The Rise of Nuclear Power in Big Tech: A Strategic Shift

In recent years, the tech industry has made significant efforts towards securing sustainable and reliable energy sources. These efforts are driven by the increasing energy demands of power-developing artificial intelligence (“AI”) and data centers. The increasing demands have led many technology companies to explore the clean energy capability of nuclear power. For example, tech giant Meta agreed to purchase nuclear power from Constellation's Clinton Clean Energy Center in Clinton, Illinois on June 3, 2025. (Stevens, CNBS). The Meta deal encapsulates the growing importance of nuclear energy in the tech industry and sets a precedent for other tech companies looking to secure and invest in sustainable and reliable energy sources. (Timothy Gardners, Reuters). This post explains the key tenants of the deal, the tech industry’s move to nuclear power, and the challenges of additional nuclear power usage.  

Meta’s recent deal aligns with President Trump's executive orders aimed at strengthening U.S. leadership in nuclear energy through strategic regulatory and industry advancements, including accelerating “nuclear reactor licensing.” (Office of Nuclear Energy). Evercore ISI analyst Nicholas Amicucci described the Meta deal as the “first of many.” (Timothy Gardners, Reuters). The orders aim to reform nuclear regulations, optimize reactor testing, deploy reactors for national security, and revitalize the nuclear industry. (Office of Nuclear Energy). Overall, the tech industry is turning to nuclear power to fuel their AI models, as they each require stable energy sources. (Casey Crownhart, MIT Technology Review).

To meet their climate goals, tech giants are seeking low-emission options. Id. The demand for fast AI models and the anticipated AI boom have led tech giants to quickly gear up for this growth. Id. It is estimated that to meet the projected growth in “data center power demand” by 2030, an additional 85-90 gigawatts (“GW”) of “nuclear capacity would be” required compared to 2023. However, “less than 10%” of this capacity is expected to be “available globally by 2030.”(Goldman Sachs).

According to the Meta Agreement, “Constellation (Nasdaq: CEG) and Meta have signed a 20-year power purchase agreement (‘PPA’) for the output of the Clinton Clean Energy Center to support Meta’s clean energy goals and operations in the region with 1,121 megawatts of emissions-free nuclear energy.” (Constellation). Although the deal’s price is undisclosed, the Agreement allows Constellation to expand Clinton by 30 megawatts from its current 1,121 megawatts. (The Guardian). The plant currently provides energy for “the equivalent of about 800,000 U.S. homes.” Id. Due to this expansion, it is expected that roughly 1,100 jobs will be preserved and “$13.5 million in annual tax revenue” will be generated. (Miranda Nazzaro, The Hill).

Meta is purchasing nuclear power due to the rise in demand of U.S. power resulting from the popularity of AI and data centers. (WNN). As AI continues to evolve, the amount of energy needed to continue to develop and operate these technologies will continue to rise. (Miranda Nazzaro, The Hill). This requires a reliable power source that can meet these demands while minimizing greenhouse gas emissions. Id.  Nuclear power is one of few reliable power sources that can meet these demands. (Crownhart, MIT Technology Review). This is because “unlike wind turbines” and solar panels, which produce “electricity intermittently, nuclear power plants” generally provide a steady energy supply “to the grid,” making them well-suited for data centers. Id. “Data center companies pretty much want to run full out, 24/7,” says Rob Gramlich, President of Grid Strategies, a consultancy focused on electricity and transmission. Id.

Further, there are several challenges with nuclear power datacenters, including a shortage of specialized labor, difficulties in obtaining permits, high financing cost, and sourcing issues, which are all challenges that must be dealt with when shifting to nuclear power. (Goldman Sachs). One example of this comes from Amazon and Talen Energy’s recent energy deal, where in March 2024, the two companies entered “a $650 million” agreement to acquire “a co-located data center and up to 960 megawatts of electricity from the Susquehanna Steam Electric Station.” (U.S. Department of Energy). However, the Federal Energy Regulatory Commission paused efforts to increase power supplies due to concerns that such arrangements might enable data centers to use transmission systems without paying, “potentially raising costs for utility customers.” Id.

Yet, despite these challenges, tech companies still consider nuclear power as an advantageous energy choice. (Institute for Energy Research). Google's Senior Director of clean energy and carbon reduction, Michael Terrell, notes that nuclear energy is “‘clean, firm, carbon-free, and can be sited just about anywhere.’ (Firm energy sources are those that provide constant power).” (Casey Crownhart, MIT Technology Review). On an operational level, nuclear power is beneficial because the plants don’t require frequent shutdowns. (U.S. Department of Energy). Shutdowns in datacenters can lose $8 million or more each day.  Id. Nuclear power outages usually only “last a few weeks” since nuclear plants run “18 to 24 months at a stretch,” significantly reducing loss. (U.S. Energy Information Administration).

While this is the average outage period, several reactors experienced significantly longer outages. Id. For example, in 2023, a “Millstone Nuclear Plant in Waterford, Connecticut, was offline for 89 days,” and a “Columbia Generating Station in Richland, Washington” had “a 44-day outage.” Id. Additionally, new “accident-tolerant fuels” with high burnup currently undergoing testing could further “extend fuel cycles, and some advanced reactor designs” being developed that aim to run for up to ten years without needing refueling. (Office of Nuclear Energy).

The future of nuclear power necessarily comes with strategic partnerships and collaborations. (Deloitte). Aside from tech companies, non-traditional companies in this field, including private equity firms, are becoming increasingly active, leveraging their capital and expertise to reinvigorate the U.S. nuclear industry. Id. Educational facilities, such as Massachusetts Institute of Technology, are typically at the forefront of nuclear power research and technology developments, but they also provide crucial training to those specializing within the nuclear industry. Id. Finally, governments can implement nuclear power incentive policies with goals such as “streamlining licensing processes.” Id.

Meta's nuclear power agreement with Constellation marks a pivotal moment in the tech industry's approach to energy consumption. (Institute for Energy Research). As AI and data centers continue to increase their power demands, nuclear energy offers a promising solution that complements the industry's sustainability goals.