From: allin
The landscape of energy production is witnessing a renewed focus on nuclear power, particularly Small Modular Reactors (SMRs), driven by rising energy demands, the proliferation of AI, and climate goals. Big tech companies are increasingly showing interest in these technologies to power their expansive data centers.
Big Tech Investment in Nuclear Energy
Major technology companies are actively investing in nuclear power projects to meet their significant energy needs.
- Amazon announced a multi-million dollar investment in three nuclear power projects, all focused on SMRs [00:45:26]. They are working with Dominion Energy to develop a small modular nuclear reactor near an existing plant in Virginia [00:45:37]. Amazon plans to invest $35 billion in Virginia-based data centers by 2040, intending to power them with SMRs [00:45:45].
- Google is purchasing energy directly from Kairos Power, another company developing SMRs [00:45:56].
- Microsoft is involved in reviving one of the Three Mile Island nuclear power plants [00:46:02].
While these announcements signal strong interest and potential demand, the deals are often conditional. They primarily indicate potential buyers at the finish line, rather than immediate financial investments that solve the need for risk capital or regulatory approvals for construction [00:47:32].
Energy Demand and the Necessity of Nuclear Power
As global GDP per capita grows, energy consumption per capita also increases [00:49:12]. Projections for industrialized nations indicate that it is impossible to meet future energy demand without nuclear power [00:49:24]. The current buildout potential for solar, geothermal, and wind energy is insufficient to cover this gap [00:49:41]. Therefore, a significant amount of baseload energy will need to come from nuclear sources [00:49:50]. The US Energy and Nuclear Infrastructure will likely need to grow its energy production by several terawatts in the coming decades [00:50:37].
Small Modular Reactors (SMRs)
SMRs are seen as the fastest path to addressing the energy gap in the US Energy and Nuclear Infrastructure due to the existing regulatory structure, utility regulations, and environmental laws [00:50:13].
- Capacity: SMRs produce tens of megawatts, significantly less than traditional gigawatt-scale facilities [00:50:29].
- Global Adoption: There are SMRs currently operating in China, Russia, and India, with approximately 65 more being built globally [01:03:01]. The US is “observing and trying to catch up” with these technologies [01:03:09].
- Theoretical vs. Functional: While there are functional SMRs abroad, some of the more advanced “NextGen whizbang performance” SMRs are still theoretical and have not yet been fully tested for failure modes [01:02:46].
Safety and Public Perception
Public opposition to nuclear power, often characterized as “Not In My Backyard” (NIMBY) sentiment, remains a significant hurdle [00:51:50].
- Historical Incidents: Three major incidents are commonly cited when discussing nuclear safety:
- Three Mile Island: Zero deaths recorded [01:00:17].
- Fukushima: One death recorded [01:00:21]. While the entire region remains uninhabited due to radioactive material, newer technologies are designed to prevent such widespread fallout [01:00:56].
- Chernobyl: 46 deaths directly attributed to the incident [01:00:22].
- Advanced Reactor Generations:
- The fear surrounding nuclear technology often conflates power generation with nuclear weapons [00:57:47].
- Newer Gen 3 and Gen 4 nuclear systems are significantly safer. The Gen 4 reactors, such as the one that went online in China’s nuclear energy buildout in December, are designed to prevent meltdowns [01:01:13].
- The argument is made that resistance to nuclear power is akin to banning airplanes due to crashes [00:54:44].
Despite these advancements, public skepticism persists, with a significant number of people not wanting a nuclear power plant in their vicinity [00:51:50]. Some argue that this is a “luxury belief” held by elites who will not be directly impacted by the potential downsides, as such plants might be built in poorer or working-class communities [00:52:17].
Geopolitical and Economic Implications
The global race for abundant and low-cost electricity is critical for economic competitiveness, especially as economies become more digital and automated [00:56:46].
- International Comparison: China’s nuclear energy buildout demonstrates a rapid pace of development due to its regulatory authority and clear mandates, aiming to build hundreds of gigawatt-scale facilities [00:50:00]. This could lead to a significant cost advantage (e.g., 5 cents per kilowatt-hour in China compared to 20 cents in the US) impacting economic competitiveness [01:03:23].
- Energy Independence: Widespread adoption of nuclear energy in the US and Europe could enhance energy independence, reducing reliance on the Middle East [00:51:32].
- Location and Incentives: While nuclear plants require distance from dense populations (ideally 50-100 miles from major cities), there is ample space in the US for their placement [00:54:02]. Providing economic incentives, such as tax breaks, to communities willing to host these facilities is a potential solution to overcome local opposition [00:56:57].
The development of nuclear power, particularly SMRs, is viewed by proponents as an economic necessity to meet rising energy demands and maintain global competitiveness. While challenges remain in public perception and regulatory hurdles, the long-term economic incentives are expected to drive progress in energy policy and innovation and deployment.