Nuclear Energy and the AI Boom: A New Wave of Investment

The global tech industry’s energy demand is rising rapidly, driven by the growth of artificial intelligence (AI). In response, small modular reactor (SMR) manufacturers have raised $1.5 billion in investment over the past year. This influx of capital is aimed at ensuring reliable energy supply, which is critical for tech giants such as Amazon, Google, and Meta.

Surging Interest in Nuclear Energy

Investor interest in nuclear power has increased significantly, supported by both private capital and government initiatives. Funding for SMR technology has now reached billions of dollars, as these next-generation reactors offer high-capacity, clean, and flexible energy solutions.

Key investments in SMR technology include:

• X-energy secured $700 million in funding from Jane Street, Amazon, and Citadel’s founder, Ken Griffin.
• French startup Newcleo raised $151 million in September.
• U.S. firms Blue Energy and Last Energy received $45 million and $40 million, respectively.
• Publicly traded SMR firms like Oklo, NuScale, and Nano Nuclear Energy raised over $700 million through stock offerings and other financial instruments.

Additionally, major industry players such as Westinghouse, Rolls-Royce, and Bill Gates’ TerraPower continue investing heavily in nuclear energy.

However, interest in nuclear power isn’t limited to the private sector—governments worldwide are actively funding this sector as well.

AI’s Energy Demand and the Shift to Nuclear Power

The expansion of AI-driven data centers is straining power grids, leading tech firms to seek alternative energy solutions. Microsoft recently signed a 20-year deal with Constellation Energy to source electricity from the Three Mile Island nuclear plant.

Such agreements demonstrate that the tech industry is increasingly turning to nuclear power as a reliable and clean energy source.

With AI development accelerating, energy consumption is skyrocketing—machine learning, cloud computing, and large-scale data processing require enormous amounts of electricity. Investors now see SMR technology as a key solution to this growing problem.

U.S. Government Support for Nuclear Energy

The Biden administration is actively promoting the SMR sector:

• $6 billion allocated for nuclear reactor funding.
• The 2022 Inflation Reduction Act (IRA) introduced tax incentives for nuclear energy projects.
• The U.S. Department of Energy supports SMR technology development, aiming to compete with Chinese and Russian nuclear energy projects.

Former U.S. Energy Secretary Chris Wright stated that “nuclear power must be part of America’s energy strategy”, but political consensus remains a challenge.

Big Tech’s Growing Interest in SMRs

Both private and public sectors are already incorporating nuclear power solutions:

• Meta is currently reviewing SMR proposals, planning to secure 40 gigawatts of nuclear power by the 2030s.

Such initiatives highlight how the global tech industry is beginning to view nuclear power as strategic infrastructure.

Challenges and Future Outlook

Despite strong interest in SMRs, investors remain cautious due to high initial costs and complex regulations.

Experts argue that for SMR technology to expand, clearer financial guarantees and stronger international cooperation are necessary.

Meanwhile, Europe and Asia are also exploring SMR investments:

• The UK, France, and Japan see SMRs as a way to enhance energy independence and reduce carbon emissions.

Over the past decade, nuclear power has emerged as a key clean-energy technology—not only environmentally friendly but also economically and strategically vital.

As AI and digital infrastructure expand, the need for high-capacity, stable energy sources will be critical for the future of the tech industry.

While challenges remain, SMR technology is already creating a new market that could become one of the most strategic sectors of the next few decades.

If current investments and political support continue, nuclear energy may become the defining energy source of the AI era.