AI Cannot Happen Without Nuclear Energy
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The nuclear renaissance is here. It's not a distant possibility—it's happening now, driven by AI's massive energy demands and Silicon Valley's sudden realization that renewables can't keep the lights on 24/7.
While the United States races to rebuild its nuclear capabilities, this transformation is playing out differently across three major regions:
China's aggressive expansion, Europe's pragmatic pivot, and the Middle East's ambitious entry into the nuclear arena.
The Numbers That Changed Everything
Global electricity consumption from data centers, artificial intelligence and the cryptocurrency sector is expected to double from an estimated 460 terawatt-hours (TWh) in 2022 to more than 1,000 TWh in 2026.
The US has 3,000 data centers today, with thousands more coming by 2030. Big Tech plans to invest $320-325 billion in infrastructure by 2025—a 46% jump from 2024.
Analysts project that up to 25 gigawatts of new data center demand could arrive on U.S. grids by 2030. That's roughly 25 nuclear plants worth of baseload power.
The math is stark:
AI training runs need consistent power that never stops. Wind and solar can't deliver that reliability at scale.
Big Tech's Nuclear Bet
The tech giants aren't just talking—they're signing billion-dollar contracts that reshape energy markets:
Microsoft is restarting Three Mile Island Unit 1 through a deal with Constellation Energy, bringing the infamous reactor back online specifically to power AI workloads. The 20-year agreement demonstrates Microsoft's commitment to nuclear baseload power.
Amazon committed $500 million to small modular reactors with Dominion Energy, plus plans to colocate a data center near Talen Energy's nuclear facility in Pennsylvania. Amazon's strategy focuses on direct nuclear power purchase agreements that bypass traditional grid infrastructure.
Google signed a groundbreaking deal with Kairos Power, a next-generation nuclear company that recently received construction approval for two demonstration reactors from the US Nuclear Regulatory Commission. Google's approach emphasizes advanced reactor technologies over traditional designs.
TerraPower secured a major boost when Nvidia, through its venture capital arm NVentures, joined Bill Gates and HD Hyundai in raising $650 million. This investment shows that even GPU manufacturers recognize nuclear power as essential infrastructure for AI development.
These partnerships represent more than energy procurement—they signal a fundamental shift in how technology companies approach infrastructure planning.
Nuclear power provides the baseload capacity, carbon-free operation, and grid independence that matches AI's operational requirements.
China's Nuclear Dominance Strategy
China isn't just participating in the nuclear renaissance—it's leading it with unprecedented scale and strategic focus. As of January 2025, there were 61 units under construction worldwide, with almost half (29) under construction in China. This construction pace dwarfs every other nation combined.
China's State Council approved the construction of 10 new nuclear generating units in April 2025, with a total investment of 200 billion yuan ($27.44 billion). These projects include five nuclear power plants—Fangchenggang Phase III, Haiyang Phase III, Sanmen Phase III, Taishan Phase II and Xiapu Phase I—with eight Hualong One reactor units.
By 2024, China achieved full localization of key main equipment for its nuclear plants, ensuring independent control over vital technologies and delivering 114 sets of domestic nuclear power equipment, doubling the number from 2023. This technological independence gives China significant advantages in cost control and deployment speed.
China's nuclear ambitions extend far beyond domestic energy needs. China plans to build as many as thirty nuclear power reactors in countries involved in the Belt and Road Initiative by 2030. China General Nuclear Power Corporation (CGN) plans to increase efforts to sell the Hualong reactor in Central and Eastern Europe, Africa, Southeast Asia and elsewhere.
This export strategy serves multiple purposes: establishing China as the dominant nuclear technology supplier, creating long-term energy dependencies among partner nations, and generating revenue streams that fund continued domestic nuclear development.
China is also pushing the boundaries of nuclear technology. A Chinese thorium molten salt reactor came online in June 2024 and recently went through refueling without shutting down—a significant advancement over conventional reactors that generally need to be stopped to replenish fuel supply.
