💻 Amazon's Big Bet on Nuclear Power
Amazon has announced its move into nuclear power by signing three major agreements to develop small modular reactors (SMRs). These reactors, smaller and quicker to deploy than traditional ones, are being built to meet the skyrocketing energy needs of AI-driven services. According to Matt Garman, CEO of AWS, "Nuclear is a safe source of carbon-free energy that can help power our operations and meet the growing demands of our customers." This move is part of Amazon's strategy to achieve its Climate Pledge commitment of net-zero carbon emissions by 2040.
🔋 Partnering with Energy Leaders
Amazon’s agreements include key partnerships with Washington-based Energy Northwest, which will construct four advanced SMRs. These reactors will be built, owned, and operated by a utilities consortium. The company is also working with Dominion Energy to develop another SMR near the North Anna Nuclear Generating Station in Virginia. Additionally, Amazon is collaborating with X-energy, a developer of advanced reactor technology. X-energy's cutting-edge SMR designs will play a crucial role in Amazon's energy projects.
🌍 AI’s Growing Energy Demands
Amazon's push for nuclear energy is driven by the rising energy consumption of AI technologies. Data centers powering AI models, like those used in AWS, require massive amounts of electricity. According to Goldman Sachs, one query on ChatGPT uses ten times more energy than a Google search. AI-related power usage is already responsible for 2% of global electricity consumption. By 2030, U.S. data centers could use up to 9% of the country’s electricity, more than doubling current levels, making nuclear an attractive option for Big Tech.
🌱 Sustainability Goals at Risk
Despite their sustainability promises, Big Tech companies are struggling to keep up with the carbon demands of AI. Microsoft’s carbon emissions surged 31% since 2020 due to AI hardware production and new data centers. Google’s carbon emissions also increased by 48% since 2019. Both companies have turned to nuclear power as a solution. Google recently signed a deal with Kairos Power, and Microsoft will soon use energy from the Three Mile Island nuclear reactor. These moves highlight the growing reliance on nuclear energy to meet environmental goals while supporting AI’s growth.
Is nuclear energy the right move for Big Tech’s AI demands?
