From Gigawatts to Green: How Hyperscalers are Powering the Race to Decarbonization with Nuclear Energy
Rising energy demands, limitations of renewable energy sources, and net-zero commitments are driving nuclear energy adoption. Data center capacity expansion and AI and gen AI adoption growth lead to high power demand and electricity consumption. Renewable energy depends on local weather conditions and requires massive land use for power generation compared to nuclear plants. Net-zero commitments and regulatory pressures compel hyperscalers to seek low-carbon energy alternatives.
Historical mishaps, untested nuclear technologies, environmental considerations, and health and safety concerns contribute to the public’s perception of nuclear power. Simultaneously, nuclear projects face complex regulatory frameworks requiring multiple permits, licenses, and approvals.
Despite these challenges, the industry outlook remains positive, with nuclear capacity expected to hit a record high in 2025 due to small modular reactors’ safety and scalability. Policy and regulation changes, technology advances in the energy transition sector, and waste management considerations could be potential challenges. In this Viewpoint, we suggest strategic options for energy procurement, innovation capacity, and regulatory compliance.
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