:GOOGL) are racing to build out data centers capable of handling this incredible demand, and they need a lot of energy to do it. By one estimate, data centers could consume up to 9% of the United States' electricity by 2030, more than double what they're using today. That's a staggering amount of power, and it raises serious questions about how we're going to meet that demand in a way that's both reliable and sustainable. Here's the thing: Renewable energy sources like wind and solar, as popular as they are, simply aren't enough to get the job done. They're intermittent, meaning they can't provide electricity 24/7. That's where nuclear comes in. For years, nuclear power has been out of favor in the U.S. High costs, regulatory hurdles and the public's lingering fears from accidents like Chernobyl and Fukushima have kept many from embracing it. But times are changing. This week alone, we saw two major announcements that signal what I believe is a new era for nuclear energy in the U.S. Amazon signed agreements to support the construction of several new Small Modular Reactors (SMRs) in the Pacific Northwest. These reactors, owned and operated by Energy Northwest, will eventually generate enough power to serve the needs of over 770,000 U.S. homes. Meanwhile, Google announced a partnership with Kairos Power to bring 500 megawatts of SMRs online by 2035. Perhaps the most eye-catching deal came from Microsoft, which made headlines for partnering with Constellation Energy (NASDAQ:CEG) to revive the Three Mile Island nuclear plant -- yes, that Three Mile Island, renamed as Crane (NYSE:CR) Clean Energy Center. Microsoft is betting $1.6 billion to restore the plant by 2028 and secure carbon-free energy for the next 20 years. Add all this up, and 2025 is expected to usher in a record amount of nuclear generation, with more than half of it coming from China and India, according to the International Energy Agency (IEA). What's driving these tech giants to invest in nuclear? Simple: Nuclear power offers reliable, clean energy 24/7, making it potentially capable of meeting the enormous demands of AI-driven data centers. The Electric Power Research Institute (EPRI) recently released a report showing that data centers' electricity consumption could more than double by 2030. As demand skyrockets, traditional renewables like solar and wind won't be able to provide the uninterrupted power that companies like Amazon, Microsoft and Google require. In the long run, these tech companies are likely making smart bets. Bain & Co. forecasts that U.S. energy demand could outstrip supply in just a few short years. By 2028, utilities will need to increase annual electricity generation by up to 26% to keep pace with projected demand. Nuclear power is uniquely positioned to fill the gap, and it's no wonder Wall Street has started to take notice. Since Microsoft's nuclear deal with Constellation was announced, stocks in companies like Oklo have skyrocketed. Oklo, which is backed by OpenAI CEO Sam Altman, has surged more than 166% in the month through mid-October. Other nuclear stocks, including NuScale and Centrus Energy, have also seen impressive gains. For investors looking for exposure to the energy sources that will power the AI age, nuclear might just be the next big thing. Nuclear power is not without its challenges. Building new plants is still incredibly expensive, and the industry has been plagued by cost overruns for years. Just look at Microsoft's deal with Constellation -- according to Morgan Stanley (NYSE:MS), Microsoft is paying at least 100% over market rates for the power they'll get from Three Mile Island. But given the powerful demand trends we're seeing, this could actually turn out to be a bargain a few years down the road. Nuclear energy provides reliable, carbon-free power at a scale that renewables simply can't match, and with global data center energy consumption expected to double by 2027, we believe that the value proposition for nuclear is only going to grow stronger. So what does all of this mean for investors? With the AI revolution driving massive demand for electricity, nuclear power is well-positioned to be a major player in the energy market for decades to come. The entire U.S. energy sector, in fact, is going to need a significant overhaul to meet future demand. The U.S. operates the largest nuclear fleet in the world with 94 reactors, but that's not going to be enough. To ensure our energy security and to meet our carbon reduction goals, I believe we should significantly expand the current fleet. How would you describe your opinion of nuclear power? Past performance does not guarantee future results. All opinions expressed and data provided are subject to change without notice. Some of these opinions may not be appropriate to every investor. By clicking the link(s) above, you will be directed to a third-party website(s). U.S. Global Investors does not endorse all information supplied by this/these website(s) and is not responsible for its/their content. Holdings may change daily. Holdings are reported as of the most recent quarter-end. The following securities mentioned in the article were held by one or more accounts managed by U.S. Global Investors as of (09/30/2024): Amazon.com.

