Why are Microsoft, Google, and Amazon Investing in Nuclear Energy, and How Does it Impact Global Warming?

The growth of global data volumes and the rapid development of artificial intelligence (AI) are creating a consistently high demand for data storage and processing in data centers. These changes, in turn, generate a significant demand for electricity, driving major technology companies (such as Microsoft, Amazon, and OpenAI) to actively invest in and develop energy sources. The International Energy Agency (IEA) forecasts that total electricity consumption by data centers could exceed 1,000 terawatt-hours by 2026, doubling from 2022 levels. Interestingly, one terawatt-hour can power 70,000 homes for a year. At this scale, nuclear energy could become a cost-effective solution for sustainably meeting the energy needs of tech companies. Additionally, nuclear energy generates virtually no carbon emissions, which at the very least does not worsen the climate change problem.

The operation of nuclear power plants is based on a controlled chain reaction of splitting heavy uranium or plutonium nuclei, releasing a large amount of thermal energy. Unlike fossil fuel-powered plants, nuclear reactors have the clear advantage of emitting no greenhouse gases during operation. This feature makes nuclear energy an appealing option for companies aiming to implement low-carbon energy solutions.

Another distinguishing feature of nuclear energy is its high density, allowing for the production of substantial electricity output with relatively low fuel input. A single fuel pellet weighing only 6 grams is equivalent in energy output to 3 barrels of oil (42 gallons each) and 1 ton of coal. This efficiency, combined with the continuous supply of electricity, makes nuclear energy an attractive option for meeting the energy needs of data centers operating 24/7.

Public opinion on nuclear energy remains a contentious issue due to concerns about safety, waste management, and potential accidents. Data center operators considering nuclear energy options must address these concerns through transparent communication, education, and risk mitigation strategies. Nevertheless, the development of nuclear energy is recognized as one approach to achieving global greenhouse gas reduction targets alongside renewable energy sources, as reflected in the final resolutions of the 28th Conference of the Parties to the United Nations Framework Convention on Climate Change.

Leaders of major companies, including OpenAI CEO Sam Altman and Microsoft co-founder Bill Gates, have stated that nuclear energy is a solution to growing energy demands. It is no coincidence that businesses are increasingly investing in the construction and expansion of nuclear energy capacities. For instance, in October of this year, Google announced a deal with Kairos Power to utilize nuclear reactors to produce the vast amounts of energy needed for AI data centers. A month earlier, Microsoft also signed an agreement to revive a reactor at the Three Mile Island nuclear plant in Pennsylvania. The rising demand for electricity and the fight against climate change may become a new stage in the development of nuclear technologies, leading to large-scale changes similar to those seen in 1951 in the U.S., when the first electricity was generated from nuclear fission.