We frequently consider renewables such as solar, wind, and geothermal energy as sources of clean power for data centers. However, nuclear energy is more reliable, produces less waste, and is generated more efficiently than any of them.
The U.S. is well ahead of the rest of the world in terms of nuclear power generation, with 93 active plants. However, the U.S. has very few plants under construction, and many are being decommissioned. Meanwhile, China is making significant investments in developing new plants and is on track to overtake the U.S. Over the past ten years, China has added 37 nuclear reactors, and many more are under construction. The U.S. has added only two.
However, the White House Office of Science and Technology Policy (OSTP) is shifting that trend by classifying nuclear power as clean energy and advocating for onsite nuclear power to address the massive energy consumption of data centers.
Why the U.S. Doesn’t Go Nuclear
A few factors are limiting the development of nuclear power plants in the US.
Negative Public Perception
Negative public perception creates a roadblock to nuclear power development in the U.S. Americans have a visceral reaction to nuclear power stemming from past disasters and the threat of nuclear war. That perception doesn’t necessarily reflect reality, however.
For example, the Fukushima and Chernobyl meltdowns could have been prevented with proper maintenance and adherence to international standards. In fact, the five worst meltdowns could all have been prevented. Nuclear warheads taint the image of nuclear power, but nuclear power is a controlled reaction, while nuclear weapons are an uncontrolled reaction. They use the same process (nuclear fission) differently.
It’s true that radioactive waste is dangerous and has a long half-life. However, all the nuclear waste that’s ever been generated in the U.S. could fit in a Walmart. High-level radioactive waste is best stored in deep geological repositories after it’s allowed to decay safely for a period of time. Researchers are also investigating safe, environmentally sound alternatives for disposing of radioactive waste that cannot be recycled.
Cost and Time Investments
The upfront cost of building a full-scale nuclear power plant is massive and hard to predict accurately. For example, new reactors were recently built in Georgia. The projected cost was $14 billion with a 2017 completion date. The actual cost ended up being nearly $35 billion, and the reactors weren’t operational until this year, 2024.
Supply Chain and Regulations
Nuclear power plants' massive cost and construction time are due to a diminished supply chain and strict, often evolving regulations governing their development. As nuclear power development withered, the supply chain dried up. New developers no longer benefit from economies of scale since development is so infrequent. Additionally, strict safety measures and regulations are imposed upon nuclear facilities often delaying construction. If something isn’t up to code, it often needs to be reworked, which impacts both timeline and budget.
Are Nuclear-Powered Data Centers the Future?
Nuclear power makes sense for data centers, which collectively account for about 2 percent of U.S. energy usage. As demand for AI and other compute-intensive services increases, data center energy demands will climb. Some publications are predicting that data centers could use 20 percent+ of U.S. energy by 2030. In traditional data center markets such as Silicon Valley and Northern Virginia, utility companies are already struggling to keep up with rising demands.
Most data centers are dependent on the electric grid for power. The electric utility may use a combination of fossil fuels and clean energy sources. Nuclear power gives data centers greater control over reliability and emissions. However, as mentioned previously, building a nuclear power plant involves massive costs, long construction lead times, and strict regulation.
Data center operators aren’t likely to build nuclear power plants from scratch but have two other viable options.
Building a Data Center Near a Nuclear Facility
Some data center operators are starting to build facilities near existing nuclear power plants. Proximity enables the data center to increase power reliability by eliminating legacy transmission and distribution systems. It also significantly reduces the cost of power.
Utilize Small Modular Reactor (SMR) Technology
Advanced SMRs are an emerging technology that promises to revolutionize nuclear power generation. The SMRs currently under development use various technologies and come in different sizes with different capabilities. What they share is a relatively small footprint, making them suitable for a wide range of locations. They are also much cheaper to build than a full-scale nuclear reactor.
Planning for Future Use
After years of review and revision, the Nuclear Regulatory Commission has started to approve the construction of these small modular reactors, and developers are proactively purchasing land. The data center industry is so starved for power that some operators are already making pre-payments to secure access to potential nuclear power before SMR construction even starts.
Innovative Solutions for a Rapidly Changing Industry
At Enconnex, we love tracking these developments and watching the data center industry evolve. We have a long history of developing innovative solutions to address the data center industry’s greatest challenges. We invite you to contact one of our specialists to explore how we can help you today and in the future.
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