Can Nuclear Power Fuel Data Centers By 2035?

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May 24, 2025

New nuclear power could fuel 10% of data centers by 2035, but can it keep up with tech giants’ soaring energy needs? Discover the future of clean energy.

Financial market analysis from 24/05/2025. Market conditions may have changed since publication.

Imagine a world where the humming servers of massive data centers, powering everything from your social media feed to AI breakthroughs, run on clean, reliable energy. It’s not a distant sci-fi dream—it’s a reality that might be closer than you think. With data centers projected to consume an eye-popping 176 gigawatts by 2035, the race is on to find sustainable power sources. I’ve always found it fascinating how technology’s hunger for electricity is pushing industries to rethink energy in bold, innovative ways. Could nuclear power, often seen as a relic of the past, be the key to fueling this digital future?

The Surge in Data Center Energy Demand

The numbers are staggering. Data centers, the backbone of our digital lives, are expected to see their electricity demand skyrocket from 33 gigawatts in 2024 to as much as 176 gigawatts by 2035. That’s a five-fold increase in just over a decade. What’s driving this? Think artificial intelligence, cloud computing, and the endless streaming we all indulge in. These power-hungry operations need reliable, round-the-clock energy, and traditional sources like gas or renewables alone might not cut it.

According to industry projections, this boom in data center growth, alongside trends like transportation electrification, could push U.S. electricity demand up by 50% by 2050. It’s a challenge that’s both daunting and exciting. How do we keep the lights on for these digital behemoths without choking the planet? Enter nuclear power—a solution that’s reliable, low-emission, and surprisingly compact.


Why Nuclear Power Makes Sense

Nuclear energy has a bit of a PR problem, doesn’t it? For some, it conjures images of towering smokestacks or cautionary tales from decades past. But let’s set the record straight: modern nuclear power is a different beast. It’s reliable, with a high capacity factor that ensures steady energy output. It’s also low-emission, making it a darling for those chasing net-zero goals. And here’s the kicker—nuclear plants have a smaller physical footprint than sprawling solar farms or wind turbines, which is a big win for space-constrained data centers.

Nuclear power offers a unique combination of reliability and low emissions, making it a compelling choice for data centers.

– Energy industry expert

Perhaps the most intriguing aspect is nuclear’s competitive edge over time. While upfront costs are steep—think $6,000 to $12,000 per kilowatt compared to gas’s $1,200—nuclear plants operate for decades, spreading those costs thin. For tech giants like those building hyperscale data centers, this long-term value is a no-brainer.

The Role of Existing Nuclear Infrastructure

One of the smartest moves in this energy puzzle is leveraging what’s already there. Existing nuclear plants and retired coal sites are prime real estate for new capacity. Industry analysts estimate that these sites could support 10 to 20 gigawatts from nuclear plants and 20 to 30 gigawatts from converted coal facilities. That’s a significant chunk of the 35 to 65 gigawatts of new nuclear capacity expected by 2035.

Why repurpose these sites? They’re already wired into the grid, which saves time and money. Plus, converting coal plants to nuclear is like giving an old car a shiny new engine—it’s practical and sustainable. At least 11 states are eyeing these coal-to-nuclear conversions, signaling a shift toward cleaner baseload power.

Small Modular Reactors: The Game-Changer

Now, let’s talk about the new kid on the block: small modular reactors (SMRs). These compact powerhouses are stealing the spotlight, and for good reason. Unlike traditional reactors, SMRs are smaller, cheaper to build, and designed for flexibility. They can be deployed closer to data centers, offering what experts call grid islanding—the ability to operate independently if the main grid falters.

  • Secure fuel forms: SMRs use advanced fuel designs that are safer and harder to misuse.
  • Self-starting capabilities: They can kick into gear without external power, a boon for reliability.
  • Long operational periods: SMRs can run continuously for years, perfect for data centers that never sleep.

Tech giants are already jumping on the SMR bandwagon. Picture this: a major cloud provider signs a deal for 500 megawatts of SMR capacity by 2035, or another tech titan plans to deploy over 5 gigawatts by 2039. These aren’t hypotheticals—they’re real moves by industry leaders betting big on nuclear’s future.

Tech Giants Leading the Charge

It’s no surprise that the companies driving the data center boom are also pioneering nuclear solutions. Take the example of a major tech firm restarting an 835-megawatt reactor in Pennsylvania, set to be operational by 2028. This isn’t just a power plant—it’s a statement. Other tech giants are issuing requests for up to 4 gigawatts of new nuclear capacity, with deployments planned for the early 2030s. These moves show a clear commitment to sustainable energy that can keep pace with their ambitions.

Tech companies are betting on nuclear to power their data-driven future, and the results could reshape the energy landscape.

– Technology sector analyst

In my view, this is where things get really exciting. These companies aren’t just building data centers—they’re reimagining how we power them. By investing in nuclear, they’re not only securing their own energy needs but also pushing the industry toward a cleaner, more reliable grid.


Challenges and Costs of Scaling Nuclear

Of course, it’s not all smooth sailing. Building new nuclear capacity isn’t cheap. Current construction costs range from $6,417 to $12,681 per kilowatt, dwarfing the $1,290 per kilowatt for gas-fired plants. That’s a tough pill to swallow, even for deep-pocketed tech giants. So, what’s the fix? Industry experts point to a few key strategies:

  1. Advanced project management: Streamlined processes to cut timelines and costs.
  2. Design innovations: Tools like digital twinning to optimize reactor builds.
  3. Modular construction: Prefabricated components to make assembly faster and cheaper.

These solutions aren’t just theoretical—they’re already in play. By adopting modular designs and leveraging existing infrastructure, the nuclear industry is working to make new projects more cost-competitive. But will it be enough to scale up in time for the 2035 data center boom?

The Bigger Picture: A Cleaner Grid

Beyond data centers, nuclear power’s revival could have ripple effects across the energy sector. With the U.S. Department of Energy estimating that existing nuclear and coal sites could host up to 269 gigawatts of new nuclear capacity, the potential is massive. This isn’t just about keeping servers online—it’s about building a grid that’s resilient and sustainable for decades to come.

Energy SourceConstruction Cost ($/kW)Operational Life
Nuclear6,417–12,68140–60 years
Gas1,29020–30 years
Solar1,000–2,00025–35 years

The table above paints a clear picture: nuclear’s upfront costs are high, but its longevity is unmatched. For data centers that need consistent power for decades, this makes nuclear a compelling choice. Plus, with innovations like SMRs, the cost gap is narrowing.

What’s Next for Nuclear and Data Centers?

As we look toward 2035, the question isn’t just whether nuclear can meet 10% of data center demand—it’s whether it can do more. The tech industry’s push for clean energy is relentless, and nuclear’s reliability makes it a strong contender. But challenges like cost, public perception, and regulatory hurdles remain. In my experience, industries that innovate under pressure often come out stronger, and nuclear seems poised to do just that.

Will nuclear power become the backbone of the digital age? Only time will tell, but the bets being placed by tech giants suggest it’s more than a passing trend. For now, the fusion of nuclear energy and data centers is a story worth watching—one that could redefine how we power our connected world.

This article scratches the surface of a complex topic, but it’s clear that nuclear power’s role in the energy mix is growing. From small modular reactors to repurposed coal plants, the solutions are as diverse as the challenges. If you’re as intrigued as I am by this convergence of technology and energy, keep an eye on how this space evolves—it’s bound to be a wild ride.

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