The rapid growth of artificial intelligence is leading major technology companies to reconsider how they power their data centres, with nuclear energy emerging as a serious alternative. Amazon, Google, Meta and Microsoft are increasing their investment in atomic power to meet rising electricity needs, shifting away from their previous reliance on wind and solar sources.
Previously focused on renewables, Big Tech is now aligning with government efforts to expand nuclear energy. AI is projected to drive a 160% increase in US electricity demand by 2030 and leaders in the industry are concerned that existing power sources will not be sufficient. In response, these companies have committed to supporting a tripling of nuclear capacity worldwide by 2050 and are securing long-term supply contracts to guarantee a steady energy supply.
Microsoft intends to restart a decommissioned nuclear reactor in the US. Meta is seeking partners to develop new nuclear projects. Amazon and Google are supporting small modular reactor technology, which allows for quicker and more cost-effective deployment. In addition, Meta has agreed to a 20-year deal to increase output at an existing US nuclear facility, which supplies power to around 800,000 homes. These actions are aligned with growing policy support, including an $80 billion US government initiative to simplify nuclear development and boost domestic uranium production.
This renewed focus on nuclear energy is also having an impact on the uranium market. Analysts believe AI-driven demand could widen an existing 184 million pound supply gap over the next decade. Uranium prices have already surpassed $80 per pound and could climb to $100 by 2026. In the US, where uranium production has lagged behind for years, there is strong motivation to restart mining operations.
American Uranium, for instance, expects its in-situ recovery project in Wyoming to gain momentum as supply shortages worsen. The site is located near a dormant Cameco facility that could resume operations within two years. The Lo Herma project is set to benefit from growing demand and high prices. The company is moving forward with drilling and aims to release an updated resource estimate by 2026, focusing on being prepared for the supply shortfall.
As AI workloads continue to expand, nuclear energy is shifting from a backup option to a core part of Big Tech's power strategy. With solid government support and increasing interest from investors, the rise of nuclear could reshape both the tech sector and the global energy landscape over the next ten years.