By mid-century, fast neutron reactors are seen as the main technology for China, with a planned 1400 GW capacity by 2100. This long-term vision positions China to lead the next generation of nuclear technology while other nations struggle with current-generation deployments.
Europe's Nuclear Pragmatism
Europe presents a complex nuclear landscape shaped by energy security concerns, climate commitments, and geopolitical realities. Nuclear power generated just over a fifth (21.8%) of the EU's electricity in 2022, with 12 EU countries currently including it in their energy mix.
France: Nuclear Leadership in Europe
France derives about 70% of its electricity from nuclear energy due to a long-standing policy based on energy security, making France the world's largest net exporter of electricity due to its very low cost of nuclear generation.
In 2015, France envisioned reducing the share of nuclear power from 70% to 50% by 2025. However, the importance of nuclear energy in the country's electricity system, along with its commitment to maintaining a low-carbon energy supply, led to changes in policy. France now advocates for nuclear power as central to EU decarbonization strategy.
In December 2024, France demanded nuclear-friendly replacements for renewable energy directives, calling for nuclear power to be brought into the center of EU decarbonization policy. This represents a significant shift from previous EU policies that favored renewables over nuclear.
EU Policy Tensions
European Union plans for new renewable energy goals hit early resistance from pro-nuclear governments, who indicated they would not back goals that exclude atomic energy. This tension reflects broader debates about energy sovereignty and technological neutrality in climate policy.
Total generation investment needed in Europe amounts to about €40 billion per year to 2025, rising to €40-80 billion per year from 2030, including gas turbines, nuclear plants and carbon capture storage. These investment requirements highlight the scale of Europe's energy transformation challenge.
Nuclear Renaissance Drivers
Renewed European interest in nuclear shows how some countries are hedging their bets in pursuit of more energy independence. The Russia-Ukraine conflict accelerated European recognition that energy security requires diverse, domestically controlled sources.
European nuclear development faces unique challenges: aging reactor fleets requiring replacement or life extension, complex regulatory environments across multiple jurisdictions, and public opinion that varies dramatically between pro-nuclear France and nuclear-skeptical Germany.
Middle East: Nuclear Energy's New Frontier
The Middle East represents nuclear energy's most dynamic emerging market, driven by economic diversification goals, growing electricity demand, and regional competition for technological leadership.
UAE: Leading Arab Nuclear Development
The UAE is the only nation in the Arab world currently operating nuclear power plants. In September 2024, the final reactor at the Barakah facility entered commercial operation, enabling the facility to achieve its full capacity of 5.6 gigawatts.
The United Arab Emirates will tender shortly for the construction of a new nuclear power plant that would double the number of the small Gulf state's nuclear reactors. This expansion reflects the UAE's commitment to nuclear power as a cornerstone of its energy strategy.
The UAE's approach emphasizes international partnerships and strict non-proliferation commitments. The UAE has committed not to enrich uranium itself and not to reprocess spent fuel, establishing a model for peaceful nuclear development that other regional players study closely.
Saudi Arabia's Nuclear Ambitions
Saudi Arabia has plans to establish a civil nuclear power industry, but with a different approach than the UAE. Saudi Arabia announced plans to enrich and sell uranium, with the kingdom scrapping light-touch oversight of its nuclear facilities by the U.N. atomic watchdog and switching to regular safeguards by the end of 2024.
Saudi Arabia is working toward constructing its own nuclear power plants, while the remaining GCC states are exploring the nuclear option—in particular, new advanced nuclear reactor technologies including SMRs.
Regional Strategic Implications
The Middle East's nuclear development occurs within a complex geopolitical context. Regional nuclear capabilities raise questions about proliferation risks, strategic balance, and the relationship between civilian nuclear programs and potential military applications.