Tech companies want small nuclear reactors. Here's how they'd work

Amazon and Google have announced agreements with companies building small modular reactors To fuel the insatiable energy appetite of artificial intelligence, tech companies are going big on small nuclear reactors. Last week, both Google and Amazon announced agreements with companies that are developing small modular reactors. These reactors would produce less power than current reactors, and many designs include different types of fuel or coolants, plus additional safety features. The announcements have amplified the buzz around small modular reactors, which have attracted increasing attention in recent years, given the need for clean energy that won't contribute to climate change. A variety of companies have sprung up to meet the need, producing a cornucopia of proposed designs for small modular reactors. "If you combine the need for resilient power with the need for clean power and the emerging availability of these designs, you get a great upswing in interest," says nuclear engineer Kathryn Huff of the University of Illinois Urbana-Champaign. Meanwhile, the U.S. government has been supporting the development of small modular reactors, further feeding interest. So what's on the horizon for this potential new nuclear generation? We break down the big questions about how and why nuclear reactors are going small. Commercial reactors in the United States typically produce around a billion watts of electrical power. Small modular reactors would produce less than a third of that. Traditional nuclear plants require massive investment up front, a hurdle that has stalled the building of new reactors in the United States for decades. The first newly constructed reactors built in the country in 30 years -- two in Waynesboro, Ga., that switched on in 2023 and 2024 -- cost around $30 billion. The construction was years behind schedule and billions over budget. By pivoting to smaller reactors, companies and policy makers aim to propel the proliferation of nuclear power, which is touted as a source of reliable energy free from greenhouse gas emissions. Plus, since smaller reactors produce less power, less residual heat needs to be removed to safely shut down the reactor in the event of an accident, simplifying safety systems. With smaller reactors, Huff says, it's easier to build components offsite in a factory and ship them where they need to go, rather than custom building them from raw materials on site. "The more you can build these reactors like airplanes rather than airports, the cheaper it's generally going to be." In the United States, nuclear power currently boasts support from both Democrats and Republicans, an unusual situation that has allowed the sector to thrive, even as political powers shift. "In the past 10 years, it's been pretty consistent and growing support, and I think it's a big deal," says nuclear engineer Todd Allen of the University of Michigan. Nuclear energy is a pillar of the Biden administration's plan to achieve climate goals. Meanwhile, AI's insatiable need for energy has created a problem for tech companies that don't want to be seen as climate change baddies (SN: 12/11/23). Google announced October 14 that it would purchase energy from small modular reactors to be built by Kairos Power, which aims to have reactors starting up in the 2030s. And on October 16, Amazon announced an investment in the company X-energy and agreements with utility companies in Virginia and Washington state to establish small modular reactors. And it's not just big tech that's interested. A 2023 agreement between X-energy and the chemical company Dow announced a small modular reactor to be built at one of Dow's sites. The U.S. Department of Energy has been funding development of small modular reactors. On October 16, the DOE announced $900 million in funding for deployment of small modular reactors. And both X-energy and the Bill Gates-backed TerraPower are building demonstration projects with DOE support. Traditional nuclear plants still play a role for the foreseeable future. On September 20, Microsoft announced a deal to restart the Three Mile Island power plant near Middletown, Pa., which shut down in 2019. (Yes, that Three Mile Island. After the infamous partial meltdown in 1979, another reactor at the plant continued operating (SN: 4/7/79).) "Companies that traditionally shied away from mentioning nuclear energy as part of their portfolio, because they were concerned about public perceptions and potential policy blowback, are coming forward and embracing it," says nuclear engineer Koroush Shirvan of MIT. Commercial nuclear reactors in the United States generally use the same type of uranium fuel and are cooled by water. But many small modular reactor designs break that mold. The uranium used in reactors is enriched to include more of the relevant variety, or isotope, of uranium, U-235. Current reactors use uranium enriched to a few percent U-235. Many small modular reactors would use uranium enriched up to 20 percent U-235, known as high-assay low-enriched uranium, or HALEU (SN: 7/3/24). The fuel allows small modular reactors to run more efficiently than a reactor with conventional fuel. The United States doesn't produce HALEU commercially in significant quantities, but efforts have begun to rev up, in anticipation of the need. Some reactors use fuel that's different in more obvious ways, too. X-energy and Kairos, for example, will use TRISO fuel: encapsulated, poppy seed-sized pellets of uranium contained within larger spheres of material, each the size of a tennis ball. The fuel is "extremely robust to very high temperatures for very long times," Huff says. "It gives you this extra layer of defense." The coolant, the medium used to transfer heat from the reactor to the power generation portion of the plant, is a crucial choice as well. TerraPower uses liquid sodium, Kairos uses molten fluoride salt, and X-energy uses helium gas. Different coolants can have advantages such as an increased efficiency of heat transfer, or eliminating the need for pressurized vessels. The designs also incorporate safety features that don't require human intervention to kick in, helping to ensure the reactor can shut down safely in an emergency. They harness simple physics, for example, relying on gravity, pressure differences or the natural convection of liquid coolant, to cool the core. The concept of small modular reactors has been around for many years, but previous attempts haven't panned out. Even recent efforts have stumbled. The reactor company NuScale was set to produce the first commercial small modular reactors in the United States, as part of a project in Idaho, but the project was cancelled in 2023 after costs ballooned. Now, with big tech companies throwing themselves into the mix, proponents are hopeful that small modular reactors will be getting off the ground soon. "You can see the momentum building," Allen says. "It doesn't mean you're going to have a new commercial version this year, but it's also way more stuff going on that feels real than we've seen in nuclear for a very long time."

