Key Takeaways
- Big Tech’s increasing energy needs for AI are sparking renewed interest and investment in nuclear power.
- Small Modular Reactors (SMRs) are a hot topic, attracting significant funding, though experts debate their practical viability and cost-effectiveness.
- Despite disagreements on reactor types, there’s general optimism that new attention will help “unstick” and grow the U.S. nuclear industry.
- Several major tech companies like Microsoft and Amazon are investing in nuclear projects, including restarting old plants and developing new SMRs.
- The nuclear sector faces a wave of retirements, creating many career opportunities for a new generation of engineers and professionals.
Nuclear energy, long hampered by a challenging public image, is finding an unexpected ally in Big Tech. Companies eyeing solutions for the massive energy demands of artificial intelligence are turning to nuclear, a development welcomed by many engineers and experts as a positive shift, according to Business Insider.
Much of the current excitement, and funding, centers on small modular reactors, or SMRs. These are generally defined as smaller reactors producing around 300 megawatts, compared to a traditional reactor’s 1,000 megawatts.
However, debate exists within the industry about their true potential. “Nuclear engineers have strong opinions,” Christopher Perfetti, an associate professor of nuclear engineering at the University of New Mexico, told Business Insider. “Some people are salty about whether SMRs are truly viable, or whether or not we should just be building more light water reactors. I want us to build whatever.”
Perfetti, formerly with Oak Ridge National Laboratory, believes that “just building something will kind of get nuclear unstuck and hopefully get more momentum.” Currently, no SMRs are operational in the U.S., with only a few active or under construction globally.
Allison MacFarlane, a former chairman of the U.S. Nuclear Regulatory Commission, expressed caution to Business Insider. “The vendors are saying, these reactors are cheaper, these reactors are safer, but we don’t know, because they’ve never been built [in the US].”
MacFarlane highlighted the immense financial commitment required for any nuclear reactor, noting that delays often lead to spiraling costs. She referenced Georgia’s Plant Vogtle units, which more than doubled their projected cost to $36.8 billion.
“It’s going to be expensive to build a demonstration model, and then you’ve got to get your supply chains going. And for most of the SMRs, these supply chains don’t exist,” MacFarlane said. She remains a proponent of traditional large reactors, arguing they are more feasible and cost-efficient due to economies of scale.
Despite differing views on SMRs, the influx of money and attention is widely seen as beneficial. Ricky Witt, who works in radiological safety at the Sequoyah Nuclear Plant, told Business Insider this new wave is “very real.”
Historically, the U.S. had 54 operating nuclear reactors as of 2023, supplying about 20% of the country’s electricity from 1990 to 2021. Costs rose over time due to on-site construction needs, lack of standard designs, and regulations, leading to a slowdown from its peak of 112 plants in 1990, especially with competition from cheaper natural gas plants and incidents like Chernobyl and Three Mile Island staining its image.
“I think going forward, nuclear is going to expand in our country,” Witt said. “SMRs will be part of that. Whether it actually happens or not, we don’t know, but what I see is building some other nuclear power plants and maybe opening some plants that we’ve shut down already.”
This renewed interest has indeed given some decommissioned plants a new lease on life. Microsoft invested in restarting a plant in New York and is backing efforts for the Palisades plant in Michigan. Amazon has committed $500 million to X-Energy for SMR development, while Meta began exploring nuclear partnerships in late 2023.
“We need smart solutions that can help us meet growing energy demands while also addressing climate change,” said Amazon’s Kevin Miller. The Duane Arnold Energy Center in Iowa, closed in 2020, might also reopen.
Venture capital is flowing. Data firm PitchBook noted in a May report that energy investments were a “bright spot” in Q1, with “geothermal and nuclear technologies continue to gain investor confidence.” The Tennessee Valley Authority has also submitted a permit request to build its own small nuclear reactor.
“We don’t want to say trying to make something better is ever bad,” Witt observed. “The more that we try to improve, the more we try to come up with new technologies — I think that’s just better for everybody.”
This resurgence could also attract vital new talent to a field needing fresh blood. Perfetti described it as “quite an exciting time in nuclear,” with venture-backed startups pushing innovative reactor designs.
For young professionals, Perfetti believes nuclear offers fertile ground. “There are lots of career opportunities in nuclear, in part because nuclear is faced with a wave of retirements right now,” he explained. “They’re looking at younger people to replace them, so there’s lots of quick promotion opportunities.”
