As data centres increase in size and number, their projected energy consumption will likely skyrocket, which could place immense pressure on existing energy resources and infrastructure.
To deal with the growing demands, nuclear energy is currently the favourite energy source for tech companies. Recently, on June 3, Meta announced a 20-year corporate nuclear energy agreement with Constellation Energy for the Clinton Clean Energy Centre to support next-generation and advanced energy technologies, including geothermal and nuclear.
Data centres are the foundation for driving AI innovations, housing the infrastructure that brings these technologies to life. Meta has stated that it prioritises efficient operations, ensuring that its electricity consumption matches 100% clean and renewable energy while actively exploring emerging technologies. In preparing for the future energy demands driven by AI development, Meta has recognised the value of nuclear power in providing reliable and stable electricity.
According to the company, the energy generated from this project will support Meta’s operations in Southern Illinois. Moreover, the company continues to advance its previously announced nuclear request for proposals (RFP) process. It is now in final discussions with a shortlist of potential projects aimed at meeting its target of securing between one and four gigawatts of energy capacity.
Illinois provides subsidies for Constellation Energy’s nuclear facility, the Clinton Clean Energy Centre, through a programme funded by ratepayers that issues zero-emission credits for electricity generation nearly free of carbon emissions, as reported by the Guardian. This program will end in 2027. At this point, Meta’s power purchase agreement will financially support the plant for relicensing and operational costs, although the exact amount remains unspecified.
The agreement permits Constellation to increase Clinton’s capacity, which currently stands at 1,121 MW, by an additional 30 MW. This facility generates enough electricity to supply about 8 lakh households in the US. Clinton commenced operations in 1987, and last year, Constellation submitted a request to the US Nuclear Regulatory Commission to extend its license until 2047.
Meta said in its statement that numerous nuclear power facilities in the US require ongoing assistance to ensure that our electricity grids stay dependable as energy demands increase. Maintaining the operation of an existing plant will have a similar beneficial impact as introducing new clean energy to the grid and will prevent the disturbances that have arisen when other nuclear units have closed earlier than planned.
In a related case, a nuclear reactor at the Three Mile Island facility in Pennsylvania was set to be activated for the first time in five years. This reportedly took place after its owners, Constellation Energy, reached an agreement in September 2024 to supply electricity for Microsoft’s expanding artificial intelligence initiatives.
Similarly, Google signed the world’s first corporate deal to purchase nuclear energy from small modular reactors (SMRs) developed by California’s Kairos Power in October 2024. This initiative aims to bring the first SMR online by 2030, with additional reactors by 2035. The agreement will provide up to 500 MW of new, 24/7 carbon-free power to US electricity grids, helping communities access clean and affordable nuclear energy.
According to Schneider, an analyst in digital infrastructure at Goldman Sachs Research, although renewable energy can satisfy a significant portion of the increased electricity requirements of data centres during specific times of the day, it does not provide a reliable enough power supply to serve as the sole energy source for these facilities, the report said.
“Our conversations with renewable developers indicate that wind and solar could serve roughly 80% of a data centre’s power demand if paired with storage, but some sort of baseload generation is needed to meet the 24/7 demand,” a Goldman Sachs report stated. It further mentioned that nuclear power is the preferred choice for a steady power supply, but the challenges associated with constructing new nuclear facilities make natural gas and renewables more feasible short-term alternatives.
Data centres, vital infrastructures that store large volumes of data and support crucial services, encounter various cybersecurity issues. As per reports, these issues involve defending against advanced attacks, adhering to regulatory requirements, handling intricate environments, and reducing risks associated with human factors. Similarly, nuclear facilities present significant risks to the environment.
The Three Mile Island facility was located where the region saw the worst nuclear meltdown and radiation leak in US history in March 1979, when a malfunctioning valve led to a loss of water coolant, causing the Unit 2 reactor to overheat. Even after over forty years, the reactor remains in a decommissioning stage.
Despite this, Joseph Dominguez, president and CEO of Constellation, told Guardian, “Before it was prematurely shuttered due to poor economics, this plant was among the safest and most reliable nuclear plants on the grid, and we look forward to bringing it back with a new name and a renewed mission.”
However, recent contracts for nuclear facilities and a growing interest in nuclear power indicate significant investment growth in the next five years, leading to increased energy supply in the 2030s.
The emergence of AI data centres is boosting investor confidence in electricity demand, prompting tech companies to seek reliable, low-carbon energy. This is resulting in the revival of retired nuclear plants and plans for new reactors, the Sachs report added.
In the US, major tech firms have signed contracts for over 10 GW of potential new nuclear capacity in the past year, with Goldman Sachs report predicting that three plants could be operational by 2030.
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