Big Tech Is Betting on Nuclear Energy to Fuel A.I. Ambitions -- But There's One Problem

Some small modular reactors are "not going solve anything in the 2020s." A new generation of nuclear producers, called small modular reactors (SMRs), are attracting the attention of Big Tech companies as they scramble to balance climbing power demands stemming from A.I. projects with clean energy goals. These small reactors have a power capacity of 300 megawatts -- enough to power roughly 250,000 U.S. homes -- and are about a third the size of the traditional nuclear reactor. Ideally, SMRs can be built in a process similar to an assembly line and easily put together at the site. But the cost of spearheading a first-of-its-kind project, coupled with a shaky regulatory environment, threatens efforts to commercialize the technology in the U.S. Sign Up For Our Daily Newsletter Sign Up Thank you for signing up! By clicking submit, you agree to our <a href="http://observermedia.com/terms">terms of service</a> and acknowledge we may use your information to send you emails, product samples, and promotions on this website and other properties. You can opt out anytime. See all of our newsletters The development of large language models, which demand and consume enormous amounts of energy, has set off a scramble among Big Tech firms to secure more clean power. The U.S. is the fastest growing market for data centers, according to McKinsey, which forecasts demand to more than triple by 2030 to 80 gigawatts annually. All this demand is disrupting already strained efforts to move towards a carbon-free grid. The Department of Energy estimates the U.S. will need approximately 700-900 gigawatts of additional clean power generation capacity to reach net-zero emissions by 2050. Several Big Tech firms have recently signed agreements with nuclear providers: Microsoft (MSFT) signed a deal to reopen a defunct nuclear plant in Pennsylvania; Amazon (AMZN) has inked three contracts to secure nuclear power in Virginia and Washington state; and Google (GOOGL) has signed an agreement with the startup Kairos Power to bring up to 500 megawatts of clean power to U.S. electricity grids, with the first reactor planned to be operational by 2030. Some experts say nuclear has significant potential to contribute to decarbonization in some countries. But it will require overcoming hurdles, from public mistrust to underinvestment, Rafael Mariano Grossi, Director General at the International Atomic Energy Agency (IAEA), said at a conference this week. "Nuclear technologies are particularly well suited for data centers given their ability to provide resilient, 24/7 electricity," a Department of Energy (DOE) spokesperson told Observer. "A timeline earlier than 2030 just isn't realistic." Experts in the energy industry generally agree that SMRs are far from achieving commercial status. Currently, there are just three operating SMRs in the world; none in the U.S. Some small modular reactors are "not going solve anything in the 2020s," Matt Garman, the CEO of Amazon Web Services, said Monday (Oct. 21) at the WSJ Tech Live event. "These are going to be the first of a kind, whichever manufacturer is first of the market with their product. It's still going to be a learning curve. There are going to be technical issues with deployment. There's going to be supply chain issues," Steve Piper, Research Director at S&P Global Commodity Insights, told Observer. "The time it takes just to get something new into the generation ecosystem is such that a timeline earlier than 2030 just isn't realistic." For many of the energy providers flirting with SMRs, the cost of managing a first-of-its-kind implementation is a serious obstacle. Last year, an effort by NuScale to deploy SMRs at a site in Idaho was canceled after the cost soared from $5 billion to $9 billion. Also last year, X-Energy was forced to pull a $1.8 billion deal to go public through a special purpose acquisition company due to "challenging market conditions." But the federal government is set on changing that. Last week, the DOE announced that it had opened applications for up to $900 million to support the initial deployments of SMR technologies. Some $100 million of that will be managed by the Office of Nuclear Energy, within the DOE, to spur additional deployments by "addressing key gaps that have hindered the domestic nuclear industry in areas such as design, licensing, supplier development, and site preparation." Still, the DOE spokesperson said the agency expect to get these projects operational in the 2030s. Meanwhile, the Nuclear Regulatory Commission (NRC), an independent government agency created by Congress, "has been actively involved in these sorts of reviews and preliminary discussions for years now," Scott Burnell, a NRC spokesperson, told Observer. Burnell said the permitting and review process for SMR projects does not differ greatly from that of larger, traditional nuclear plants. However, there are some major differences in the technology: Several leading SMR developers are exploring alternate cooling systems instead of water. Most companies are applying for permission to test their designs, Burnell said, indicating that commercial implementation is still far away. "I think that there have been a lot of reforms at the NRC to give them more scope, focusing specifically on the issue of nuclear to approve designs, approve modular designs, issue a construction and operating license at once," Piper of S&P Global Commodity Insights said. "These kinds of things can expedite the technical aspect once it goes forward. So the regulations might be ahead of where small modular reactors are, but at the same time, since it's new technology, any hitch in the process might slow things down."

