Private nuclear can solve data center energy crunch
The article proposes that private nuclear energy, particularly advanced microreactors, can solve the escalating energy demands of AI data centers, which are contributing to rising electricity bills. It highlights several companies and states investing in these technologies as a way for large energy users to generate their own power. The author criticizes states considering data center moratoriums, arguing that innovation in energy supply is a better solution than restricting demand.
Residential electricity prices have surged 27% since 2019 and are projected to climb another 40% by 2030, largely due to the massive energy demands of artificial intelligence (AI) data centers. In Florida, utility giant Florida Power & Light has pursued rate increases for years, with data center demand adding fresh pressure.
Iulia Lupse, founder of I&A Communications Solutions, argues that private nuclear solutions offer a path forward. She highlights Ampera, a Palm Beach Gardens startup developing compact thorium microreactors designed to power data centers and other sites without refueling. These units are built for mass production, potentially lowering the cost of reliable power.
Other states are also embracing this innovation: Kairos Power broke ground on the Hermes 2 reactor in Oak Ridge, Tennessee, under a deal with the Tennessee Valley Authority to power Google data centers. Radiant Industries is also building a microreactor factory in Oak Ridge, attracted by state funding and workforce. In Texas, Last Energy relocated to Austin and is advancing a pilot with Texas A&M, while the state has opened applications for $350 million in nuclear development funding. Meta has committed to prepaying Oklo for power from its planned 1.2 gigawatt advanced nuclear campus in Pike County, Ohio.
Lupse criticizes states like New York, where lawmakers are considering a three-year moratorium on permits for new high-energy data centers. She contends that while data centers do strain the grid, blaming demand rather than fixing supply ignores the public's reliance on AI tools and the global technological competition. Instead, states should foster private nuclear innovation to increase energy supply and ultimately lower costs for ratepayers.