- Microsoft and Amazon sign nuclear deals to power data centres.
- Data centres could consume 9% of US power by 2030.
What happened
Major technology firms are signing specific nuclear energy deals to support AI expansion, according to Reuters.
Microsoft has agreed to help restart the Three Mile Island nuclear plant with Constellation Energy. The plant closed in 2019. It will now supply carbon-free electricity to Microsoft’s data centres under a long-term contract.
Amazon has committed more than $500m to X-energy. The investment supports small modular reactor deployment. These reactors are designed to power data centres and industrial users.
Alphabet and Meta are also exploring nuclear partnerships to meet future demand.
US power demand is expected to hit record levels in 2026, with data centres accounting for up to 9% of total consumption by 2030. Some AI facilities already require more than 1 gigawatt of capacity.
Why it’s important
AI growth is turning electricity into a strategic constraint. Tech firms are moving beyond utility purchases, securing power through long-term contracts and equity stakes — a shift that changes how energy is financed and delivered.
Nuclear offers stable baseload supply. It supports always-on data centres better than intermittent renewables. This makes it attractive despite higher upfront costs.
However, regulatory delays and supply constraints remain significant risks. These barriers could slow deployment and limit near-term impact.
Also read: OpenAI pauses UK data centre plans as energy costs bite
Also read: OpenAI and SoftBank commit $1bn to SB Energy to power AI data centres