Tech Giants Turn to Nuclear Energy to Power AI Technology

With a growing demand for data centers to power AI technology, tech giants such as Microsoft, Google, and Amazon have struck deals with nuclear power plant operators and developers. Through this, the companies are also looking to fulfill their carbon-negative commitment. Recently, Google revealed that it had signed "the world's first corporate agreement to purchase nuclear energy" from SMRs developed by California-based Kairos Power. Google CEO Sundar Pichai announced on X, "It's the latest step in our history of accelerating clean energy sources and will help support AI investments." Besides, Microsoft has also agreed to pay an energy company to revive Constellation Energy's shuttered Three Mile Island nuclear power plant in Pennsylvania. "This agreement is a major milestone in Microsoft's efforts to help decarbonise the grid in support of our commitment to become carbon negative," Bobby Hollis, vice president of energy at Microsoft, said in a statement. Even Amazon has joined the race for nuclear power by signing three agreements to develop nuclear energy projects. This includes deals with public utility conglomerate Energy Northwest, developer X Energy to build multiple SMRs in the region and an agreement with Dominion Energy in Virginia. "Nuclear is a safe source of carbon-free energy that can help power our operations and meet the growing demands of our customers while helping us progress toward our Climate Pledge commitment to be net-zero carbon across our operations by 2040," Amazon Web Services CEO Matt Garman said in a statement announcing the deals. Goldman Sachs Research estimates that data center power demand will grow 160% by 2030. Additionally, the International Energy Agency (IEA) projects global electricity consumption from data centers and AI will double from 460TWh in 2022 to over 1,000TWh by 2026. However, analysts also point to the supply chain constraints that might come up with Nuclear energy sources. The U.S. government has banned uranium imports following Russia's 2022 full-scale invasion of Ukraine. It is also probing whether China is reported buying Russia's nuclear power and exporting its own production to the U.S. As the energy demands of data centres, which power every critical digital infrastructure and technologies like generative AI, 5G, Io, etc., these reactors or SMRs are a critical move towards clean and sustainable data centres powered by safe nuclear energy. "A normal data centre needs 32 megawatts of power flowing into the building. For an AI data centre, it's 80 megawatts," says Chris Sharp, CTO at Digital Realty, a US data centre giant. Oklo's reactors powered by nuclear fission energy stand as a viable option for data centres as they can generate 15MW each and can function for a minimum of 10 years before requiring refuelling. Equinix intends to purchase power from Oklo's upcoming SMR installations to fuel its US data centres. It will possess the first option for 36 months to acquire between 100MW and 500MW of cumulative capacity from specific Oklo powerhouses. Additionally, smaller microreactors, with capacities ranging from 1 to 20 MW, are being developed specifically to power data centres and industrial sites. Startups like Oklo aim to deploy factory-built microreactors by 2028 to meet these energy demands. Besides Oklo, several other US-based firms, including NuScale Power, Kairos Power, and X-energy, are actively developing small modular reactors (SMRs). Additionally, UK-based Rolls-Royce is also pursuing SMR technology. Owing to the latest advancements in GPUs such as NVIDIA's Blackwell and H100 Hopper series, innovations in AI and high-performance computing (HPC) are reaching new heights. Big tech companies like Oracle, AWS, and Google are readily adopting these GPUs to empower their AI infrastructure by making it faster and more efficient. For instance, Oracle has announced plans to deploy a supercluster featuring 130,000 NVIDIA Blackwell GPUs to power advanced AI workloads. This far exceeds the capacity of traditional power grids and renewable energy sources alone. Oracle is building new data centers that will house such colossal infrastructure, which will include power from three SMRs. These reactors, with a capacity of up to 1 gigawatt, are designed to meet the immense energy demands of the data centers. How SMRs Could Save Money and Energy Small modular reactors (SMRs) are a type of nuclear reactor that can produce up to 300 MWs of electricity. They are smaller than conventional reactors and can be built in factories and transported to the site. They also have a subcategory called microreactors, which can produce up to 10 MWs of electricity. These reactors could be ideal for Microsoft, as their data centres have similar power requirements. SMRs have several advantages over conventional reactors. They are modular, which means they can be assembled and installed quickly and easily. They are said to be cost-effective, as they require less capital investment and maintenance. A 300 MW SMR costs about $900 million to $1 billion to build, while Microsoft pays about $7-8 million in electricity bills for each data centre per year. By switching to nuclear power, Microsoft can save money and reduce its dependence on fossil fuels. According to Oracle founder Larry Ellison, the company plans to build a gigawatt-scale data center powered by three small nuclear reactors (SMRs). It is fulfilling its strategy of obtaining unprecedented processing power, supporting zettascale computing with NVIDIA's latest GPUs, while reducing its carbon footprint. On October 8, OpenAI announced via X that its team received the first engineering builds of Nvidia's DGX B200. These new builds promise three times faster training speeds and fifteen times greater inference performance than previous models. While GPUs are fuelling massive growth for NVIDIA thanks to the burgeoning demand from AI companies, the costs incurred by these companies don't end with just GPUs. The energy cost of running these GPUs in data centres is enormous. Recently, a study showed that data centres consumed approximately 1,000 kWh per square metre, which is about 10x the power consumption of a typical American household. BLOOM, an LLM, utilised 914kWh over an 18-day period while running on 16 NVIDIA A100 40GB GPUs, managing an average of 558 requests/hour. Facebook co-founder Dustin Moskovitz, OpenAI CEO Sam Altman, and Peter Thiel's Mithril Capital have invested in Helion Energy, a Washington-based nuclear research company. After the funding round, Sam Altman enthusiastically spoke about Helion in his blog. "Helion has a clear path to net electricity by 2024 and has a long-term goal of delivering electricity for 1 cent per kilowatt-hour," he noted. "My bet is on fusion boilers to retrofit and replace coal and natural gas boilers rather than building whole new fusion or nuclear plants. There are additionally promising efforts using geothermal, solar and advanced battery systems for clean, dispatchable electric power. Multiple vectors are driving down the environmental cost of compute." He further adds that advancements in algorithmic efficiency and hardware innovation enable AI systems to deliver greater performance while using considerably less power. "New techniques and the integration of web search functions are helping AI scale more effectively without drastically increasing energy consumption. This push for optimized compute not only supports the growing energy demands of AI but also ensures that this technology can expand sustainably without straining global infrastructure," he further added. "When you look at a data center, in my view, you would still think about the mix of renewable and potentially gas," says Som Shantanu, Asia Engineering Leader, Gas Power, GE Vernova. He goes on to say that the main challenge with nuclear energy lies in its turnaround time. If a nuclear project is initiated, the process is long-term and may take several years.Additionally, nuclear plants often lack the flexibility to adjust their output as rapidly as gas or renewable energy sources. As a result, gas and renewables look more advantageous to nuclear energy.

