Nuclear Intelligence II
We have picked four stocks — Amazon AMZN, Alphabet GOOGL, Microsoft MSFT and Meta Platforms META — that are at the forefront of this transition to nuclear energy in 2025.
Nuclear Energy is Preferred to Power AI: 4 Tech Giants to Gain in 2025
Zacks Equity Research
Fri, December 20, 2024 at 11:32 PM GMT+7 5 min read
Artificial intelligence (AI) is revolutionizing industries and driving technological advancements at an unprecedented pace. However, its explosive growth comes with a huge requirement for energy. Data centers, which are the backbone of AI innovation, consume massive amounts of electricity to process complex computations and also to keep the high-performance systems cool.
The surging demand for these energy-intensive data centers is pushing traditional power solutions to their limits. A recent Gartner report has highlighted that power shortages will operationally constrain 40% of existing AI and GenAI data centers by 2027, threatening their growth and disrupting energy availability.
Amid this energy crisis, nuclear energy has turned out to be a game-changer in the quest for a sustainable and reliable source of power. Unlike other conventional sources, nuclear energy provides round-the-clock electricity with minimal carbon emissions, making it ideal for AI’s growing demands.
So, why are tech giants turning to nuclear power now? The answer lies in the fact that advanced nuclear solutions offer faster deployment, lower costs, and a greener future. By tapping into nuclear power, companies are not only fueling the evolution of AI but also paving the way for a cleaner energy grid.
Let us dive into this alliance between AI and nuclear power and explore the tech leaders that are poised to gain from this paradigm shift in 2025.
Our Picks
We have picked four stocks — Amazon AMZN, Alphabet GOOGL, Microsoft MSFT and Meta Platforms META — that are at the forefront of this transition to nuclear energy in 2025.
Amazon - This Zacks Rank #2 (Buy) stock uses machine learning, natural language processing and data analytics to enhance its services across e-commerce, cloud computing and logistics. Through its AWS (Amazon Web Services) division, it offers advanced AI solutions to businesses and individuals globally. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Amazon has been proactive in addressing the increasing energy demands of its AI infrastructure. In 2025, Amazon is set to support nuclear energy development by entering into agreements for Small Modular Reactors (SMRs), which promise faster build times and can be deployed closer to the grid.
In its collaboration with Energy Northwest in Washington, Amazon will aid in developing four advanced SMRs to generate up to 960 MW of clean energy, sufficient to power over 770,000 homes. Amazon is also investing in X-energy, a leader in next-generation SMR reactors, whose technology will be used in this project.
https://finance.yahoo.com/news/nuclear-energy-preferred-power-ai-163200020.html
Why the Next Big Artificial Intelligence (AI) Play Could be in the Nuclear Power Industry
Industry insiders are saying that the next big artificial intelligence (AI) opportunity could be Nuclear Power. As AI continues to drive unprecedented advancements across industries, the demand for robust, energy-efficient infrastructure to support AI computations has skyrocketed.
November 20, 2024 09:00 ET
Data centres, the backbone of the AI revolution, consume immense amounts of energy to power and cool their servers. To sustain this growth sustainably, companies are increasingly turning to nuclear power—an energy source capable of providing gigawatt-scale, low-cost, and low-emission electricity continuously.
Leading innovators are at the forefront of this movement, showcasing how nuclear energy is pivotal for meeting the massive energy demands of AI-driven technologies while aligning with global sustainability goals. Active companies in news today include: KULR Technology Group, Inc. (NYSE: KULR), NuScale Power Co. (NYSE: SMR), NVIDIA Corporation (NASDAQ: NVDA), NNE NANO Nuclear Energy Inc.(NASDAQ: NNE), Oslo Inc. (NYSE: OKLO).
The Energy Demands of AI - AI workloads, particularly training large-scale models, require exponentially more computational power than traditional IT tasks. NVIDIA, a global leader in AI hardware and software, has been a key player in advancing GPU technology that powers these complex computations. However, running the data centers that host these GPUs comes with a significant environmental challenge: energy consumption. By 2025, data centers are expected to account for up to 3% of global electricity demand, with a corresponding rise in carbon emissions unless mitigated. Companies like NVIDIA are exploring nuclear power as a sustainable, scalable solution to address these challenges.
Why Nuclear Power? - Nuclear power offers a unique combination of benefits that make it ideal for supporting data center growth:
Continuous Energy Supply: Unlike solar or wind, nuclear energy provides consistent electricity 24/7, ensuring the uninterrupted operation of critical data center workloads.
Low Emissions: Nuclear reactors emit virtually no greenhouse gases, making them an environmentally friendly alternative to fossil fuels.
High Energy Density: A small amount of nuclear fuel can produce an immense amount of energy, supporting the gigawatt-scale demands of large data centers.
The Future of AI and Nuclear Collaboration - The partnership between AI and nuclear power is a natural evolution in the quest for sustainable technological progress. As companies… adopt, the future of AI looks increasingly green and sustainable. Nuclear power not only provides the energy scale and reliability required by AI-driven data centers but also helps address the global need for climate action. With this synergy, the growth of AI can be achieved without compromising the health of our planet.
