Nuclear energy and AI
January 28, 2025
In the digital age, artificial intelligence (AI) has emerged as one of the most transformative technologies, driving innovations in sectors such as healthcare, education, industry, and entertainment. However, this progress comes at a significant cost: increasing energy consumption. Unlike traditional internet searches, AI-powered queries, which use complex natural language processing and deep learning models, demand considerably more energy. This increase in resource use raises important questions about technological sustainability in a world seeking to reduce its carbon footprint. In this context, understanding the energy impact of AI and seeking solutions that balance its advancement with sustainability is crucial to ensure responsible and ecologically viable development.
The energy consumption of artificial intelligence (AI) queries, especially those involving advanced models such as natural language processing (e.g. ChatGPT), is considerably higher than that of a conventional Google search. This increase in energy consumption is due to fundamental differences in the complexity of search processes.
The energy consumption required for a query using artificial intelligence is 10 times higher than a normal Google search.
Global energy consumption and data center consumption are projected to experience significant growth through 2030. Currently, global electricity demand is approximately 28,000 TWh in 2024, with projections indicating an increase to 33,000 TWh by 2030, driven by electrification across various sectors, economic growth, population increase, and expansion in technology.
In this context, data centres are playing an increasingly important role. In 2022, their consumption accounted for between 1% and 2% of the world total (around 300-400 TWh), but this is expected to grow by 160% by 2030, reaching around 1,000 TWh . This increase is mainly linked to the rise of AI, whose processes are highly energy-intensive.
Global energy consumption TW/h
This electricity generated comes from a combination of traditional and renewable sources. The main sources include coal , historically dominant but in decline due to its environmental impact; natural gas , a cleaner alternative that continues to grow; and renewable energies , such as hydroelectric, solar and wind, which are gaining prominence thanks to their sustainability and technological advances. This panorama poses a key challenge: ensuring the generation of an energy surplus in a sustainable, completely clean and carbon-free way.
This brings us to the next question : Where can the additional energy needed to meet the growing demands of artificial intelligence be obtained? The answer seems to be none other than nuclear energy .
Nuclear power
Nuclear energy is one of the most powerful and controversial energy sources in the modern world. It is generated through processes that release enormous amounts of energy contained in the nuclei of atoms, such as nuclear fission, widely used in nuclear power plants, and nuclear fusion, still in development as a viable source. This technology has revolutionised electricity production by offering an efficient, low-carbon alternative, contributing significantly to the fight against climate change. However, it also poses challenges related to radioactive waste management, operational safety and the geopolitical implications of its use. As humanity seeks sustainable solutions to meet its growing energy demand, nuclear energy is at the centre of the debate on how to balance technological development, environmental protection and global security.
How is nuclear energy generated?
Nuclear energy is produced by two main processes, with nuclear fission being the most common and widely used today. This process involves the splitting of a heavy atomic nucleus, such as uranium-235 or plutonium-239, into smaller nuclei. This occurs when the nucleus is bombarded by a neutron, causing it to become unstable and break up. As a result, a huge amount of energy is released in the form of heat, along with the emission of additional neutrons.
Composition of the atom
Protons: with positive electrical charge (+)
Neutrons: with both charges.
Orbital electrons with a negative electrical charge (-), the number of which varies depending on the chemical element.
These released neutrons can collide with other nearby nuclei, starting a chain reaction that amplifies the fission process. This phenomenon is the basis of the operation of nuclear reactors. The thermal energy generated in the reaction is used to heat water inside the reactor, converting it into high-pressure steam. This steam, in turn, is directed towards turbines connected to electric generators, where its rotational movement produces electricity.
Nuclear fission is notable for its energy efficiency, as a small amount of nuclear fuel can generate a huge amount of energy. For this reason, nuclear power plants are capable of producing large volumes of electricity with a significantly low carbon footprint, helping to mitigate climate change.