Why Big Tech is going for the nuclear option to power its AI ambitions

As demand for AI increases, so does the demand for solutions on how to power it. Big Tech is betting on nuclear energy but the move is raising concerns. Three Mile Island, a US power plant infamous for a nuclear meltdown in 1979, is getting a restart and a rebrand to fuel artificial intelligence (AI) endeavours. The reason behind this change in fortunes? None other than the multi-billion-euro tech behemoth, Microsoft. Under a deal announced in September with power giant Constellation Energy, which owns part of the nuclear facility, Microsoft will use carbon-free energy from the plant to power its data centres. To add to this agreement, Constellation Energy announced it will launch a rebrand of the island as the "Crane Clean Energy Center". "This agreement is a major milestone in Microsoft's efforts to help decarbonise the grid in support of our commitment to become carbon negative," Bobby Hollis, Microsoft's Vice President of Energy, said in a statement, explaining the significance of this purchase as part of the company's larger long-term energy goals. It marks the beginning of what could be a renaissance for nuclear energy thanks to the soaring demand for power-hungry AI. In recent weeks, Big Tech giants Google and Amazon have both announced they will use mini nuclear reactors to power their data centres. But why, when nuclear sites are increasingly being wound down, are they seeing a rebirth? 'Relatively free energy' Microsoft's usage of nuclear energy on such a wide scale is part of an urgent push in the US toward renewable energy. Graham Peaslee, professor emeritus of physics at the University of Notre Dame, emphasised the massive amount of power needed to fuel AI. He added that if the US wants to stay "in the lead in AI," it will need significantly larger server farms, which require a lot more power. "AI in the next century will be driven by these huge computer farms," he said. "The computers are getting smaller and smaller, but the fact is that they need a football-sized field building to hold all of them, and they need enough electricity from a nuclear power plant to run them all". The agreement is also an economical decision, Peaslee said. Building new plants could cost billions of dollars while restarting former plants is much more cost-efficient. Peaslee speculated that other corporations would follow suit if Microsoft were successful, a prediction that is already being borne out by subsequent announcements from Google and Amazon. "Once a nuclear plant is constructed, it's relatively free energy," he added. The relaunching is set to have groundbreaking economic and environmental impacts. Experts expect Microsoft to benefit monumentally, as the success of the project would create enough power for 800,000 homes. The US would likely see thousands of direct and indirect jobs created, hundreds of millions of dollars in state tax revenue, and more than 800 megawatts of carbon-free electricity generated, according to thePennsylvania State Building & Construction Trades Council, whose members maintain and create the infrastructure in commercial and industrial industries. Bid to calm concerns In 1979, the plant in Pennsylvania was the site of the worst commercial nuclear incident in US history, when its Unit 2 reactor experienced a partial meltdown before going offline. Though parts of the plant eventually recovered from the incident, there are still concerns regarding the safety of the plant and the practicality of Microsoft's endeavours. Though the affected Unit 2 reactor is still in the decommissioning phase, the deal with Microsoft would see the re-opening of the plant's Unit 1 reactor, which operated safely and independently until 2019. Charles McCombie was initially a front-end reactor specialist in the UK and Switzerland and is now a radioactive waste management expert. He believes the relaunching is a wise and sensible move for Microsoft and an excellent source of firm energy, or energy guaranteed to be available. "[The] impact of Three Mile Island, technically and physically and health-wise, is vastly overestimated, particularly in the USA," McCombie said. "Of course, anything that happens in America has a worldwide impact". However, nobody died in the partial meltdown and parts of the plant went on to operate successfully for decades to come, McCombie emphasised. The US is not the only country moving forward in nuclear energy. McCombie classified nuclear energy as a positive "upward trend," at the moment, one that countries all over the world - in the West, Asia, Africa, and South America - are following. These countries, he said, are all in the process of increasing their nuclear fleets for different reasons. "The most important one [reason] from my point of view as a nuclear enthusiast, is the environmental part," McCombie added. "Nuclear plants have finally been recognised by the European Union and by the governments as being clean - a big, important word". McCombie also touched on the gigawatt challenge. Data centre demand in the US will double by 2030 to accommodate the power needs of AI, according to data from the US Data Center. In other words, the rapid expansion of data centre capacity needed to power AI means that the US must provide 35-gigawatt of power to fulfill soaring demand. Is Europe playing catch-up? McCombie's observations highlight a larger cross-continental conversation about the role of nuclear energy in Europe over the last year, as well as more widespread concerns about nuclear waste. In March, Europe saw its first Nuclear Energy Summit, where 14 of the EU's 27 heads of government gathered to discuss the future of nuclear energy and a potential re-incorporation of nuclear energy operations. During the convention, Internal Market Commissioner Thierry Breton proposed the EU Nuclear Technologies Act, a piece of legislation that would attempt to proactively develop this sector in Europe. Though the EU must overcome financial barriers and other issues, the summit was a progressive and promising beginning for more intentional steps towards widespread firm energy in Europe. The European Economic and Social Committee held a conference on October 17 to assess the latest scientific developments regarding nuclear energy and waste and also discuss allowing local communities to "have their say". Conversations are ongoing. McCombie said the appetite for nuclear power has "massively increased" over the last few years, indicating that the US will not be the only player on the world stage of nuclear-powered data centres in the future. One example, he said, is Finland, a country making advances in radioactive waste disposal. In 2021 alone, nuclear power amounted to 33 percent of Finland's total electricity generation, according to the International Energy Agency (IEA). "Geological disposal facilities" are currently being implemented to deal with the waste generated, he added. This includes sites like Onkalo, a vault cut 450 m deep in the bedrock of a Finnish island where used radioactive rods will be housed for the next 10,000 years. It remains a waiting game to see if the rest of Europe will follow suit with nuclear energy should the project succeed and perhaps get up to par with nuclear-powered AI.

