SDG 7: Affordable and Clean Energy | SDG 13: Climate Action | SDG 9: Industry, Innovation and Infrastructure
Ministry of Electronics and Information Technology (MeitY) | Department of Atomic Energy (DAE)
The rapid global expansion of Artificial Intelligence (AI) is placing unprecedented pressure on electrical grids, leading many experts to conclude that a massive expansion of nuclear energy is essential to meet this demand sustainably. AI is powered by energy-intensive data centres, where a single medium-sized facility can consume as much electricity as 100,000 households. With data centres projected to account for over 20% of electricity-demand growth in advanced economies by 2030, tech giants and nuclear industry leaders are exploring how nuclear power can provide the stable, zero-carbon, “around-the-clock” energy required for the AI revolution.
The AI-Driven Energy Demand
Skyrocketing Consumption: Training cutting-edge AI models requires tens of thousands of processors running continuously for months, leading to a “vertiginous” increase in power needs.
Clean Energy Gap: Google and other tech leaders assert that wind and solar power alone cannot meet the high threshold for constant, high-density electricity required for machine learning.
The ‘Bullish’ Industry: There are currently 71 new nuclear reactors under construction globally, adding to the 441 already in operation.
Corporate Pledges: Major technology companies have committed to supporting the goal of tripling global nuclear capacity by 2050 to ensure a sustainable AI future.
Key Technological Trends and Deployments
Small Modular Reactors (SMRs): Unlike traditional large-scale plants, SMRs have a smaller footprint and can be deployed directly on data centre campuses, bypassing grid constraints and transmission losses.
Restarting Legacy Plants: Microsoft has signed a 20-year agreement to restart Unit One of the Three Mile Island nuclear plant in the US specifically to power its AI operations.
Global Hubs: Countries like the UAE are emerging as regional AI hubs supported by new nuclear programs, while emerging economies like Poland are accelerating their nuclear entry.
Future Horizons: Google is exploring space-based solar networks to facilitate large-scale machine learning in orbit, with prototype launches scheduled for early 2027.
What are ‘Small Modular Reactors (SMRs)’ and why are they favored by AI tech companies? SMRs are advanced nuclear reactors that have a power capacity of up to 300 MW(e) per unit, which is about one-third of the generating capacity of traditional nuclear power reactors. They are favored by tech companies because they are modular, meaning their components can be factory-assembled and transported as a unit to a location for installation. This allows for a shorter lead time and lower upfront investment compared to traditional plants. Crucially, SMRs can be located on-site at data centre campuses, providing a dedicated and highly reliable source of zero-carbon power that does not rely on the broader regional electrical grid.
Policy Relevance
While the primary AI-nuclear deals are currently centered in the US and Europe, the strategic implications for India’s dual goals of digital leadership and energy security are profound.
Strategic Impact:
Powering ‘IndiaAI’ Mission: As India builds its national AI infrastructure, integrating Small Modular Reactors could solve the energy bottleneck for its upcoming large-scale data centre parks.
Strategic Autonomy in Energy: Leveraging India’s advanced nuclear research base—similar to Russia’s proficiencies—can help create a sovereign AI-energy stack that is not dependent on imported fossil fuels.
Supporting Net-Zero Targets: Tripling nuclear capacity, as pledged by global tech giants, aligns with India’s long-term decarbonization goals while supporting its high-growth digital economy.
Leadership in Emerging Tech: India can position itself as a global leader in AI-optimized nuclear operations, using its software prowess to improve reactor safety and efficiency.
Relevant Question for Policy Stakeholders: How can India’s ‘Atomic Energy Act’ be amended to allow for public-private partnerships specifically for the deployment of ‘captive’ Small Modular Reactors (SMRs) within designated Special Economic Zones (SEZs) for AI and data centres?
Follow the full news here: Will AI kickstart a new age of nuclear power?