As artificial intelligence (AI) advances, it is causing energy consumption to skyrocket, especially in Big Tech data centers. Companies like Amazon, Microsoft, and Google are now seeking new energy solutions. One of these solutions is nuclear energy, particularly through small modular reactors (SMRs). These reactors are designed to meet the high demands of AI-driven operations.
George Gianarikas, Managing Director at Canaccord Genuity, recently discussed this growing trend with Yahoo Finance. He highlighted companies like NuScale Power (SMR) and ASP Isotopes (ASPI) as major players in nuclear energy. Gianarikas pointed out that utilities are beginning to invest in nuclear reactors. They’re signing power agreements with hyperscale data center operators like Google and Amazon.
However, Gianarikas also noted a significant issue. “The U.S. energy grid isn’t prepared to deal with surges in electricity consumption that AI requires,” he said. Nuclear energy, particularly from SMRs, offers a solution. It provides a consistent, scalable energy supply to meet these demands.
Why AI Needs So Much Power
AI requires enormous amounts of energy to run data centers. These centers handle data processing, machine learning, and other high-level tasks. They need large amounts of electricity not just to operate but also to keep servers cool. Traditional energy sources, like natural gas or coal, often struggle to provide this power without interruptions. Renewables like solar or wind, while helpful, are also inconsistent. Nuclear reactors, however, offer stable, uninterrupted power, making them ideal for AI.
Big Tech’s move to nuclear energy is not without challenges. Building nuclear reactors requires approval from regulatory bodies like the Nuclear Regulatory Commission (NRC). Gianarikas pointed out that NuScale Power has already received this approval. This positions them as a key player in the energy landscape.
NuScale Power is developing reactors that are smaller and cheaper than traditional nuclear plants. These reactors are safer and faster to build, offering flexibility to meet varying energy needs. For Big Tech, SMRs could solve a significant part of the energy puzzle.
The Role of Uranium
For nuclear reactors to work, they need enriched uranium. This is where ASP Isotopes plays a vital role. ASP Isotopes enriches uranium by taking raw material from mines and isolating the isotope needed for nuclear reactions. They then sell this to reactor manufacturers like NuScale. Without enriched uranium, the entire process would fail. Gianarikas noted the importance of this supply chain in making nuclear reactors a viable option for energy.
Small Modular Reactors: Why They Matter
While nuclear power is not new, small modular reactors (SMRs) are changing the game. Traditional nuclear plants take many years to build and are extremely costly. SMRs, however, are faster, cheaper, and more scalable. They generate less power individually but can be added together to meet increasing energy demands.
This is perfect for AI data centers. Data centers vary in size and location, and SMRs can be deployed based on the specific needs of a facility. Their energy output is consistent, which is crucial for data centers that can’t afford power interruptions.
Tech Giants Are Going Nuclear
Google has already embraced nuclear energy. The company recently partnered with Kairos Power, a startup focused on developing small modular reactors. This move reflects a broader trend in the tech industry. Big Tech companies need reliable and scalable energy sources to power AI operations. While renewable energy remains part of the mix, nuclear energy is proving to be a stable backup.
SMRs, in particular, provide the reliability that AI demands. Renewables like wind or solar may fluctuate, but nuclear energy delivers steady, uninterrupted power. This makes it ideal for powering the 24/7 operations of data centers.
The Future of Nuclear Power in AI
As AI continues to grow, energy demands will increase. Big Tech companies like Google, Amazon, and Microsoft are driving the adoption of nuclear solutions. Companies like NuScale Power and ASP Isotopes are providing the technology to make this possible.
Nuclear reactors, particularly SMRs, are not just an emerging space. They are becoming essential for the future of AI. With growing investments, nuclear technology will likely play a key role in meeting the world’s future energy needs.
