Big tech banking big on nuclear energy to power cloud infrastructure
As the demand for energy-intensive AI applications and cloud infrastructure continues to surge, major tech companies are turning to nuclear power as a sustainable solution to meet their growing electricity needs. Following Microsoft's move to revive the dormant nuclear reactor at Pennsylvania’s Three Mile Island site, both Google and Amazon Web Services (AWS) have now inked significant deals with nuclear power providers. The tech companies are betting big on small modular reactors (SMRs) to power their vast data centers.
Google’s “World First” nuclear energy deal
Google recently announced an agreement with Kairos Power, a California-based nuclear energy company, to buy energy from a fleet of six or seven SMRs. The first reactor is expected to come online by 2030 and the rest completed by 2035.
Google has committed to purchasing a total of 500 megawatts from Kairos, which is already developing a demonstration reactor in Tennessee. The reactor is scheduled for completion in 2027 and is expected to pave the way for larger deployment.
“Nuclear provides a clean, round-the-clock power source that can help us reliably meet electricity demands,” Google said, signaling its confidence in the technology as part of its broader push to decarbonize its global operations.
AWS invests in X-Energy’s SMR technology
Amazon Web Services (AWS) has also joined the foray. On Wednesday last week, Amazon announced its involvement in the development of three new nuclear energy projects centered around SMRs. The cloud giant is partnering with X-energy, a company at the forefront of SMR technology, to help scale its reactors.
AWS plans to build multiple SMRs in Washington, with the first phase expected to generate 320 megawatts of power — roughly a third of the output of a conventional pressurized water reactor (PWR). If fully realized, Amazon's nuclear deployments could expand to 12 SMRs generating 960 megawatts, enough to power 770,000 U.S. homes.
“Nuclear is a safe source of carbon-free energy that can help power our operations and meet the growing demands of our customers,” said AWS CEO Matt Garman. The initiative aligns with Amazon’s Climate Pledge to achieve net-zero carbon emissions across its operations by 2040.
Microsoft’s SMR ambitions
Not one to be left behind, Microsoft also hired a director of nuclear technologies early this year to oversee its deployment of SMRs for its data centers. The company also inked a power purchase agreement with Helion, a fusion-energy startup backed by OpenAI co-founder Sam Altman, which is expected to supply power to Microsoft by 2028.
Oracle’s quiet entry into nuclear
Oracle is another major tech player exploring nuclear energy. In September, the company announced that it had secured building permits for three SMRs to power a data center with over a gigawatt of AI computing capacity. While Oracle founder and chairman Larry Ellison has not disclosed details about the specific vendors or timeline, the move underscores the growing interest in nuclear power as a solution for tech companies’ energy needs.
Conclusion: The nuclear shift
The adoption of SMRs by tech giants signals a shift toward nuclear energy as a cornerstone of future cloud infrastructure. This is critical especially since traditional energy sources, including fossil fuels and renewables, have struggled to keep up with the 24/7 power demands of data centers in the AI age. Nuclear power, particularly from SMRs, offers a low-carbon, reliable alternative that can meet these challenges.
While nuclear power is still in its early stages, its potential to transform the energy landscape and offer long-term, sustainable energy solutions for cloud computing and AI is clear. As these major players continue to put money into it, the expectations are high that the industry will grow to its full potential.