KULR Technology Group, Inc. (NYSE American: KULR) Designs for Small Modular Nuclear Fusion Reactors - KULR Technology Group, (the "Company" or "KULR"), a provider of advanced thermal management solutions, today announced the development of its proprietary carbon fiber designed custom cathodes in small modular reactors (SMRs) for a prominent nuclear fusion company. As global demand for sustainable energy grows in response to an increased focus on nuclear from hyperscalers aiming to keep up with the rising energy demands of data centers related to the AI boom, KULR’s innovations are contributing to the increasing buildout of abundant, clean energy sources.
Nuclear fusion, often regarded as the "holy grail" of clean energy, offers the promise of unlimited energy production free from fossil fuels, with a low environmental impact compared to conventional nuclear fission. By working with leading nuclear fusion companies, KULR aims to advance the possibilities of fusion technology to meet the energy demands of tomorrow while addressing climate change.
According to Goldman Sachs, data center energy demand currently represents 1-2% of global demand and is set to double by 2030 largely driven by demand for AI powered applications.
The custom cathodes designed by KULR will be implemented in a laser-based nuclear fusion system for small modular reactors, an emerging technology with the potential to deliver affordable, reliable nuclear fusion energy. Laser-based fusion is a rapidly advancing approach that utilizes high-powered lasers to initiate fusion reactions, offering a promising alternative to traditional fusion methods.
The Company’s proprietary carbon fiber cathode, designed initially for aerospace and defense applications, has proven capabilities in harsh environments. This innovative material was developed alongside related technologies which are utilized in aerospace and missile systems, including the Mars Rover. The same high-performance standards that enable success in space missions are now being applied to energy platforms on Earth.
“KULR’s expertise in space-proven engineering uniquely positions us to support mission-critical energy solutions,” KULR CEO Michael Mo added. “By applying our advanced materials to nuclear fusion, we are taking meaningful steps toward addressing the United States’ critical energy needs and advancing its broader goals of energy security and sustainability".
This new application of KULR’s technology in laser-based nuclear fusion for small modular reactors reinforces the company’s leadership in the energy management space, as well as its commitment to advancing the global energy transition. With this engagement, KULR continues to demonstrate how innovative engineering can play a pivotal role in shaping a cleaner, more sustainable future. CONTINUED… Read this entire press release and more news for KULR at: https://www.financialnewsmedia.com/news-kulr/
In other developments in the markets of note:
NuScale Power Co. (NYSE: SMR) stands at the forefront of SMR technology development recently said as the first company to receive design certification from the U.S. Nuclear Regulatory Commission (NRC), NuScale is well-positioned to capitalize on the growing demand for clean energy solutions. NuScale’s SMR technology is designed to produce 77 megawatts of power per module, with the capability to link up to 12 reactors into a single unit using its VOYGR production plant technology. This modular approach allows for multipurpose use, including power generation, desalinization, and hydrogen production.
Artificial Intelligence (AI) is revolutionizing industries, but its energy demands are skyrocketing. AI data centers, the backbone of this technological revolution, require immense power to operate efficiently. According to the International Energy Agency, data centers’ electricity consumption could exceed 1,000 terawatt hours (TWh) by 2026, more than doubling from 2022 levels. This surge places significant strain on electric grids globally, necessitating innovative energy solutions.
NANO Nuclear Energy Inc. (NASDAQ: NNE), an emerging vertically integrated microreactor and advanced nuclear technology company developing proprietary, portable and clean energy solutions, recently announced that it has signed a Memorandum of Understanding (MOU) with Everstar Inc. (Everstar).
“We are delighted to enter into this collaboration with NANO Nuclear,” said Kevin Kong, Founder of Everstar. “Artificial intelligence is a powerful lever to reshape how we design, analyze, validate, and regulate complex and safety-critical technologies like nuclear power. By leveraging Everstar’ s cutting-edge AI capabilities and giga data bank, companies like NANO Nuclear can concentrate on their core mission: pioneering advancements for the future of humanity. We are honored to support these potentially transformative initiatives and are excited to help build a world of clean energy abundance with forward-thinking companies like NANO Nuclear.”
Oklo Inc. (NYSE: OKLO) recently announced it is looking to meet the growing power demand for AI data centers. The Sam Altman-backed company making progress in starting to produce power. Oklo CEO Jacob DeWitte saying the company is “on a good trajectory” for its first commercial advanced fission plant. DeWitte adding that “it's a really exciting time to be in this business. Just crazy amounts of demand coming forward.”
As part of that demand, Oklo (OKLO) recently announced partnerships to provide power for two major data center providers. Oklo, however, is not revealing the new customers, DeWitte explaining “they don't necessarily want to get out there and tip their hand.” In the meantime, the nuclear tech company is working to fill in the near-term power deployment opportunities.
