nuclear energy for AI

Why Nuclear Energy is Back in the Spotlight

Updated on January 23, 2025

Nuclear energy has experienced a remarkable resurgence in interest, driven by a confluence of technological advancements, policy shifts, and the urgent need to decarbonize the global economy. Once sidelined due to high costs, safety concerns, and public opposition, nuclear power is now being championed by a diverse coalition of stakeholders, including AI tech billionaires and policymakers. 

This revival is not merely a nostalgic nod to the past, but a forward-looking strategy to address the dual challenges of climate change and energy security. 

However, the path to a nuclear renaissance is fraught with complexities, including lingering opposition, cost considerations, and competition from other renewable energy sources like solar and wind. This article explores the factors fueling the renewed interest in nuclear energy, its role in decarbonization efforts, and how it compares to other renewables in terms of deployment and cost.

Nuclear energy makes a comeback

nuclear energy for AI

The renewed interest in nuclear energy can be attributed to several key factors. First and foremost is the growing recognition and need for carbon-free baseload power. Unlike solar and wind, which are intermittent and dependent on weather conditions, nuclear power provides a stable and continuous electricity supply. This makes it an indispensable component of a decarbonized energy grid, particularly as the world transitions away from fossil fuels.

AI tech billionaires such as Bill Gates, Sam Altman, and Peter Thiel have emerged as vocal advocates for nuclear energy. Gates, through his company TerraPower, is investing in advanced nuclear technologies, including small modular reactors (SMRs), which promise to be safer, more efficient, and less costly than traditional reactors. 

Altman, the CEO of OpenAI, has backed Oklo, a company focused on developing compact, fast-acting nuclear reactors. These tech leaders see atomic energy as a critical enabler of the AI-driven future, where massive data centers and energy-intensive computations require vast amounts of reliable, clean power.

Policy shifts are also playing a pivotal role in the nuclear revival. Governments worldwide are increasingly incorporating nuclear energy into their climate strategies. The European Union, for instance, has included nuclear in its sustainable finance taxonomy, recognizing its role in achieving net-zero emissions. 

Similarly, the United States has allocated billions of dollars in funding for nuclear research and development under the Bipartisan Infrastructure Law and the Inflation Reduction Act. These policy measures provide much-needed financial support and regulatory clarity, encouraging private investment in nuclear technologies.

Nuclear’s role in decarbonization

Nuclear energy is uniquely positioned to play a central role in global decarbonization efforts. According to the International Energy Agency (IEA), nuclear power currently provides about 10% of the world’s electricity and is the second-largest source of low-carbon energy after hydropower. To meet the goals of the Paris Agreement and limit global warming to 1.5°C, the IEA estimates that nuclear generation will need to double by 2050.

One of the key advantages of nuclear energy is its high energy density. A single uranium fuel pellet, roughly the size of a pencil eraser, contains as much energy as one ton of coal or 149 gallons of oil. This efficiency translates into a small land footprint, making nuclear power an attractive option in densely populated regions with limited land availability. 

In contrast, solar and wind farms require vast expanses of land, which can lead to conflicts over land use and environmental degradation.

Moreover, nuclear power plants have a long operational life, typically exceeding 40 to 60 years, with the potential for extensions. This longevity ensures a stable and predictable energy supply, reducing the need for frequent reinvestment in new infrastructure. 

In comparison, solar panels and wind turbines have shorter lifespans, typically around 20 to 25 years, necessitating more frequent replacements.

Lingering opposition to nuclear energy

Opposition to nuclear energy

Despite its advantages, nuclear energy continues to face significant opposition. Safety concerns, stemming from high-profile accidents such as Chernobyl (1986) and Fukushima (2011), remain a major barrier to public acceptance. While modern nuclear reactors are designed with advanced safety features, the perception of risk persists, fueled by fears of radiation leaks and nuclear proliferation.

The issue of nuclear waste disposal also remains unresolved. Spent nuclear fuel, which remains radioactive for thousands of years, requires secure long-term storage solutions. Although technologies like geological repositories offer promising solutions, political and regulatory hurdles have delayed their implementation.

Cost is another critical challenge. Traditional nuclear power plants are capital-intensive, with construction costs often exceeding $10 billion and timelines stretching over a decade. In contrast, solar and wind projects can be deployed in months to a few years, with significantly lower upfront costs. The levelized cost of energy (LCOE) for nuclear power is generally higher than that of solar and wind, although this gap is narrowing with the advent of advanced nuclear technologies.

Nuclear vs. Solar and Wind: A comparative analysis

When comparing nuclear energy to solar and wind, several factors come into play. They include cost, deployment time, and scalability.

Cost: The LCOE for nuclear power ranges from $129 to $198 per MWh, according to the U.S. Energy Information Administration (EIA). In contrast, the LCOE for utility-scale solar is $29 to $38 per MWh, and for onshore wind, it is $26 to $54 per MWh. However, these figures do not account for the costs of grid integration and energy storage, which are necessary to address the intermittency of solar and wind. When these factors are included, the cost advantage of renewables diminishes.

Deployment Time: Building a traditional nuclear power plant typically takes 10 to 15 years, compared to 1 to 3 years for solar and wind farms. This lengthy construction period is a significant drawback, particularly in the context of the urgent need to reduce emissions. However, SMRs, designed to be factory-built and transported to the site, could reduce construction times to 3 to 5 years, making nuclear power more competitive.

Scalability: Solar and wind energy have seen exponential growth in recent years, driven by falling costs and supportive policies. In 2024, global solar capacity exceeded 2TW, and wind capacity surpassed the 1TW mark. Nuclear power, with a global capacity of  416 GW, lags behind but offers the advantage of baseload power, which is essential for grid stability.

Breakthroughs in nuclear technology

Source: International Atomic Energy Agency

Recent nuclear technology developments help address many of the challenges associated with traditional reactors. Small modular reactors (SMRs) are at the forefront of this innovation. SMRs are designed to be smaller, safer, and more flexible than conventional reactors, with capacities ranging from 50 to 300 MW. They can be deployed in remote areas, integrated with renewable energy systems, or used for industrial applications such as hydrogen production.

Companies like NuScale Power and Rolls-Royce are leading the charge with compact, scalable designs that offer enhanced safety features and lower costs. NuScale’s VOYGR SMR, for example, recently received regulatory approval in the U.S., paving the way for commercial deployment.

Another promising development is the emergence of advanced reactor designs, including molten salt reactors and fast reactors. These technologies offer enhanced safety features, higher efficiency, and the ability to utilize spent nuclear fuel, reducing the volume of radioactive waste.

Meanwhile, fusion power, long considered the “holy grail” of energy, is inching closer to reality. Companies like Commonwealth Fusion Systems and ITER are making strides in harnessing this virtually limitless, zero-carbon energy source.

Conclusion

The revival of nuclear energy represents a pivotal moment in the global transition to a low-carbon future. While challenges remain, the combination of technological innovation, policy support, and growing recognition of nuclear’s role in decarbonization is driving renewed interest in this powerful energy source. 

As the world grapples with the urgent need to reduce emissions, nuclear energy, solar, and wind, will be essential to achieving a sustainable and secure energy future. The question is not whether nuclear energy will play a role in this transition, but how quickly and effectively it can be deployed to meet the challenges ahead.

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