However, the process also comes with challenges, such as managing radioactive waste, which requires safe storage for thousands of years. In addition, the risks associated with nuclear accidents, although rare, raise significant safety concerns. Despite these difficulties, nuclear fission remains an essential technology to meet the world's growing energy demand in a sustainable manner. This method continues to evolve with the development of safer and more efficient reactors capable of fully exploiting the potential of nuclear fuel.
Classification of energies according to their safety and sustainability
In terms of sustainability, nuclear energy is considered one of the cleanest and most efficient sources for generating electricity. Unlike fossil fuels, it does not emit carbon dioxide (CO₂) or other greenhouse gases during operation, making it an ally in the fight against climate change. In addition, nuclear power plants produce energy continuously, without depending on weather conditions, as is the case with renewable sources.
Source: Markandya & Wilkinson (2007), UNSCEAR (2008; & 2018)
In terms of safety, the nuclear industry has made significant progress, implementing cutting-edge technologies and strict protocols to minimise risks. Modern reactors, such as the small-footprint modular design (SMR) reactors (which we will discuss later), offer greater safety and operational flexibility. However, managing radioactive waste and preventing accidents is crucial to ensuring sustainability. With innovation and proper regulation, nuclear energy can play a key role in the transition to a cleaner energy future.
Source: Markandya & Wilkinson (2007); Sovacool et al. (2016); UNSCEAR (2008; & 2018)
Nuclear power generation
According to data from the International Atomic Energy Agency (IAEA), nuclear power generation capacity has experienced a general trend of moderate growth over the last decade . This increase is due, in part, to the expansion of nuclear programs in countries such as China, which has doubled its installed capacity in this period, reaching 53 gigawatts from 55 reactors. However, it is important to note that, although installed capacity has increased, the share of nuclear energy in the global energy mix has remained relatively stable, due to the parallel growth of other energy sources.
Source: Ember (2024); Energy Institute - Statistical Review of World Energy (2024)
Other countries such as Russia, India and the United Arab Emirates have also boosted their nuclear programmes. Russia, for example, has not only increased its domestic capacity but has become a global leader in the export of nuclear technology, building reactors in countries across Asia, Africa and Eastern Europe.
However, despite the growth in installed capacity, nuclear energy has faced challenges in increasing its share of the global energy mix. This is due to several factors, such as the rapid expansion of renewable energy (solar and wind), which have gained popularity due to their lower installation and operation costs. Likewise, fossil fuels, such as natural gas, continue to be a dominant option in many regions due to their accessibility and competitive prices.
Another reason behind this relative stability is the closure of nuclear power plants in countries such as Germany and Japan. In Germany, the nuclear phase-out policy ("Energiewende") has led to the gradual closure of reactors since the Fukushima disaster in 2011. Japan, for its part, still operates a limited number of reactors.
Although nuclear capacity has grown in absolute terms, its share in the global energy mix remains stable due to the simultaneous growth of other energy sources. However, this could be about to change due to the high energy demand from companies related to artificial intelligence.
The growing investment in nuclear energy by technology companies such as Microsoft, Alphabet (Google) and Amazon reflects their strategy to ensure a reliable, sustainable and environmentally friendly electricity supply. These companies, which operate 24/7 global services such as cloud computing, artificial intelligence and data centres, need a source of energy that is not only constant, but also meets their climate sustainability commitments.
Nuclear reactors around the world
Currently, the 422 reactors in operation in a total of 33 countries generate around 10% of the world's electricity , according to the latest data from the International Atomic Energy Agency (IAEA).
The United States is the country in the world with the largest number of nuclear reactors for electricity production.
In the European Union, 13 of the 27 member states have nuclear power plants.
There are a total of 103 reactors in operation, which produce around 26% of the total electricity consumed in the EU each year.
With 56 operating reactors, France is the country in the European Union with the most nuclear units.
In France, 70% of its electricity comes from nuclear sources, the highest percentage in the world.