3 Stocks Poised to Benefit as Big Tech Leans on Nuclear to Power AI Ambitions | Investing.com UK

Looking for actionable trade ideas to navigate the current market volatility? Unlock access to InvestingPro's AI-selected stock winners for under $9 a month! AI's growing demand for energy is breathing new life into nuclear power, putting it back in the spotlight. In a strategic move, Microsoft Corporation (NASDAQ:MSFT) secured a deal with Constellation Energy (NASDAQ:CEG) to revive the Three Mile Island nuclear plant, tapping into its power to fuel their data centers. This shift marks the beginning of Big Tech's pivot toward nuclear energy, driven by AI's insatiable need for electricity. Amazon (NASDAQ:AMZN) and Alphabet (NASDAQ:GOOGL) (NASDAQ:GOOG) aren't far behind. Both have announced plans to power their data centers with small modular nuclear reactors (SMRs), signaling a broader trend as companies race to secure energy alternatives. With the U.S. and China vying for dominance in AI, the demand for reliable power sources like nuclear will only accelerate. As a result, nuclear power stocks and uranium -- a critical resource for nuclear energy -- have surged. But which stocks are best positioned to ride this wave and capitalize on Big Tech's investments? Let's dive into three companies that could benefit the most. Vistra Energy (NYSE:VST) boasts a diverse energy portfolio, which includes natural gas, solar, battery storage, and nuclear power. With a capacity of about 39 GW, the Texas-based company is well-positioned to meet the growing demand for clean energy solutions. Analysts surveyed by Investing.com project a 12.1% upside, with a target price of $141.41, up from $126.11 on Oct. 23. The stock holds strong ratings with 14 buy recommendations and only 1 sell. As AI's energy needs soar, these companies stand to benefit from the renewed focus on nuclear power, making them ones to watch in the coming years. Xcel Energy (NASDAQ:XEL) is another player poised to benefit from the surge in nuclear demand. Based in Minneapolis, the utility giant has a market cap exceeding $35 billion and aims to achieve 100% carbon-free electricity by 2050. This ambitious goal will drive its reliance on nuclear energy, making it a key beneficiary of the shift toward clean power. Analysts forecast a 6.8% gain, setting a target price of $68.73, up from its recent close of $64.32 on Oct. 23. The stock has an "Outperform" rating with 10 buy and 8 hold recommendations. Constellation Energy is at the forefront of this nuclear revival, thanks to its landmark deal with Microsoft. Since its 2021 launch in Baltimore, the company has rapidly expanded, supplying energy to nearly 2 million customers across the U.S. through a mix of nuclear, wind, solar, natural gas, and hydroelectric plants. With a market cap of over $83 billion, Constellation is well-positioned to grow. Despite a 50% rally in the past three months, analysts see further upside potential, estimating a 5.7% increase from its recent close at $266.05 on Oct. 23. The stock holds strong support with 13 buy and 6 hold ratings. ***

European Alliance Calls On EU To Reconsider Nuclear Power Policies - Constellation Energy (NASDAQ:CEG), Amazon.com (NASDAQ:AMZN)

