Data centers, AI applications, and cryptocurrency mining are driving a surge in electricity consumption worldwide. In 2022, these sectors accounted for 2% of global electricity use, a figure projected to double by 2026, according to the International Energy Agency (IEA).

New Delhi (ABC Live): With the rising electricity demands of data centers, artificial intelligence (AI), and Cryptocurrencies operations, major technology companies are increasingly looking to advanced nuclear technologies, such as small modular reactors (SMRs), to provide clean, reliable, and flexible energy. This shift may pave the way for the commercialization of SMRs and advanced reactors in emerging markets.

The Growing Energy Demand of Tech Industries

Data centers, AI applications, and cryptocurrency mining are driving a surge in electricity consumption worldwide. In 2022, these sectors accounted for 2% of global electricity use, a figure projected to double by 2026, according to the International Energy Agency (IEA).
For instance, the combined electricity consumption of Amazon, Microsoft, Google, and Meta more than doubled between 2017 and 2021, reaching about 72 terawatt-hours (TWh). Data centers alone consumed 460 TWh in 2022, with projections estimating this figure could exceed 1,000 TWh by 2026—equivalent to over a third of the total electricity generated by nuclear power plants globally.

Decarbonization and Energy Solutions

Tech companies face dual pressures: meeting growing energy demands and achieving decarbonization targets, driven by legislation and sustainability commitments. While renewable sources like solar and wind are part of the solution, advanced nuclear technologies are emerging as key players due to their ability to deliver firm, dispatchable, and carbon-free power.

“In some regions, advanced nuclear deployment may depend on adoption by major tech companies,” says Aline des Cloizeaux, Director of the IAEA’s Division of Nuclear Power. “SMRs and other advanced reactors can provide the low-carbon, reliable energy these companies need.”

Regional Trends in Energy Demand

• In China, electricity demand from data centers is expected to double by 2030, reaching 400 TWh.
• In the northeastern United States, data centers are becoming a significant driver of electricity demand.
• In Ireland, data centers consumed 5.3 TWh in 2022, accounting for 17% of the country’s electricity use. This figure could rise to 32% by 2026 as AI adoption grows.

Corporate Interest in Advanced Nuclear

Tech giants like Google and Microsoft are exploring how advanced nuclear power can align with their energy and sustainability goals.

• Google: “Firm, carbon-free electricity technologies like advanced nuclear are critical to cost-effectively decarbonizing energy consumption,” says Devon Swezey, Senior Manager in Global Energy and Climate at Google.
• Microsoft: A recent policy brief highlights the role of advanced nuclear in achieving decarbonization and advocates for accelerated research, regulatory innovation, and private sector engagement.

Private Sector-Driven Deployment

Advanced nuclear technology providers are taking note of this interest. “Nuclear energy is the ideal solution for clean and reliable baseload power,” says Bret Kugelmass, CEO of Last Energy. SMRs and microreactors, with their lower upfront costs, shorter construction times, and modular design, are particularly well-suited for private industry adoption.

Kugelmass envisions a transformative model for nuclear power: “Packaging nuclear in smaller, modular units makes it affordable and allows projects to rely solely on private funding, unlocking the full potential of nuclear energy at scale.”

A New Era for Nuclear Energy

By turning to advanced nuclear, tech companies not only address their own energy and decarbonization challenges but also help accelerate the deployment of these technologies. Collaborative efforts between tech giants, advanced nuclear providers, and policymakers could establish a sustainable energy pathway, ensuring 24/7 clean power for both industry and society.