Data centers powered by next-gen nuclear? Don’t fall for Big Tech’s PR hype

The Bulletin  |  Molly Langabeer, M.V. Ramana

Big Tech companies are increasingly promoting small modular nuclear reactors (SMRs) to power energy-intensive artificial intelligence data centers, yet these initiatives appear to be primarily public relations exercises rather than viable energy strategies. While firms like Amazon and Google have announced partnerships to develop advanced nuclear projects, the financial commitments remain negligible compared to their massive capital expenditures on data center infrastructure.

These nuclear investments often rely on ambiguous feasibility funding and potential public subsidies, masking the reality that SMRs remain significantly more expensive and slower to deploy than established renewable energy sources. As data center power demand grows at 12.6 percent annually, the actual contribution of nuclear energy has stagnated or declined. Consequently, the reliance on these high-cost, unproven reactor designs serves as greenwashing to deflect from the environmental impact of rapid data center expansion and the resulting upward pressure on consumer electricity prices across the United States.

Comment

The reliance on SMRs for baseload power introduces significant procurement risks, particularly regarding the lack of a mature supply chain for high-assay low-enriched uranium (HALEU). Current US domestic production capacity for HALEU remains insufficient to support a fleet of advanced reactors, forcing a strategic dependency on foreign enrichment services. This vulnerability mirrors the historical challenges faced during the deployment of the AP1000 reactors at the Vogtle site, where modular construction failed to mitigate cost overruns and schedule slippage. For India, which is pursuing its own indigenous SMR development program, these developments underscore the necessity of establishing a robust domestic fuel cycle and modular manufacturing base before committing to large-scale grid integration. Relying on unproven reactor designs for critical national infrastructure risks creating long-term fiscal liabilities that could undermine broader energy security objectives.

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