Small Modular Reactors: Why Big Tech is Betting on Nuclear to Power the AI Era

mwilliams831
Aug 20
5 min read

Updated: Aug 27

Artificial intelligence is advancing at a staggering pace, reshaping industries, economies, and the way society functions. But behind every innovation lies a question few outside the energy sector ask: how will we power it all?

Training and running large-scale AI systems requires immense computing power. A single AI query can consume ten times the electricity of a standard Google search. Multiply that by billions of daily queries, and you get a sense of the pressure this places on the power grid.

The result? Data centers now consume electricity on the scale of entire cities—and the demand is only accelerating. The U.S. Department of Energy projects global electricity needs could rise as much as 75% by 2050, with AI-powered facilities emerging as a leading driver.

Wind and solar will continue to play a critical role, but their intermittency makes them ill-suited for the always-on reliability AI requires. That’s where nuclear energy—and particularly Small Modular Reactors (SMRs)—come into play.

The New Energy Equation

For decades, U.S. electricity demand grew gradually. But today, three forces are converging:

AI and data centers growing at unprecedented speed.
Electrification of industry and transport adding new baseload needs.
Reshoring of manufacturing bringing energy-intensive industries back onshore.

Together, they are rewriting the energy equation. The future economy isn’t just digital—it’s energy-intensive, and it requires solutions that are both scalable and carbon-free. Nuclear power offers exactly that: steady output, zero emissions, and the ability to scale with demand.

Amazon Leads the Charge

Among Big Tech players, Amazon has moved most aggressively into nuclear. In October 2024, the company announced a series of deals across Virginia and Washington State:

A $500 million investment in X-energy, anchoring development of SMRs capable of generating more than 5 GW of clean power by 2039—enough to supply an entire mid-sized U.S. city.
A partnership with Energy Northwest to launch up to 960 MW of modular nuclear capacity, with the flexibility to scale higher.
An agreement with Dominion Energy to explore new SMRs in Virginia.
A long-term power purchase deal with Talen Energy, securing nearly 2 GW of nuclear-generated electricity through 2042.

These moves are part of Amazon’s broader $52 billion data center expansion across just three U.S. states, designed not only to meet surging AWS demand but also to advance its pledge of net-zero operations by 2040.

As AWS CEO Matt Garman put it: “Nuclear is a great option for how we scale the world’s energy needs. SMRs are the most promising new technology to do that.”

Microsoft, Google, and Meta Follow Suit

Amazon may be the loudest voice, but it’s not alone.

Microsoft is working with Constellation Energy to breathe new life into the Three Mile Island site, while Bill Gates’ TerraPower is advancing next-gen reactors in Wyoming.
Google has partnered with Kairos Power in Tennessee to explore advanced nuclear designs.
Meta is exploring options to secure as much as 4 GW of nuclear power for its global infrastructure.

For these companies, nuclear isn’t just an experiment—it’s a survival strategy. The AI economy cannot scale without reliable energy, and SMRs offer a pathway.

Why SMRs Matter

Small Modular Reactors are not your grandfather’s nuclear plants.

Compact & Flexible: At roughly 300 MW each, SMRs are one-tenth the size of traditional reactors, making them easier to site near energy-hungry facilities.
Faster Deployment: Factory-built modules speed up construction and reduce risk.
Scalable Design: Much like data centers themselves, SMRs can grow in modular blocks, expanding as demand increases.
Round-the-Clock Reliability: Unlike solar or wind, SMRs deliver continuous power—a critical advantage for AI workloads that never pause.

Though the U.S. does not yet have an operational SMR, the first units are expected to come online in the early 2030s. Many in the industry see them as the most viable way to balance emissions reductions with skyrocketing energy demand.

Challenges on the Road Ahead

The opportunity is massive, but hurdles remain:

Regulatory Delays: No SMR has yet cleared full U.S. approval. Licensing is complex and time-intensive.
Uncertain Costs: Nuclear remains capital-intensive, and estimates vary widely.
Public Concerns: Waste management and safety still shape public opinion, despite modern advances.

Yet momentum is undeniable. As Doug Vine of the Center for Climate and Energy Solutions notes, costs may be a “moving target,” but the pressure to expand clean, firm power is accelerating investment and innovation.

Implications for Development & Infrastructure

The return of nuclear power—especially in modular form—carries implications far beyond the energy sector.

Data Center Siting: Access to reliable, carbon-free baseload will shape where AI campuses are built.
Industrial Growth: Advanced manufacturing hubs will cluster near SMR-powered campuses.
Community Planning: Towns and regions will need to integrate nuclear-enabled growth into zoning, land use, and infrastructure decisions.

At Interface Holdings and Development (IHD), we see this convergence of energy and infrastructure as pivotal. Tomorrow’s projects—AI campuses, industrial parks, integrated energy hubs—require foresight, stakeholder alignment, and innovative partnerships. That’s where our expertise lies: ensuring developments are designed to thrive in the energy landscape of the future.

The Road Ahead

As one executive put it, “Abundant intelligence is built on abundant energy.”

The rise of Small Modular Reactors marks a turning point in aligning energy innovation with the digital economy. Challenges remain, but the direction is clear: nuclear power is being reframed as the backbone of AI-driven growth.

For Big Tech, it’s survival. For communities and developers, it’s opportunity. For the future of infrastructure, it’s nothing less than transformative.

At IHD, we help leaders navigate these transformations—ensuring today’s projects are built to meet the energy demands, and opportunities, of tomorrow.

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