When Microsoft signed a deal to restart Three Mile Island’s nuclear reactor, it confirmed what energy analysts had already predicted: the artificial intelligence revolution has converged with energy realism. Amazon and Google have followed with similar agreements with nuclear technology developers, collectively betting that nuclear energy offers one of the most viable paths to powering AI’s future.
Now the most pressing question is whether nuclear developers can scale quickly enough to capture the market or whether AI companies will settle for less optimal alternatives.
By the 2030s, data center electricity consumption may well rival that of a large nation. The International Energy Agency projects global electricity demand will increase sixfold by 2050. This is due in part to the fact that AI workloads require continuous computation for weeks or months, demanding 24/7 power.
In 2024, nuclear reactors supplied a record 2,667 terawatt-hours (TWh) globally, avoiding over two billion tons of carbon dioxide. However, nuclear’s share of the global energy mix has stagnated as demand outpaces clean energy growth. The World Nuclear Association estimates that the current global nuclear energy capacity of 398 GW must at least triple by 2050 to keep pace of around 10% of global electricity demand.
Renewables coupled with storage remain economically impractical for multi-day backup at data centre scale, though costs are declining. While solar capacity will expand, nuclear plants generate more electricity by running continuously.
Nuclear’s capacity factors, averaging 90% in North America, make it uniquely suited to data centre requirements, provided projects can be delivered on schedule and budget.
Nuclear’s Recent History
Over the past 40 years, the global average construction time for a nuclear reactor has been around five and a half years. However, there is a conventional view that nuclear projects often overrun, based on a few delayed projects.
The fact is that barely any new Western nuclear energy capacity has been delivered over the last few decades. The low electricity demand, the changing funding models from government-backed infrastructure to private debt, translated into weakened delivery capabilities, atrophied supply chains and inexperienced workforces. Moving from individual projects to multi-unit programs could solve these problems if the project pipeline of over 100 reactors in the West materialises.
Shifting Dynamics
Three factors may shift this dynamic. Corporate net-zero pledges have constrained fossil alternatives, at least on paper. Regulatory reform is gaining traction, with countries streamlining knowledge-sharing processes and compressing approval timelines, and the financial community is exploring mechanisms to reduce the cost-of-capital premium nuclear projects face.
Mobilizing the global supply chain requires coordination across the nuclear fuel cycle. There is also a need for timely investment decisions across all aspects of the fuel cycle. While geopolitical market dynamics have influence, there are sufficient uranium resources to meet projected nuclear growth, but these resources need to be brought into production to increase supply.
To realise the tripling goal, the nuclear industry must continue to collaborate and partner across sectors.
Platforms like ADIPEC [an energy transition event in the Middle East] have become crucial for this coordination, bringing together policymakers, nuclear developers, technology leaders, and financial institutions to reconcile incompatible timelines and risk frameworks. As a member of the ADIPEC executive committee, I’ve observed how these forums have evolved into working sessions where concrete obstacles get negotiated across traditionally separate industries.
The need for clean electricity extends beyond AI. The real challenge remains replacing coal.
As the world decarbonises, drives economic development, and works to connect nearly a billion people who still lack access to regular electricity, global demand for reliable clean power will rise dramatically. Energy-intensive industries share data centers’ baseload requirements. Nuclear can power microchip manufacturing, petrochemical production, healthcare facilities, and desalination plants.
Deployment strategies are diversifying to meet this moment. Small modular reactors are generating considerable interest for their potential to serve smaller grids and industrial applications. Canada is moving ahead with its first small modular reactor (SMR) builds, demonstrating that newer designs can complement traditional large-scale plants. While SMRs remain in early commercial stages, commissioning new and extending the lifetimes of existing large reactors offers immediate capacity additions.
The Path Forward
Momentum is building for nuclear energy. At the 50th World Nuclear Symposium this September, executives from financial institutions, intensive energy users and many others reported that investor appetite for nuclear is strong. Thirty-one governments, 14 major banks and 15 major energy users, including Amazon, Google, and Dow, now support tripling nuclear capacity by mid-century. Even the World Bank has shifted its position to remove a ban on funding nuclear projects, signalling institutional confidence in nuclear’s role.
To support nuclear energy, governments should adopt risk-informed, performance-based licensing allowing pre-approved designs to optimize project-specific reviews. Financial de-risking through construction guarantees would eliminate the “nuclear” premium, making nuclear more competitive. Fuel supply expansion and diversification require accelerated investment decisions.
The stakes of supporting a nuclear energy renaissance extend beyond any single sector. Countries committing to nuclear baseload will gain decisive advantages in AI, advanced manufacturing, and semiconductor production, becoming 21st-century economic leaders. Those who hesitate risk becoming technologically dependent and enduring energy insecurity.
The opportunity exists. Whether nuclear delivers will define this decade.
Sama Bilbao y León is director general at the World Nuclear Association.
Source: Data Center Knowledge