Based on international data, nuclear remains the dispatchable low-carbon technology with the lowest expected costs in 2025, with the only cost-comparable alternative being large hydro projects. For resource-rich Middle Eastern nations, nuclear power offers both energy security and technological prestige.
The Technology Edge: Why Nuclear Wins for AI
Small modular reactors (SMRs) represent more than scaled-down versions of conventional plants. Modern SMR designs incorporate passive safety systems, underground deployment, and modular construction that addresses historical nuclear challenges.
SMR Advantages for Data Centers
SMRs offer several characteristics that align perfectly with data center requirements:
Factory construction with quality control: Standardized manufacturing reduces costs and improves reliability
Standardized licensing processes: Simplified regulatory approval compared to custom reactor designs
Flexible deployment scenarios: Can be sited closer to load centers without extensive transmission infrastructure
Reduced construction timelines: Modular assembly accelerates deployment compared to traditional plants
TRISO Fuel: The Safety Revolution
TRISO (tri-structural isotropic) fuel technology adds another safety layer that makes nuclear power more viable for distributed applications. Unlike conventional uranium oxide fuel that can melt under extreme conditions, TRISO particles maintain integrity at temperatures exceeding 1,600°C. They're essentially meltdown-proof.
Standard Nuclear claims to be the largest source of TRISO fuel outside China, based on production capacity. This technology is essential for SMRs and advanced reactor designs that promise to revolutionize nuclear deployment.
Real Projects Breaking Ground
TerraPower has begun construction on its 345-MW Natrium sodium-cooled fast reactor in Wyoming. TerraPower announced a memorandum of understanding with a major U.S. data center developer to deploy advanced nuclear reactors to power existing and future facilities.
X-Energy secured $700 million in Series C-1 funding in early 2025, following a $500 million round in late 2024. Their Xe-100 reactor generates 80 MW per unit and scales to 960 MW, designed specifically for industrial applications including data centers.
BWXT Technologies will build the first advanced nuclear microreactor in the United States. The U.S. Department of Defense selected the company in 2022 to manufacture a full-scale mobile microreactor prototype for testing.
Investment Flows and Market Dynamics
Since 2021, venture capitalists have invested $2.5 billion in US next-generation nuclear technology, compared to near-zero investment in previous years. The calculation has shifted: AI demand, Chinese competition, and government support make nuclear ventures attractive despite regulatory complexity.
Defense Applications Drive Development
The Defense Department adds urgency to nuclear development, seeking microreactors for ships, Arctic bases, and Pacific islands. Military applications offer several advantages for nuclear startups:
Defined customers with clear requirements: Eliminates market uncertainty that plagues civilian nuclear development
Performance specifications: Military needs drive technology advancement beyond civilian applications
Reduced regulatory complexity: Defense applications can bypass some civilian nuclear licensing requirements
Revenue streams: Military contracts provide funding during lengthy civilian deployment timelines
Venture Capital's Nuclear Bet
The venture capital embrace of nuclear startups reflects fundamental shifts in risk assessment. Historical nuclear investments were dominated by utilities and government agencies with decade-long investment horizons. Today's venture investors bet that AI demand, supply chain vulnerabilities, and government support create market conditions favoring rapid nuclear deployment.
The investment thesis extends beyond individual company success to ecosystem development. Nuclear requires specialized supply chains, workforce development, and regulatory frameworks that benefit from coordinated investment across multiple startups.
Strategic Vulnerabilities and Supply Chain Challenges
America's nuclear lag isn't merely economic—it's strategic. The uranium supply chain presents immediate vulnerabilities that current geopolitical tensions have made untenable.
Uranium Supply Dependencies
Russia controls approximately half the world's enriched uranium market and supplies about one-quarter of America's nuclear fuel. The U.S. abandoned domestic uranium mining and enrichment capabilities decades ago, creating dependencies that current geopolitical tensions have made dangerous.
