Surge in AI Data Center Power Demand Drives Tech Giants to Invest Heavily in Small Modular Reactors

The power demand of AI data centers is surging, prompting tech giants to accelerate their entry into the nuclear energy sector and reshape the industry's financing model. Several giants are providing financial support and clear commercialization paths to nuclear companies via long-term agreements.

Specifically, Meta has agreed to support the development of two Terrapower units (with a maximum total capacity of 690MW) and also partnered with Oklo to advance a 1.2GW nuclear project in Ohio. Amazon is collaborating with X-energy to commission over 5GW of small modular reactors in the US by 2039, while Google is working with Kairos Power to launch its first project by 2030.

BMI senior analyst Shioly Dong notes that these collaborations inject tech firms' capital into the nuclear sector—previously dependent on regulated electricity pricing—providing the revenue predictability banks need to fund projects. However, advanced nuclear energy still faces challenges like construction costs, technical risks, and labor shortages.