EY Says Nuclear and AI Will Accelerate the Energy Transition
- Muhammad Ahmad
- Dec 6, 2024
- 2 min read
COP29 sees nuclear energy taking center stage as a key to sustainable AI operations and net-zero goals
Advanced reactors and AI’s energy demand are driving nuclear’s resurgence
COP29 highlights nuclear energy as a solution for clean, reliable power.
AI’s growing energy needs to position nuclear as a vital part of the energy mix.
Technological innovations and creative funding make nuclear more feasible.
As the COP29 has concluded in Baku, Azerbaijan, 14 global financial institutions have pledged support for last year’s declaration to triple nuclear energy capacity. This marks a pivotal shift in global energy strategies, with nuclear energy being re-embraced after years of safety and environmental concerns. Governments and tech companies increasingly recognise nuclear power as a vital clean energy source.
This renewed focus comes at a critical time. Technology giants need large-scale clean energy to power AI operations, while governments aim to balance carbon reduction goals with energy reliability. Advances in nuclear technology, such as small modular reactors (SMRs), have made adoption more practical and scalable.
Technical Focus
The global nuclear energy market is poised for significant growth, driven by SMRs and fusion technology advancements. SMRs offer scalable energy solutions with lower initial costs, while fusion technology, in its early stages, promises nearly limitless clean power. The U.S. allocated over $49 million for fusion research in 2024, reflecting increasing global investments in innovative nuclear designs.
Tech companies like Google and Microsoft are leading the way in adopting nuclear energy. Google plans to source 500 MW from Kairos Power’s SMRs to meet AI energy needs. Through a partnership with Constellation Energy, Microsoft is reviving the Three Mile Island nuclear plant for 835 MW of clean energy. According to projections, AI-driven data centres in the U.S. could consume up to 9% of electricity by 2030, underlining the urgent need for reliable and sustainable power sources.
Countries are also stepping up their nuclear game. India’s government has announced a partnership with private firms to develop Bharat SMRs, aiming to bridge the gap between growing energy demands and sustainable development.
However, the high cost of nuclear power remains a challenge. For instance, India’s pressurized heavy-water reactors will cost INR142 million per MW by 2027. Innovative funding models, such as collaborations between governments and international lenders or crowdfunding, are being explored to overcome this hurdle.
As nuclear technology advances and funding mechanisms evolve, the role of nuclear energy in achieving net-zero goals is becoming increasingly apparent. A coordinated global effort is needed to overcome challenges, reduce costs, and make nuclear a cornerstone of the clean energy transition.