01/16/2025 / By Arsenio Toledo
Microsoft is turning to next-generation nuclear reactors to power its data centers and ambitious artificial intelligence (AI) projects.
In the past few months, the tech giant has been signaling a significant shift toward advanced nuclear technology as a clean energy solution to Microsoft’s growing need for power amid the AI boom. (Related: Microsoft to bring infamous nuclear plant back to life to feed POWER-HUNGRY AI data centers.)
Nuclear power is being seen as a solution to Microsoft’s dual challenge of meeting its climate goals and managing the energy-intensive demands of AI development.
The push for nuclear energy is not without controversy. While nuclear power produces no greenhouse gas emissions, it raises concerns about radioactive waste management and uranium supply chains.
Microsoft’s interest in small modular reactors (SMRs), a newer and more compact form of nuclear technology, highlights its commitment to innovation in clean energy. However, the company faces hurdles, including the need for highly enriched uranium fuel – the mining of which is currently dominated by Russia – and the unresolved issue of long-term nuclear waste storage.
Microsoft’s nuclear ambitions are part of a broader trend among tech companies racing to secure reliable, clean energy sources for their data centers. As AI and cloud computing drive unprecedented energy consumption, the tech industry is under increasing pressure to decarbonize. Microsoft’s efforts include partnerships with nuclear energy providers and investments in cutting-edge technologies like fusion power, which, while still experimental, holds the promise of limitless clean energy.
The company is particularly focused on SMRs, which are designed to be cheaper and faster to build than traditional nuclear reactors. In January, the Nuclear Regulatory Commission certified its first SMR design, paving the way for utilities to adopt the technology.
The revival of nuclear energy is gaining momentum across the United States, with Microsoft playing a key role. In a landmark agreement, Microsoft partnered with Constellation Energy to restart Unit 1 of Pennsylvania’s Three Mile Island nuclear plant, a facility infamous for the 1979 partial meltdown of its Unit 2 reactor. The reactivated unit will provide 800 megawatts of clean energy to Microsoft’s data centers, marking a significant step in the company’s goal to become carbon negative by 2030.
“This agreement is a major milestone in Microsoft’s efforts to help decarbonize the grid in support of our commitment to become carbon negative,” said Bobby Hollis, Microsoft’s vice president of energy, in a statement.
The surge in AI development has dramatically increased energy demands. Data centers, which power AI applications, require vast amounts of electricity around the clock. According to a Department of Energy report, data center energy consumption in the U.S. jumped 18 percent between 2018 and 2023 and is expected to grow by 13 to 27 percent by 2028. This has forced tech companies to explore innovative energy solutions, from nuclear fission to fusion and beyond.
Watch this clip from NBC discussing the possibility that emerging liquid cooling technology could be a new way for data centers to keep from overheating.
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