Energy production costs
The cost of energy production varies considerably between different energy sources, depending on factors such as the technology used, infrastructure costs, available natural resources, and local policies. Below is a comparative analysis of the estimated costs per megawatt-hour (MWh) for various energy sources:
1. Nuclear Energy
Average cost : $30-40/MWh.
Key factors : High initial construction and licensing costs are offset by low operating costs and long plant lifetimes (40-60 years). However, financing and long construction times are major challenges.
2. Natural Gas
Average cost : $40-90/MWh.
Key factors : It is a flexible and economical source in many places, but gas prices vary by region and market fluctuations. The increasing pressure to reduce CO₂ emissions could increase its costs in the future due to taxes or regulations.
3. Coal
Average cost : $30-70/MWh.
Key factors : Historically, coal has been one of the cheapest sources, but environmental regulations and associated emissions costs are driving up its price. In addition, its environmental impact makes it less attractive.
4. Hydroelectric energy
Average cost : $30-60/MWh.
Key factors : It is one of the most economical and reliable sources, but its implementation depends on the availability of water resources. Initial construction costs can be high, but operations are cheap and the plants have a long life span.
5. Solar Energy
Average cost : $20-50/MWh (large installations).
Key factors : Solar energy costs have fallen dramatically over the past decade thanks to technological advances and economies of scale. However, its intermittency requires storage or backup systems that can increase costs.
6. Wind Energy
Average cost : $20-50/MWh (onshore), $50-100/MWh (offshore).
Key factors : Onshore wind energy is one of the most competitive sources, while offshore wind has higher costs due to its technical complexity. Both depend on the availability and consistency of the wind.
7. Biomass
Average cost : $40-120/MWh.
Key factors : Its viability depends on the availability and cost of organic materials. Although it has associated emissions, these are lower than those of fossil fuels.
7. Oil
Average cost : $150 - 300 /MWh.
Key factors : Its cost depends on several factors, such as the type of crude oil, the extraction and refining processes, the available infrastructure, and global market fluctuations. In general, energy from oil is more commonly used for transportation than for electricity generation, but in certain regions it still contributes to electricity production. It is one of the most expensive options for producing electricity.
Renewable energy sources, such as solar and wind, are increasingly competitive with conventional sources due to falling technological costs and climate policies. However, nuclear power and gas plants remain essential to ensure stability and energy supply in complex energy systems. The choice of the optimal source will depend on the balance between costs, sustainability and reliability in each region.
Advantages and disadvantages of nuclear energy
Advantages :
Low carbon emissions : Nuclear power generation produces almost zero CO₂ emissions during operation, making it an effective option to combat climate change and reduce the global carbon footprint.
High energy density : A small amount of nuclear fuel produces enormous amounts of energy, much more than fossil fuels, making it efficient and capable of meeting high energy demands.
Stable and reliable : Unlike intermittent renewables like solar or wind, nuclear plants generate constant power around the clock, serving as a base source on electrical grids.
Disadvantages :
Long-lived radioactive waste : Nuclear waste remains hazardous for thousands of years and requires secure and expensive storage systems that pose ethical and technical challenges.
Risk of accidents : Although modern reactors are safer, incidents such as Chernobyl and Fukushima have shown the potentially catastrophic consequences of human error or natural disasters.
High initial costs and construction time : Building a nuclear plant requires multi-million dollar investments and long development times, limiting its adoption compared to faster and cheaper alternatives.
Nuclear proliferation : Nuclear technology can be diverted to make weapons, posing a significant risk to global security and geopolitical stability.
Ultimately, nuclear energy is emerging as a key solution to address the challenge of increasing energy demand driven by the rise of artificial intelligence (AI), thanks to its ability to generate large volumes of electricity in a consistent, carbon-free manner. As AI models advance and require greater resources, renewable sources such as solar and wind may not be sufficient due to their intermittency. On the other hand, nuclear energy offers a reliable, energy-dense alternative, capable of operating without interruptions. In this context, it seems inevitable that nuclear energy will play a central role in ensuring the energy sustainability of the AI-led digital future.
