Bloomberg: hyperscalers eye nuclear power

Bloomberg reported on May 13 that AI hyperscalers are considering going beyond power-purchase agreements and into the next-generation nuclear supply chain as they try to secure electricity for data centers. The report said tech companies are exploring investments tied to small modular reactors, including fuel and other upstream components, as grid constraints become a planning issue for large computing campuses. Bloomberg’s report builds on a series of nuclear power deals announced over the past two years by Microsoft, Google, Amazon and Meta. ### Which companies have already signed nuclear deals? Microsoft signed a 20-year power purchase agreement with Constellation on Sept. 20, 2024, to support the restart of Three Mile Island Unit 1 in Pennsylvania, renamed the Crane Clean Energy Center. Constellation said the restart would add about 835 megawatts of carbon-free electricity to the grid and support Microsoft data centers in the PJM region. (bloomberg.com) Google said on Oct. 14, 2024, that it had signed what it called the first corporate agreement to buy power from multiple small modular reactors. Kairos Power said the arrangement creates a path to deploy up to 500 megawatts of advanced nuclear projects by 2035, with the first reactor targeted for 2030. Amazon said on Oct. 16, 2024, that it was backing X-energy projects with Energy Northwest in Washington state. (constellationenergy.com) Amazon and X-energy said the first phase would total about 320 megawatts, with an option to expand to 960 megawatts, and that the projects were aimed at meeting power demand in the early 2030s. ### Why are hyperscalers looking past ordinary grid purchases? (kairospower.com) Bloomberg said the latest discussions center on moving deeper into the supply chain for small modular reactors rather than relying only on future electricity purchases. The report said the goal is to improve certainty around power availability for AI infrastructure, which is forcing companies to think about generation, fuel and siting together. (x-energy.com) Meta said on Dec. 3, 2024, that it would seek proposals for 1 to 4 gigawatts of new nuclear generation in the United States to support its AI and sustainability goals. The company said it was looking for developers that could help accelerate new nuclear availability and scale multiple units. Those moves show a shift from buying renewable credits or signing standard utility contracts toward securing firm, around-the-clock supply. (bloomberg.com) Bloomberg reported that some tech companies are now examining whether direct investments in reactor inputs could reduce bottlenecks that might otherwise slow deployment. ### What does “small modular reactor” mean in these deals? (sustainability.atmeta.com) Kairos Power said its agreement with Google covers a fleet approach, with reactors to be developed, constructed and operated over time rather than as a single large plant. Energy Northwest described the Washington project backed by Amazon and X-energy as a phased facility near Richland, Washington, beginning with four units and potentially expanding to 12. (bloomberg.com) Bloomberg’s report focused on the supply chain around those projects. That includes reactor fuel and related manufacturing capacity, areas that remain less developed than the supply chains behind conventional gas-fired generation, according to the report. ### How does this affect where data centers and chip capacity get built? (kairospower.com) Constellation said the Microsoft agreement would keep the restarted Pennsylvania unit online for decades, tying a long-lived power asset to a region with heavy data-center demand. Meta said its RFP would focus on projects that can support its broader U.S. data-center portfolio, especially where it already has operations or significant electricity demand. (bloomberg.com) Amazon said its Washington projects are intended to meet forecast energy needs in the Pacific Northwest beginning in the early 2030s. Bloomberg reported that dedicated nuclear capacity is becoming part of how hyperscalers think about long-term infrastructure planning as AI workloads raise the value of firm power. ### What comes next for these nuclear plans? (constellationenergy.com) Kairos Power and Google said the first reactor under their agreement is intended to come online by 2030, with additional deployments through 2035. Constellation said the Crane Clean Energy Center restart tied to Microsoft is targeted for 2028, while Amazon’s Washington projects are aimed at the early 2030s and Meta has already run a developer solicitation for up to 4 gigawatts of new U.S. nuclear capacity. (blog.google) (aboutamazon.com)