The AI boom has created a $500B power infrastructure gap for data centers, triggering a race to secure next-generation nuclear technology.
US data center power consumption is projected to triple from 25GW in 2024 to over 80GW by 2030. Between 2023 and 2028, data centers could drive nearly half of US electricity growth.
Tech companies are increasingly exploring nuclear energy as a reliable, carbon-free power source to support AI’s exponential growth.
Source: CB Insights — Earnings call mentions of “data center” and “nuclear”
KEY TAKEAWAYS
- Tech giants kick off multi-billion-dollar bets on fusion and small modular reactors (SMRs) to secure future power. The AI boom’s energy demands are driving significant investment in next-gen nuclear technology, with multiple landmark deals signed in 2024.
- Supply chain infrastructure gaps are forcing companies to build entire nuclear component industries from scratch. Scaling production capacity for specialized fuels and components is pushing nuclear projects’ deployment until the 2030s. Addressing these fundamental supply chain bottlenecks will be critical in enabling the mass adoption of nuclear technologies.
- Nuclear technology companies are proving commercial viability through medical applications. Early success in medical isotope production is both generating revenue and establishing the broader commercial potential of nuclear technologies.
Below, we examine how fusion startups and SMR developers are emerging as the two primary tracks in next-generation nuclear development. This dual-track approach reflects tech companies’ strategic betting: SMRs offer a near-term solution using proven nuclear technology in smaller, modular formats, while fusion represents a longer-term breakthrough that could revolutionize power generation.
Tech giants kick off multi-billion-dollar bets on fusion and SMRs to secure future power
Small modular reactors (SMRs) are dramatically scaled-down versions of traditional nuclear plants designed for factory fabrication. They offer faster deployment and location flexibility while maintaining conventional nuclear technology’s reliable, carbon-free power generation.