SMR Reactors
The Small, Modular and Safe Nuclear Energy Revolution
Small modular nuclear reactors, known as SMRs , represent an evolution in nuclear technology designed to address the economic, logistical and safety challenges associated with traditional large-scale nuclear reactors. These smaller and more versatile units are gaining attention as a promising solution for clean and reliable energy generation in different contexts.
Main Features of SMRs
Reduced Size :
SMRs have a generating capacity typically less than 300 megawatts electrical (MWe), compared with 1,000-1,600 MWe for traditional reactors.
Its compact design makes it easy to transport and assemble in factories, reducing construction costs and times.
Modularity :
They can be mass produced and transported in modules for assembly at the installation site. This allows their capacity to be scaled by adding more modules according to energy needs.
Increased Security :
They incorporate passive safety systems that do not require human intervention or external power supply to cool the reactor in case of emergency.
Modern designs minimize the risks of nuclear accidents and radiation leakage.
Versatility :
They can be deployed in remote areas, islands, or regions without robust energy infrastructure.
Some models are designed for applications beyond electricity generation, such as water desalination, industrial heating and hydrogen production.
Advantages of SMRs
Reduced Initial Costs : Compared to large reactors, SMRs require a lower initial investment, making them attractive for countries or companies with lower financial capacity.
Flexibility : Its modular capacity allows electricity generation to be adjusted to local demand.
Shorter Construction Time : Mass production and standardized design shorten lead times from decades to just a few years.
Lower Environmental Impact : They generate less radioactive waste and can be installed in smaller sites with less disruption to the environment.
Challenges of SMRs
Economies of Scale : Although the initial cost is lower, the cost per MWh could be higher until the technology is mass produced.
Regulation : Each country must adapt its regulatory frameworks for this new technology, which may delay its implementation.
Competition with Renewables : As solar and wind energy costs continue to decline, SMRs must demonstrate their competitive advantage.
SMRs offer a unique opportunity to diversify the global energy mix and provide clean, reliable and safe energy in a world seeking to reduce carbon emissions. Although they still face regulatory and cost barriers, their innovative design and versatility position them as a key player in the future of nuclear energy.
Companies in the sector
The nuclear energy sector is driven by specialist companies that lead every stage of the nuclear value chain: from uranium mining and processing, through reactor construction and fuel production, to nuclear waste management and the development of advanced technologies to improve efficiency and safety. Many of these companies, listed on major stock exchanges, are not only key players in the global energy transition, but also represent strategic opportunities for investors. As interest in clean and sustainable energy solutions increases, these companies play a critical role in the expansion and modernisation of nuclear energy in a context of innovation and environmental responsibility.
Below are some of the major publicly traded companies in the nuclear energy sector:
Uranium miners
Cameco Corporation (CCO): Although primarily known for uranium mining , Cameco is also involved in nuclear fuel services and is positioned to supply essential materials for SMR and other emerging nuclear technologies.
Uranium Energy Corp (UEC) : Based in the United States, Uranium Energy Corp. focuses on low-cost, environmentally friendly in-situ recovery (ISR) mining methods, which reduce environmental impact compared to traditional mining. UEC is actively expanding its uranium production to meet growing demand, making it an attractive option for investors looking for domestic uranium supply.
NexGen Energy (NXE) : NexGen Energy is currently advancing one of the largest uranium projects in the development pipeline , the high-purity Rook I project in Canada. With plans for innovative extraction and processing techniques, NexGen aims to set new standards for efficiency and environmental responsibility in uranium production.
Nuclear industry
BWX Technologies, Inc. (BWXT) ***: Specializing in nuclear components and services , BWX Technologies is at the forefront of developing advanced nuclear reactors, including SMRs, for commercial and military applications.
