AI Data Centers Boosting Demand for Nuclear Energy

Hyperscalers have reignited interest in the 80-year-old nuclear energy sector. Insights from conversations last year with Rolls Royce revealed a shift of customer and investor focus towards data centers and with Professor Roger Cashmore CMG on nuclear power resurgence.

The outlook from recent discussions at the World Energy Congress amongst nuclear power leaders in France, Japan, and China emphasise the role of nuclear for energy security and fighting global warming, while acknowledging that it is not yet a done deal. The uncertainties lie in determining the optimal nuclear capacity, policy support, political instabilities, public perceptions, and financial obstacles.

The Argentinian Director General of the International Atomic Energy Agency (IAEA) Rafael Mariano Grossi highlighted the divergence of political stances at COP28. This led to an IAEA call for leadership in addressing safety, waste management, new technologies, and public perception.

A shift in generations is evident, with younger individuals showing a positive inclination towards nuclear power. Nonetheless, the future of nuclear energy is uncertain if the barriers hindering its growth are not addressed.

Grossi perceives the nuclear industry as undergoing introspection and advises emerging energy sectors to:

• Assess infrastructure comprehensively
• Integrate logically into the energy mix. Grossi referenced the progress of Advanced Modular Reactors (AMR) and Small Modular Reactors (SMR) in China to resolve grid vulnerabilities in remote areas where traditional grids cannot support nuclear energy.

A New Nuclear Energy Consumer Base

The demand for nuclear power is increasingly fuelled by the need to power AI data centers. While the energy demand was expected, the interest from major tech companies in nuclear energy came as a surprise to the nuclear industry. Collaborating with Microsoft and Google, the IAEA discovered that data centers are significant energy consumers with the potential to disrupt power grids. Consequently the business plan was adapted to tailor nuclear solutions to the energy demands of data centers.

Nuclear's Negative Perception

Naomi Hirose, the Chair of the Japan Energy Association and former CEO of Tokyo Electric Power Company , led the company during the Fukushima Daiichi nuclear accident that occurred after the 2011 earthquake and tsunami in Japan.

Hirose offered an apology for the incident, acknowledging its impact on the reputation of nuclear energy. Despite being known for low emissions, reliability, stable baseload power, and a long operational lifespan, the Fukushima Daiichi accident reshaped the global discourse on nuclear power, leaving a lasting mark.

The aftermath of the Fukushima disaster led to significant changes in Japan and worldwide, with countries halting nuclear projects and a shift in public perception towards nuclear energy. Even after 13 years, public sentiment remains largely against nuclear power, with mass media portraying TEPCO and Hirose in a negative light.

In 2022, a poll revealed that 58% of respondents support restarting nuclear energy, a substantial increase from previous years' 20%. Hirose attributes this shift to concerns over energy security following the Russia-Ukraine conflict. However, negative media coverage has discouraged young people from pursuing nuclear engineering careers, despite the need for skilled professionals to manage nuclear power and address the issue of nuclear waste.

Nuclear Power for AI Data Centers

With the proliferation of data centers globally, nuclear power emerges as the optimal energy source. For instance, answering a single query on ChatGPT consumes 2.9 watt hours, significantly less energy-efficient than traditional Google searches. Data centers allocate 45% of their energy for cooling and 30% for data processing, making nuclear energy a viable and sustainable solution for powering these essential facilities.

A New Chapter for Nuclear Power in France

Laurence Piketty the Deputy General Administrator of the Paris-based CEA, the French Alternative Energies and Atomic Energy Commission, a key player in both civil and defense research in Europe with a 5 billion euro budget, discussed the recent shift in public support for nuclear energy leading to a resurgence in the nuclear industry. In 2022, Macron announced plans for France to construct 6 new nuclear power plants and potentially 8 more in the future, extend the lifespan of the current fleet, and implement programs for SMR and AMR. EDF oversees 56 power plants that generate 70% of the country's electricity.

The main challenge is to attract the next generation of nuclear power professionals. A goal has been set to recruit 10,000 individuals annually, which is a significant increase from the current rate of 3,000 people per year, over the next decade.

China Developing Nuclear Power Fast and at Scale

Yu Jianfeng, the Chairman of CHINA NATIONAL NUCLEAR CORPORATION emphasised the role of nuclear energy for China to shift away from coal-powered plants. Currently, half of China's energy is from clean sources, with plans to build 8-10 nuclear units annually to achieve carbon neutrality by 2060. China aims to have 150GW of nuclear power by 2050 and 400GW by 2060. Presently, the energy capacity is substantial at 2.9 billion KW, with nuclear energy accounting for only 2% of this capacity. Jianfeng remarked that the total nuclear capacity in China is now comparable to that of the United States.

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