The cooling towers of a nuclear power plantWlad74/Getty Images
Tech giants like Amazon and Microsoft are striking nuclear power deals for their AI data centers.
The nuclear power resurgence is driven by clean energy demand and AI’s soaring power needs.
These nuclear-focused stocks have soared this year amid an ongoing nuclear renaissance.
The nuclear power industry is undergoing a renaissance as demand for clean power soars across the country, partly driven by the soaring energy needs associated with artificial intelligence data centers.
Mega-cap technology companies, including Amazon, Microsoft, and Alphabet, have inked nuclear power deals to feed their growing energy needs as AI becomes a bigger part of their businesses.
One utility company is even restarting the Three Mile Island nuclear power plant after inking a 20-year deal to sell the power to Microsoft.
Three Mile Island, located on the Susquehanna River in Pennsylvania, was the site of the country’s worst nuclear accident in 1979.
Meanwhile, Amazon has led a $500 million financing round for a company developing modular nuclear reactors and purchased a nuclear-powered data center in March for $650 million.
“One of the fastest ways to address climate change is by transitioning our society to carbon-free energy sources, and nuclear energy is both carbon-free and able to scale—which is why it’s an important area of investment for Amazon,” Amazon Web Services CEO, Matt Garman, said in a press release.
Analysts on Wall Street are encouraged, too.
“The nuclear energy projects involve the construction of several Small Modular Reactors (SMRs), a compact, advanced type of reactor that can be built closer to grids and completed faster than traditional reactors. SMRs also offer the potential to reduce carbon emissions, paving the way for cleaner, more sustainable energy,” CFRA analyst Arun Sundaram said in a note last week.
He added: “With the full power of AI dependent on both data centers and energy infrastructure, these investments further help AMZN secure its positioning as a leading…
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