NuScale Power Corporation (SMR): A pioneer in SMR design , NuScale has earned design approval from the U.S. Nuclear Regulatory Commission. Its modular reactors are designed to provide safe, efficient, and affordable nuclear power.
Oklo Inc. (OKLO) : Focused on ultra-compact SMR microreactors, Oklo develops sustainable nuclear solutions using recycled fuel, offering energy options for remote locations and industrial applications. Its flagship product, the Aurora reactor, is designed to generate 15 to 50 megawatts of electricity (MWe) and operate for up to 10 years without needing refueling. Oklo plans to build its first Aurora reactor at Idaho National Laboratory in 2027. (still in the pipeline)
NANO Nuclear Energy Inc. (NNE): NANO Nuclear Energy Inc. (NNE) is a startup company specializing in the development of small modular nuclear reactors (SMRs) and advanced microreactors. Based in the United States, its focus is on delivering clean, safe, and portable nuclear solutions designed for commercial, industrial, and remote applications. (in the pipeline, the company has not yet begun commercial operations)
Rolls-Royce Holdings plc (RR.): Through its nuclear power division, Rolls-Royce is developing SMRs designed to complement the power grid and offer modular energy solutions in a variety of markets.
Nuclear services
Constellation Energy Corporation (CEG): One of the leading clean energy generation companies in the United States, specializing in nuclear, wind, solar and natural gas. Headquartered in Baltimore, Maryland, it is the largest producer of carbon-free electricity in the country, thanks to its extensive network of nuclear reactors . Constellation also offers energy solutions to residential, commercial and industrial customers, focusing on energy efficiency and sustainability. (Spin-Off of Exelon Corporation (NASDAQ: EXC))
Centrus Energy Corp. (LEU): Specializes in the provision of uranium enrichment services and products for the nuclear energy sector. The company positions itself as a key player in the nuclear fuel supply chain, providing enriched uranium that powers nuclear reactors around the world.
Mirion Technologies, Inc. (MIR): A leading radiation detection and measurement technology company ( radiological risk management ), based in the United States. It offers advanced monitoring and safety solutions in sectors such as nuclear energy, medicine, defense and industry. Its products include dosimeters, detectors and environmental monitoring systems to ensure safety and accuracy in radiation environments.
NextEra Energy, Inc. (NYSE: NEE): One of the world's largest renewable energy companies, headquartered in Juno Beach, Florida, NextEra Energy is a leader in generating electricity from clean sources such as solar and wind energy, and operates nuclear and natural gas power plants.
EDF (Électricité de France) (EPA: EDF): It is the leading electricity producer in Europe . Headquartered in Paris, EDF operates a broad power generation portfolio, led by its network of nuclear reactors, which produce the majority of carbon-free electricity in France. In addition, the company invests in renewables such as wind, solar and hydro, while developing advanced technologies for the energy transition. (100% owned by the French state).
These actors play a key role in the development and expansion of nuclear energy, contributing from different perspectives and levels of involvement. From mining companies that ensure the supply of uranium, to technological industries that design advanced reactors, each of them contributes essential pieces to a common goal: to guarantee a clean, efficient and sustainable energy supply. Although their origins and areas of specialization are diverse, they share the same goal of responding to growing energy demands, especially those driven by technology.
Nuclear power is emerging as a key solution to meet growing energy demands driven by the expansion of artificial intelligence (AI). Its ability to generate large amounts of electricity on a consistent basis and without direct carbon emissions makes it a strategic alternative to traditional energy sources that contribute to climate change. As technology increases the demand for electricity, especially in sectors such as data centers and advanced processing, nuclear power can provide the reliable and sustainable supply that these applications require. However, to maximize its potential, it will be critical to address challenges such as costs, waste management, and social acceptance.
In this context, nuclear energy not only has the potential to support technological development, but also to play a crucial role in the transition towards a cleaner and more efficient energy future.