The European Nuclear Alliance has called upon the European Commission to consider nuclear energy as "essential contributors" to decarbonization pathways in Europe. "We strongly encourage the upcoming college of Commissioners to deliver a paradigm shift in our energy policy," the alliance said at the Energy Council meeting held in Luxembourg on October 15. The commission should recognize the role of nuclear energy, alongside renewables, "for the future of our integrated energy system," it added. The alliance comprises 12 members, including Bulgaria, Croatia, Czech Republic, Finland, France, Hungary, Netherlands, Poland, Romania, Slovakia, Slovenia, and Sweden. However, some experts have argued for a faster deployment of cleaner alternatives. They cite the environmental risks associated with nuclear energy and the disposing of reactor waste. European Union (EU) states, like Germany and Spain, have pushed to keep nuclear out of EU renewable energy goals. They have warned that taking into account low-carbon energy would slow down the deployment of renewables. "Without such energies, there is no path for the EU to provide to its citizens affordable, reliable and abundant low-carbon energy," the alliance said. The EU must also compete against a U.S. and China. The world's two biggest economies plan to construct several new conventional and small modular reactors. Source: World Nuclear Association, Reactors Under Construction by Region (1950-2030) Nuclear Power Could Satisfy Demand For AI, Data Centers With demand from data centers and artificial intelligence (AI) increasing the need for electricity generation, big tech is jumping into the nuclear option. US-based tech giants Amazon AMZN and Google GOOGL announced their investment in small modular reactors (SMR) on October 16. Amazon's cloud computing subsidiary, AWS, committed more than $500 million in a partnership with Virginia's utility company, Dominion Energy D. Last month, Constellation Energy CEG announced plans to reopen the Three Mile Island nuclear power plant under a 20-year agreement with Microsoft MSFT. The tech giant aims to supply its data centers with carbon-free energy. The Pennsylvania plant was the site of the U.S.' worst commercial nuclear power accident in 1979, with a partial meltdown that destroyed one of two reactors. Biden Administration Pushes For Nuclear Power The Constellation-Microsoft agreement comes amid a push by the Biden administration to reconsider using nuclear power to limit greenhouse gas emissions from the power sector. In 2023 alone, nuclear plants generated 2602 TWh of electricity, with around a third, 772.2 TWh, attributed to the U.S. The push for nuclear is having a positive impact on ETFs and companies operating in this emerging space. The VanEck Uranium and Nuclear ETF NLR, which comprises miners, industrial companies that make reactor components and industrial exposure to nuclear, has returned approximately 20% in the last month. Oklo OKLO, Sam Altman's start-up, has surged around 240% in the same period. Source: Benzinga, Oklo Stock Price (30-day) European Investments In Nuclear Power Following Russia's invasion of Ukraine in 2022, Europe's need to invest in nuclear energy has accelerated, according to a survey published in December 2022. The Flash Eurobarometer 514 survey showed that 58% of EU respondents believed member states should invest in nuclear. As the demand for low-carbon energy surges, Europe is investing heavily in nuclear energy. However, the UK and France are in the lead. The UK announced a "major acceleration of homegrown power" to "boost long-term energy independence, security and prosperity." In the UK, reactors generate about 15% of electricity at 6.5 GW. The government plans to increase this usage to 25% or up to 24GW by 2050. In France, 70% of electricity already comes from nuclear energy. In 2023, the French government abandoned plans to reduce nuclear energy. It instead is focusing on building six new reactors. Nuclear Power Plants in France, Source: World Nuclear Association Hungary, the Czech Republic, and Poland are also investing in new nuclear projects. Nuclear Power Investment Uncertainty The EU's plans to dramatically increase nuclear power could face financing challenges. Finance Watch about a substantial funding gap. It pointed to high levels of EU debt, fiscal constraints, and uncertainties surrounding the future structure of the electricity market. EU Climate-Financing Gap, Source: Bloomberg With the funding gap, the EU nuclear industry could only meet its target of increasing energy capacity by 50%. Nuclear energy accounts for almost one-quarter of the electricity produced in the EU and 50% of the low-carbon electricity. Disclaimer Any opinions expressed in this article are not to be considered investment advice and are solely those of the authors. European Capital Insights is not responsible for any financial decisions made based on the contents of this article. Readers may use this article for information and educational purposes only. This article is from an unpaid external contributor. It does not represent Benzinga's reporting and has not been edited for content or accuracy. Market News and Data brought to you by Benzinga APIs

Big Tech is driving a nuclear power revival, energy guru Dan Yergin says

In this aerial view, the shuttered Three Mile Island nuclear power plant stands in the middle of the Susquehanna River near Middletown, Pennsylvania, on Oct. 10, 2024. Nuclear power may be making a comeback in the U.S. after years of setbacks -- and big tech is the driving force. As tech giants like Microsoft, Amazon and Google compete to take the lead in the AI revolution, the data centers needed to power the burgeoning technology consume an ever-increasing amount of energy. In the last two months, those three companies have penned deals to generate more nuclear power -- perhaps most notably, Microsoft struck a 20-year agreement with Constellation Energy to restart a reactor at Three Mile Island in Pennsylvania, the site of the most serious nuclear meltdown in U.S. history in 1979. The reopening is planned for 2028. Speaking to CNBC at the annual International Monetary Fund meetings in Washington, long-time energy market veteran Dan Yergin described the turnaround as nothing short of extraordinary. "It's amazing, the change. The nuclear industry was in the doldrums," Yergin told CNBC's Karen Tso on Tuesday, describing the reopening of the Three Mile Island power plant as "symbolic." "Big Tech is saying, 'We need reliable 24 hour electricity. We can't get it just from wind and solar'," he said. Yergin, who has written several books on energy including "The Prize" and "The New Map," pointed to the booming funding going into the sector. He cited $7 billion in venture capital going into nuclear fusion alone -- which does not include financing for nuclear fission, a different energy-generating process. "This is a really big change, and it reflects in this country, in the United States, a sense that -- we've had for, really, a generation of flat demand [for] electricity," Yergin said. "Now it's going to grow, and there's real anxiety about, how do you grow it? And nuclear [energy] is back in form, and people are talking about small nuclear reactors. And, of course, you have big tech actually seeking to contract for the output of the electricity from existing nuclear power plants. It's an amazing change."

