Contributed by Isaac Smith, Principal, PPM Consultants
In follow-up to my earlier article series on the surging electricity demand driven by U.S. data centers, the rapid evolution in energy sourcing has been impossible to ignore—especially the growing momentum behind nuclear energy. The dialogue is shifting from sustainability to survivability. As data centers multiply and AI models grow ever more power-hungry, the question isn’t just how to power them—but how to do so reliably, responsibly, and at scale. Nuclear power, long sidelined by regulatory hurdles and public perception, is re-emerging as a viable, low-carbon answer.
Why Nuclear, Why Now?
Traditional renewables like solar and wind will continue to play a critical role in the U.S. energy portfolio, but they cannot independently meet the constant, high-capacity demands of hyperscale data centers. Nuclear energy, with its ability to provide 24/7 baseload power with zero carbon emissions, is uniquely positioned to fill this gap. With AI data centers consuming 5 to 10 times the electricity of traditional ones, and national demand expected to grow from 25 GW in 2024 to over 80 GW by 2030, the urgency for reliable power is escalating.
Real-World Momentum
We’ve already seen the major tech players take steps. Microsoft inked a 20-year deal to purchase all the output from the decommissioned Three Mile Island Unit 1. Amazon has similarly moved next door to the Susquehanna nuclear plant. Meta recently secured a 20-year agreement with Constellation Energy to purchase 1,121 MW from the Clinton nuclear plant in Illinois—enough power to support tens of thousands of AI servers while also preserving over 1,100 jobs. These are not pilot projects; they are full-scale, commercially significant moves.
Federal and State Support
The Department of Energy recently released findings supporting the co-location of nuclear plants and data centers, citing advantages like uninterrupted baseload supply and compact footprints. President Trump signed executive orders to quadruple US nuclear capacity by 2030, in an attempt to meet soaring data center demand. Meanwhile, states like New York are doubling down. Governor Kathy Hochul announced a plan to build a 1 GW advanced nuclear facility to support future AI growth and grid reliability, marking the state’s first new nuclear plant initiative in decades.
Challenges Remain
While the case for nuclear power is compelling, hurdles remain, namely capital costs, regulatory complexity, and the time required to build and license new reactors. Even with advancements like small modular reactors (SMRs), a topic PPM’s CEO-Todd Perry wrote about in late 2024, issues such as fuel supply chains and waste management must be addressed. Nonetheless, the growing alignment between government policy, private investment, and power demand is encouraging.
Conclusion
The renewed interest in nuclear energy isn’t just a reaction, it’s a recognition that our digital economy, and by extension our environment, demands scalable, sustainable power. If public agencies, private companies, and regulators can align efforts, we have a real opportunity to not only meet but lead the energy needs of tomorrow.
Further Reading on This Topic
New York Plans for 1GW Nuclear Power Plant as AI Demand Grows
Advantages and Challenges of Nuclear-Powered Data Centers
Meta Signs 20-Year Nuclear Power Plant Deal to Power AI
Balancing Act: The Dual Influence of AI on Data Center Power and Sustainability