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Policymakers assess nuclear energy for AI data centers
Big tech vendors are recognizing the energy demands of their AI services, causing them to make significant energy investments.
Meta, Microsoft, Amazon and Google are investing in nuclear energy to power AI data centers. As AI drives new energy investments, lawmakers are weighing the pros and cons of nuclear energy while debating budget cuts for U.S. energy research and innovation.
The House Subcommittee on Energy held a hearing Thursday to discuss growing investments from big tech vendors in nuclear energy, a high-capacity and low-carbon power source for AI data centers. While traditional data centers already consume significant amounts of electricity, AI is generating even more energy demand.
According to a Department of Energy (DOE) report from last year, U.S. data centers consumed 4.4% of U.S. electricity in 2023. With the rise in AI services generating greater electricity needs, the report anticipates that data centers will consume between 6.7% to 12% of total U.S. electricity by 2028.
"Their energy use would rise from 25 gigawatts to 80 gigawatts," said Rep. Randy Weber (R-Tx.), subcommittee chairman. "One gigawatt of energy equates to roughly 294 utility-scale wind turbines, 1.8 million solar panels, 103 offshore wind turbines. Or, one large light-water nuclear reactor, which is why we're here."
Amazon released plans in October 2024 to invest more than $500 million in nuclear energy, including a plan to co-locate a data center near Talen Energy's nuclear facility in Pennsylvania. Google also revealed nuclear energy investments in October 2024 and recently entered into an agreement with Elementl Power to develop three advanced nuclear reactor sites.
Microsoft signed a 20-year purchase agreement with Constellation Energy that will launch the Crane Clean Energy Center and restart a nuclear reactor at Three Mile Island, in Pennsylvania. Meta also entered into a 20-year purchase agreement with Constellation Energy for nuclear energy provided by the Clinton Clean Energy Center in Illinois.
"Due to these immense energy demands, major technology companies and hyperscalers who traditionally sit on the energy sidelines are now climbing into the driver's seat to secure their long-term power supply," Weber said. "Nuclear has emerged as the ideal energy source given its clean baseload power and unmatched reliability."
While tech companies invest in nuclear energy, Rep. Zoe Lofgren (D-Calif.) voiced concerns that the U.S. isn't making the same investments to support the power needs of growing AI infrastructure. President Donald Trump issued an executive order in May to reinvigorate nuclear energy production. The administration has supported private sector investment while the U.S. assesses where to remove regulatory hurdles.
The Trump administration's proposed FY26 budget request includes a 21% cut to the DOE's Office of Nuclear Energy and a 51% funding cut to its Advanced Reactor Demonstration Program, as well as cuts to the DOE's loan guarantee program for nuclear investment.
"It would cut tax incentives that industries told us are critical, in tandem with the robust federal loan program, to enabling the widespread deployment of new nuclear power plants," Lofgren said.
Investing in nuclear to power AI data centers
Data center construction in North Carolina alone has risen dramatically in the last year, said Rep. Deborah Ross (D-N.C.). This month, Amazon released plans for a $10 billion investment in AI data centers in the state.
"AI data centers are particularly unique in their energy requirements, with some calling for 24/7 supply at a massive scale," she said. "That scale is only projected to grow as hyperscalers invest billions of dollars toward these centers."
Ross said lawmakers will need to consider the effects of both rapid AI data center expansion and accelerated nuclear energy investments. Not only does constructing new AI data centers pose environmental risks, but nuclear energy itself also carries its own risks. Large nuclear facilities including at Three Mile Island in 1979 and Fukushima in Japan in 2011 shut down after disastrous nuclear meltdowns.
Also, building out new energy sources like advanced nuclear reactors could risk excessive costs and long construction timelines, Ross said.
Kathleen Barrón, executive vice president and chief strategy and growth officer at Constellation Energy, testified that it will be crucial for Congress to support siting new nuclear plants at locations already hosting nuclear reactors, such as what the company is doing at Three Mile Island.
"These sites have already been proven to meet environmental and safety-related regulatory requirements," she said. "They also have land available where we could host sites like data centers that can co-locate and minimize the need for additional electrical infrastructure and transmission."
Developments in nuclear energy, known as advanced and next-generation nuclear, have been designed to be safer and more efficient than traditional nuclear energy. Indeed, advanced nuclear technologies show promise and Congress has enacted bipartisan legislation to explore and advance the technology, Lofgren said. China's significant investments in AI infrastructure, including nuclear energy, make her concerned about the DOE budget cuts, she said.
Pat Schweiger, CTO at advanced nuclear technology company Oklo, said energy is the "foundation upon which America's AI future depends." The U.S. needs to consider a few policy changes to accelerate advanced nuclear deployment, including continued investment in next-generation research, he said.
"U.S. government research is driving American nuclear innovation," he said.
While Barrón applauded the Trump administration's goals to boost nuclear energy in the U.S., she advocated for continuing the DOE loan programs as well as its nuclear research and development efforts.
Makenzie Holland is a senior news writer covering big tech and federal regulation. Prior to joining Informa TechTarget, she was a general assignment reporter for the Wilmington StarNews and a crime and education reporter at the Wabash Plain Dealer.
