Data Centers and Nuclear Energy in 2024
In 2024, the landscape of data center power sources is undergoing a significant transformation, with many tech companies turning to nuclear energy to meet their growing electricity demands. This shift is driven by the need for reliable, carbon-free power to support the ever-increasing energy consumption of data centers as that sector grows to support artificial intelligence (AI) along with the already considerable need for cloud and other advanced technologies.
Google & Kairos: Google has taken a bold step by signing a deal with nuclear startup Kairos Power to build seven small modular reactors (SMRs) to supply electricity to its data centers. This agreement aims to add around 500 megawatts of carbon-free electricity by the end of the decade, if they can hold to their aggressive schedule and meet regulators’ standards. These SMRs will use molten salts of lithium fluoride and beryllium fluoride for cooling, a departure from traditional water-cooled reactors. This design approach is expected to lower costs and speed up construction, however the operations and maintenance may pose unforeseen challenges.
Amazon & X-Energy: Amazon is also making significant strides in nuclear power for data centers, with an agreement to develop SMRs with X-Energy. This includes development with Energy Northwest in the state of Washington and Virginia with Dominion Energy, aiming to eventually bring more than 5 gigawatts of nuclear power online before 2040. These projects will provide a substantial amount of clean energy, enough to power perhaps 50-100 of the typical AWS data centers.
Constellation Energy: Constellation Energy is aiming to restart a reactor at the Three Mile Island site, which was shut down in 2019. This project is part of a broader strategy to secure reliable, emissions-free power for data centers that may be developed locally as well as across the greater grid.
Benefits of Nuclear Power for Data Centers
Nuclear power offers several advantages for data centers:
- 24/7 Reliability: Unlike renewable sources like wind and solar, nuclear power provides a constant, uninterrupted power supply that better matches the demand of AI and development data centers.
- Carbon-Free Energy: Nuclear power generates electricity with minimal greenhouse gas emissions, aligning with the sustainability goals of tech companies.
- Economic Viability: SMRs are designed to be more cost-effective and quicker to build than traditional large reactors, making them an attractive option for tech companies.
- Scalability: Microreactors can be scaled to meet the specific energy needs of a building or campus, providing a reliable and consistent power supply.
On Small Modular Reactors
Nuclear power is increasingly being considered as a viable energy source for buildings and campuses, thanks to the development of advanced nuclear microreactors and small modular reactors. These reactors are smaller, more flexible, and can be integrated into existing energy systems with minimal disruption. Generation III+ Small Modular Reactor (SMR) is a type of nuclear fission reactor designed to be more efficient, safer, and cost-effective than previous generations.
- Light Water Coolant: Uses light water as a coolant and low-enriched uranium as fuel.
- Power Output: Typically has a single-unit net electrical power output ranging from 50 to 350 megawatts electrical (MWe).
- Factory Fabrication: Designed to maximize factory fabrication, which reduces construction time and costs.
- Safety and Security: Incorporates advanced safety, security, and environmental benefits compared to traditional large reactors.
- Modularity and Scalability: Can be scaled to meet specific energy demands and can be deployed in multiple units.
These reactors are part of the U.S. Department of Energy’s efforts to support the deployment of advanced nuclear technologies to meet the growing demand for clean, reliable power.
Current research projects:
- University of Illinois at Urbana-Champaign: The university is planning to apply for a construction permit for a high-temperature, gas-cooled reactor developed by Ultra Safe Nuclear Corporation. The goal is to start operating it by early 2028, providing dedicated power to the campus.
- Purdue University: Purdue is collaborating with Duke Energy to explore the feasibility of using small modular reactors (SMRs) to power its campus3. The study has shown that SMRs could be a potential carbon-free option for the university’s long-term power needs.
- Penn State University: Penn State has signed a memorandum of understanding with Westinghouse to collaborate on microreactor technology. The university aims to demonstrate the technology and potentially support local industries like steel and cement manufacturing.
- The U.S. Department of Energy has $900 million in funding to support the deployment of Generation III+ small modular reactors (SMRs). This funding aims to spur the safe and responsible deployment of advanced reactor technologies across the country, supporting ambitious climate goals and meeting the growing demand for clean, reliable power.
Companies at the forefront of advancing SMR technology:
- TerraPower: TerraPower, in collaboration with GE-Hitachi, is working on the Natrium reactor project in Wyoming1. This project aims to demonstrate the capabilities of advanced SMR technology.
- X-energy is developing the Xe-100 advanced nuclear reactor, which will be deployed at a Dow chemical materials manufacturing site in Seadrift, Texas1. This project is part of the U.S. Department of Energy’s Advanced Reactor Demonstration Program.
- Westinghouse is working on the AP300 SMR design, which is one of the candidate designs for the U.S. Department of Energy’s funding program.
- Holtec is developing the SMR-300, another candidate design for the DOE’s funding program.
- Deep Fission is working on the Deep Borehole Pressurized Water Reactor, which is also a candidate for the DOE’s funding program.
Challenges and Future Outlook
Despite the promising potential of nuclear power, there are challenges to overcome. The technology is still in its early stages, with no commercial SMRs commissioned and operating yet. Additionally, public perception and regulatory hurdles remain significant obstacles. However, with continued investment and innovation, nuclear power is likely to play a crucial role in powering the data centers of the future.
The adoption of nuclear power by tech giants like Google, Amazon, and others marks a significant shift towards sustainable and reliable energy sources for data centers. As these projects progress, they will not only support the growth of AI and other technologies but also contribute to a cleaner, greener future.