New startups are attempting to rebuild this supply chain, but the timeline is unforgiving. Uranium enrichment requires specialized facilities, skilled workforce, and years of development that cannot be quickly replicated.
International Competition Pressures
China's nuclear construction pace and Russia's supply chain control create strategic vulnerabilities that purely market-based solutions may not address quickly enough. Government support through procurement, loan guarantees, and regulatory reform will likely determine whether American nuclear startups can compete effectively.
China's 29 reactors under construction represent not just domestic energy policy but global market positioning. Chinese nuclear technology exports through the Belt and Road Initiative create long-term dependencies that extend China's influence across multiple continents.
Regulatory Environment: Opportunities and Risks
President Trump's nuclear executive orders reflect political momentum, but regulatory implementation remains complex. The orders propose allowing reactors on federal lands, potentially bypassing traditional Nuclear Regulatory Commission oversight.
Streamlined vs. Safety Oversight
The regulatory environment presents both opportunities and risks for nuclear development:
Opportunities: Streamlined processes could accelerate deployment timelines that have historically plagued nuclear projects. Advanced reactor licensing frameworks specifically designed for SMRs and microreactors could reduce regulatory uncertainty.
Risks: Startups without operational track records face scrutiny regarding safety culture and technical competence. The NRC's evolving approach to advanced reactors will significantly influence commercial viability.
International Regulatory Competition
Different regulatory approaches across major nuclear markets create competitive advantages and disadvantages. China's centralized nuclear development enables rapid deployment but may compromise international market acceptance. European regulatory harmonization efforts could create competitive advantages for EU-based nuclear technology.
The UAE's successful nuclear deployment demonstrates that new nuclear nations can achieve international standards through careful partnership selection and regulatory compliance.
The Bottom Line: Nuclear Power's AI Future
Nuclear power will be a key part of new energy infrastructure built to meet surging data-center power demand driven by artificial intelligence. The question isn't whether AI will need nuclear power—it's whether different regions can execute their nuclear strategies effectively.
Regional Outcomes
China is positioning itself as the dominant global nuclear technology supplier through massive domestic deployment and aggressive export strategies. Chinese nuclear success could create technological dependencies similar to current semiconductor supply chains.
Europe faces complex tradeoffs between energy security, climate goals, and political feasibility. European nuclear policy will likely determine whether the region maintains technological sovereignty or becomes dependent on Chinese or American nuclear technology.
The Middle East represents nuclear energy's fastest-growing market, driven by economic diversification and regional competition. Success in peaceful nuclear development could establish new models for nuclear technology deployment in developing nations.
The United States must rebuild nuclear capabilities that were abandoned decades ago while competing against Chinese scale and European experience. American nuclear success depends on venture capital investment, government support, and regulatory reform working together effectively.
The Strategic Imperative
Companies like Standard Nuclear—employees working for months without pay, selling homes, betting their careers on unproven technology—represent America's best shot at nuclear leadership. Their success determines whether the United States controls its technological future or cedes it to competitors.
The nuclear renaissance isn't about environmental benefits anymore—it's about powering the AI revolution and maintaining technological sovereignty. China's nuclear dominance strategy, Europe's pragmatic pivot, and the Middle East's ambitious entry create a complex global competition where nuclear capability equals strategic advantage.
Nuclear power has become the essential enabler of AI development, and the nations that master nuclear technology first will control the future of artificial intelligence.
About the author: Rupesh Bhambwani is a technology enthusiast specializing in the broad technology industry dynamics and international technology policy.
When not obsessing over nanometer-scale transistors, energy requirements of AI models, real-world impacts of the AI revolution and staring at the stars, he can be found trying to explain to his relatives why their smartphones are actually miracles of modern engineering, usually to limited success.
Love the write-up. I am bullish nuclear myself, especially with the most recent policy tailwinds. I'm surprised you didnt speak on HALEU and its use for SMR's. We do have a domestic supplier in the US: LEU