Opinion | Nuclear power could rise again

Building out nuclear power will be critical for the project of combating climate change. Nuclear energy is getting another chance. In short succession over the past few weeks, three of the nation's tech goliaths announced eye-catching investments in nuclear projects to secure low-carbon electricity for artificial intelligence data centers. First, Microsoft committed to buy 20 years' worth of power from the shuttered Three Mile Island facility in Pennsylvania, site of an infamous disaster in 1979 that arrested nuclear development in the United States. Then Google cut a deal with California-based Kairos Power to develop a series of high-tech small modular reactors. And Amazon announced it is funding another cutting-edge nuclear firm, X-energy, to develop and license its own line of SMRs. (Amazon founder Jeff Bezos owns The Post.) The flurry of activity, just a few months after the long-delayed opening of the Vogtle 4 light-water reactor, which started providing electricity to Georgia's power grid in April, suggests that nuclear power, long shunned as either too dangerous or too expensive, might be reemerging as an essential tool in the battle against climate change. Still, it will take more than a handful of deals with Big Tech to transform nuclear into a viable, economical source of clean energy at scale. According to an Energy Department analysis, meeting the promise to produce zero net carbon emissions by mid-century will require at least 200 additional gigawatts of nuclear power, tripling existing capacity. Nuclear power requires much less land than solar and wind farms. It can be located closer to where power is needed, reducing needed investment in long-distance transmission lines. Critically, it produces electricity all the time, not just when the sun shines and the wind blows. Follow Editorial Board Follow According to the DOE analysis, based on modeling of California's power system, including nuclear energy in the mix, along with other firm, non-variable sources of electricity such as geothermal and hydropower, would reduce the overall cost of decarbonizing the grid by 37 percent compared to relying on renewables and energy storage alone. The DOE recommends starting immediately. But hurdles remain. Developing a nuclear future will require selecting a technology to build out in order to develop the economies of scale, know-how and other efficiencies that will help contain costs. The enormous expense of the 20th-century nuclear deployment in the United States was largely because builders used over 50 unique reactor designs. Other countries with more standardized models built out nuclear energy much more cheaply. The several projects making headlines -- all reliant on different technologies -- do not settle this choice. Kairos is developing SMRs that use molten salt as a coolant. X-energy's SMRs use a gas coolant. Neither has gotten the green light from the Nuclear Regulatory Commission, nor has either been deployed commercially. SMRs are designed to be built in factories, to be assembled inexpensively on-site, and to be far more flexible in location and application than traditional nuclear plants. They are worth exploring, particularly if the experimentation leads the industry to coalesce quickly around one design. Meantime, utilities and the government already have a design they should be able to agree on, for the bigger, traditional nuclear facilities that the nation needs. The design of the two AP1000 light-water reactors deployed in the Vogtle plant in Georgia over the past two years, each boasting an output of 1.1 gigawatts, is a 21st-century version of the familiar nuclear plants people have been building for decades. The technology is better-designed and even safer, offering a promise of large amounts of power. Opponents point to Vogtle as proof that nuclear energy will always be too expensive. The two reactors, originally budgeted at $14 billion, ended up costing $32 billion after massive delays. But the cost overruns stemmed either from idiosyncratic mistakes -- such as an incomplete design when the project began -- or from problems that always come with first-of-a-kind construction, such as an immature supply chain and an untrained workforce. Future AP1000s will not be unique. As the Energy Department noted, the fourth Vogtle reactor was cheaper than the third. Despite higher interest rates, the DOE estimates that future AP1000 reactors could provide power at half the cost as the two most recent additions: as little as $60 per megawatt hour. Getting more built will probably require pooling demand, and that will likely require involving the federal government to either build reactors on its own or to offer insurance to cover cost overruns by the private sector. The technology itself matters less than the commitment to deploy it. That is essential for nuclear energy to rise again, which is in turn important for sustaining high standards of living as the world transitions off fossil fuels.

Nuclear sector faces thematic tailwinds from AI, onshoring: analyst

One analyst says he sees opportunities in nuclear stocks based on the theme of rising electricity demand amid broader enthusiasm for AI and data centres. Anthony Crowdell, a research analyst at Mizuho, said in an interview with BNN Bloomberg on Monday that electricity demand growth in the U.S. had been relatively flat for a period of around 15 to 20 years. "Now all of a sudden you throw in this data centre AI thematic coupled with the onshoring of manufacturing here and now it's been off to the races with utilities putting out demand growth numbers where again two to three years ago, we were zero to one per cent of demand growth," he said. "Now we have some utilities putting out numbers about nine per cent. So, it's just a step? change in the amount of load growth that we need and also a change in the generation needs that are required to meet this new load." Last week, Amazon announced it would be investing in small nuclear reactors to meet power demands from data centres and artificial intelligence. The announcement came just days after a similar one from Google. Bloomberg News also reported last month that Microsoft entered into an agreement to pay a premium to Constellation Energy to source clean power from the Three Mile Island nuclear plant when it is restarted. One of the companies Crowdell said he likes in the sector is Duke Energy. "A great way to define Duke is aggressive defense. It's one of the bellwethers in this space. It struggled for years, maybe with a weaker balance sheet and unregulated operations, (but) unregulated businesses are (now) all gone. It's the cleanest this story has been in 20 years," he said. "They built a nice credit cushion with the balance sheet and they operate very well in all their jurisdictions."