U.S. Electricity Demand Ignited by Explosive Growth of Artificial Intelligence
The demand for electricity in the United States, after experiencing nearly zero growth for many years, has finally been ignited by the explosive development of artificial intelligence. To support the enormous demand for round-the-clock, high-stability computing power from data centers, tech giants are accelerating their search for reliable and clean power sources. One of the answers: nuclear fission energy. With the rise of new-generation small modular reactor (SMR) technology, the nuclear energy industry is witnessing a long-overdue renaissance. Companies like Amazon, Google, Meta, and Microsoft are signing power purchase agreements with nuclear startups and even investing directly to seize the initiative in this energy revolution.
Why Does the Tech Industry Love Nuclear Fission?
Nuclear fission, unlike nuclear fusion, which is still in the experimental stage, is a currently viable and deployed form of nuclear energy. For data centers that require stable operations, the intermittency and instability of traditional energy sources are insufficient, while nuclear fission can provide 24-hour uninterrupted power supply, making it an ideal partner for AI computing’s “perpetual motion machine.” In addition to stable power supply, tech companies are also attracted to the potential of small modular reactors. These new-generation nuclear facilities, through modular and mass-production design, are not only safer and more flexible but also expected to significantly reduce construction costs.
The Rise of Small Modular Reactors (SMRs)
Traditional nuclear power plants are mostly designed around large and expensive 1GW (1 billion watts) reactors, with daunting costs and construction periods. In contrast, while small modular reactors have lower power output, they can be assembled flexibly like LEGO blocks, allowing for scalability based on demand and improving overall deployment speed and safety.
Although the United States currently does not have any officially operational SMR plants, this has not dampened the investment enthusiasm of tech giants. Here are several nuclear fission startups that are attracting significant funding from Silicon Valley:
Kairos Power: Google-Backed High-Safety Salt-Cooled Reactor
California-based Kairos Power has secured a commitment from Google to purchase up to 500 megawatts (MW) of electricity by 2035, with the first reactor expected to go online in 2030. Kairos’s reactor uses high-boiling point fluoride salt as a coolant, which can operate in a low-pressure environment, enhancing safety. Its fuel pellet casing is made of carbon and ceramic, capable of withstanding high temperatures and preventing meltdown. This startup has also secured a $629 million grant from the U.S. Department of Energy, with plans to begin construction on two test reactors (each 35 MW) in Tennessee, pending approval from the Nuclear Regulatory Commission in November 2024. The commercial version is expected to reach 75 MW.
Oklo: A Metal-Cooled Nuclear Dream Backed by OpenAI CEO Altman
Oklo is another startup focusing on the SMR field, with notable investors including OpenAI CEO Sam Altman. Altman not only invests but also plans to take Oklo public through his shell company, AltC. Oklo’s reactor employs liquid metal cooling, with its basic design coming from the U.S. Department of Energy, aiming to reduce nuclear waste. Although its first plant application was denied in 2022, the company plans to resubmit the application in 2025. Currently, Oklo has reached an agreement with data center company Switch to supply up to 12GW of nuclear power by 2044.
Saltfoss: Creating Floating Nuclear Power Plants
Originally named Seaborg, the Danish startup Saltfoss also follows the fluoride salt cooling route, but its innovation lies in the “floating nuclear power stations”: installing 2 to 8 SMRs on ships for mobile deployment to different regions. The company has raised about $60 million in funding, with investors including Bill Gates, Peter Thiel, and Unity co-founder David Helgason, and has signed a construction contract with Samsung Heavy Industries.
TerraPower: Bill Gates’s Liquid Sodium Nuclear Future
Founded by Bill Gates, TerraPower is constructing the first Natrium nuclear plant in Wyoming, USA. This reactor combines liquid sodium cooling with molten salt storage, achieving a power output of 345 MW, positioning it between large nuclear plants and SMRs. The highlight of Natrium is its ability to store excess thermal energy when electricity demand is low and convert it back into electricity when demand rises, allowing nuclear energy to respond more flexibly to intermittent demand. Major investors include Cascade Investment, Khosla Ventures, and steel giant ArcelorMittal.
X-Energy: Amazon’s Major Investment in a Gas-Cooled Reactor
X-Energy is currently one of the largest SMR companies in terms of financing, having secured $700 million in Series C funding led by the Amazon Climate Pledge Fund in 2024. The company plans to build a total of 300MW of generating capacity in the Pacific Northwest and Virginia. X-Energy’s Xe-100 reactor features a unique design using high-temperature gas cooling, exchanging heat through helium gas flowing among 200,000 fuel “marbles,” providing an output of 80MW. Although this technology is not common in Europe and the U.S., X-Energy is working hard to prove its future potential.
The Symbiotic Future of AI and Nuclear Energy
As artificial intelligence’s appetite for energy continues to grow, traditional power grids will struggle to meet these demands with renewable energy alone. New-generation nuclear fission technology, especially SMRs, is becoming a lifeline in the eyes of Silicon Valley. Although there are still regulatory and technical challenges to overcome, tech giants are betting on the future, having already integrated nuclear energy into their AI infrastructure blueprint.
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