Summary

In the race to meet surging energy demands and slash carbon emissions, Amazon and Google are turning to a bold new frontier: nuclear power. Just two days after Google’s announcement, Amazon revealed on Wednesday that it, too, is making significant investments in small modular nuclear reactors to power its data centers and artificial intelligence operations. This nuclear arms race between the two tech behemoths marks a pivotal moment in the quest for clean energy.

The Battle for Carbon-Free Power

As global electricity consumption hits record highs, driven in part by data centers and AI advancements, tech companies are scrambling to secure sustainable energy sources. Amazon’s recent move follows Google’s commitment earlier this week to purchase nuclear power from Kairos Power, a developer of next-generation reactors. The two tech giants, already heavily invested in solar and wind power, are now turning to nuclear energy to bridge the gap between their renewable energy goals and the reality of skyrocketing power demands.

“Nuclear energy is key to unlocking the next level of clean energy,” said Kevin Miller, Amazon Web Services’ VP of global data centers. “AI is driving a significant increase in power needs, and advanced nuclear capacity is essential to keeping up with the grid’s demand.”

Reactivating the Nuclear Age

Amazon’s announcement comes on the heels of a groundbreaking development from Microsoft, which revealed that the owner of the shuttered Three Mile Island nuclear plant plans to restart the reactor to power its data centers. The tech sector’s embrace of nuclear energy signals a major shift in how companies are thinking about long-term, sustainable energy solutions.

Energy Secretary Jennifer Granholm applauded the move during Amazon’s announcement event in Virginia, stating that small modular reactors (SMRs) are “a huge piece of how we’re going to solve this puzzle.” The U.S. government is backing these developments with a $900 million fund aimed at deploying more reactors to phase out fossil fuels while meeting the ever-growing demand for electricity.

SMRs are smaller, more versatile nuclear reactors that developers claim can be built faster and at a lower cost than traditional reactors. They can generate up to one-third of the power of large reactors and are projected to be a key tool in scaling clean energy, with plans to bring the first reactors online by the early 2030s.

Powering the Tech Revolution

Both Amazon and Google are betting big on nuclear energy to secure reliable, carbon-free power for their massive data centers, which are the backbone of today’s digital world. According to the International Energy Agency, data centers are projected to consume over 1,000 terawatt hours of electricity by 2026—more than double the consumption from just four years earlier. One terawatt hour is enough to power 70,000 homes for a year, highlighting the immense strain on global power grids.

Google’s deal with Kairos Power aims to bring 500 megawatts of nuclear power to the grid by 2030, with the company’s ultimate goal of achieving net-zero emissions by that year. Amazon’s partnership with Dominion Energy in Virginia and reactor developer X-energy could add more than 5,000 megawatts of power by the late 2030s. Both companies, however, acknowledge that even these massive investments will only cover a fraction of their total energy consumption.

The Future of Clean Energy

With the tech sector pushing the envelope, nuclear energy could experience a renaissance, shedding its controversial past to become a crucial player in the fight against climate change. Kathryn Huff, an associate professor at the University of Illinois and former U.S. assistant secretary for nuclear energy, called these recent investments an “inflection point” for the industry. “Big investors like Amazon and Google can accelerate the deployment of nuclear power,” she said, “which is exactly what we need to scale up this technology.”

While solar and wind power have driven much of the clean energy revolution so far, they are not without their limitations—intermittent output and weather dependency being the most notable. Nuclear power, with its reliable, round-the-clock energy generation, is an attractive complement, especially for industries requiring continuous power, like data centers.

Amazon and Google’s nuclear ambitions are about more than just sustainability—they’re about securing their technological futures in a world increasingly reliant on AI, big data, and constant connectivity. As the race for clean energy heats up, these nuclear investments could play a critical role in keeping the lights on and the servers running, without further contributing to climate change.