The Motley Fool recently said that, right now, no company in AI seems to be more influential than Nvidia (NASDAQ: NVDA). It dominates the market for data center GPUs, the chips that power applications like ChatGPT, and its revenue has skyrocketed since OpenAI launched its large language model. This biggest question in artificial intelligence is rapidly changing from how to use it to how to power it.
AI data centers demand massive amounts of power to run the compute necessary to make applications like ChatGPT work. In fact, powering its computers is the biggest cost for the AI start-up and industry bellwether OpenAI, showing how crucial it is for AI companies to find affordable energy. In recent weeks, there seems to be something of a consensus forming on the question of affordable energy for AI: It's going nuclear. Investors are rapidly lining up behind nuclear power stocks as big tech companies like Microsoft, Amazon, and Alphabet all forged deals to source nuclear power in recent weeks.
SOURCE: FN Media Group
NB: The views expressed above are not necessarily those of The Asean Chair
Amid surging energy demands from AI and data centers, Big Tech turns to nuclear power
By Mythili Devarakonda
November 29, 2024
Sprawling data centres, the backbone of modern digital infrastructure, consume vast amounts of electricity to process, store, and manage the data generated by billions of users daily, driving companies to explore nuclear energy as a solution.
The holy trinity of the tech world, Google, Amazon and Microsoft, have made their moves on incorporating nuclear energy into their business agendas. Amid rising demand for clean energy to power data centres and drive AI innovation, new long-term partnerships with nuclear energy startups have been unveiled.
Last month saw a significant investment from Amazon in nuclear power startup X-energy, leading a Series C-1 funding round of approximately $500 million. Based in Rockville, Maryland, X-energy specializes in developing advanced small modular nuclear reactors (SMRs) for clean energy generation.
Announced on Oct.16, Citadel Founder and CEO Ken Griffin, affiliates of Ares Management Corporation (“Ares”), NGP, and the University of Michigan joined Amazon’s Climate Pledge Fund in backing X-energy in the financing round.
Amazon and X-energy’s collaboration is set to bring more than 5 gigawatts of new power projects online across the United States by 2039, according to X-energy’s statement. This represents the largest commercial deployment target of SMRs to date.
SMRs are being chosen over traditional installations, which are massive and can take years to build, due to their ability to lower cost and speed up the construction of nuclear power plants.
Amazon’s investment solidifies X-energy’s leading role in commercializing SMR technology to revolutionize the nuclear industry, the company said in a statement.
This is just one among the three nuclear energy projects Amazon is partaking in. The retail giant pledged a sustainability goal of going carbon-free by 2040 which led to the search for alternative energy sources. With a proven decades-long record of being a reliable energy source, nuclear power has become the go-to for establishing safe carbon-free energy for communities around the world, Amazon shared in a blog.
Earlier this year, in an effort to reach 100% renewable energy by 2025—part of the multinational’s net-zero carbon goal, Amazon located its data center facility to subsidiary Amazon Web Services (AWS) next to Talen Energy’s nuclear facility in Pennsylvania. The company stated that this will directly power their data centers with carbon-free energy, and helps preserve the existing reactor.
Without straying from the sustainability path, Amazon has made an agreement with Washington’s Energy Northwest, in addition to their investment in X-energy.
A public power agency leading in nuclear technologies, Energy Northwest will be developing four advanced SMRs which are expected to generate enough energy to power more than 770,000 U.S. homes. The SMRs will be constructed, owned and operated by Energy Northwest, enabled by Amazon due to the deal. The project is designed to meet the forecasted energy needs of the Pacific Northwest beginning in the early 2030s.
Amazon signed another deal with Virginia’s utility company Dominion Energy, agreeing to “explore the development of at least 300 megawatts” worth of SMRs near the North Anna Nuclear Generating Station, located between Washington, D.C., and Richmond, Virginia.
Mid-October saw another tech behemoth pursue nuclear power: Google signed the “world’s first corporate agreement” with nuclear energy startup Kairos Power to build seven small reactors to supply electricity to its data centres.
The agreement promises to produce up to 500 megawatts of carbon-free power to U.S. electricity grids, and help communities benefit from clean and affordable nuclear power. The initial phase of this project is intended to come online by 2030. In the case of Kairos, the technology is taken a step further by cooling the reactor not with water but with molten salts of lithium fluoride and beryllium fluoride.
Tech powerhouse Microsoft announced on Sept. 20 a deal with Constellation Energy to revive the nuclear power plant, Three Mile Island. Located in Middletown, Pennsylvania, the power plant was the site of one of the worst commercial nuclear accidents in U.S. history. With Microsoft’s new power purchase agreement which will span 20 years, its cloud computing and AI data centers will be fueled by the clean and carbon-free electricity produced by the nuclear plant.
For companies like Microsoft, Amazon, and Google, the renewed interest in nuclear energy stems from the immense energy demands of AI and data centers, which are among the largest consumers of power.
Their sprawling data centers, the backbone of modern digital infrastructure, consume immense amounts of electricity to process, store, and manage the vast amounts of data generated by billions of users daily. The rising demand for cloud computing, AI-driven applications, and 24/7 online services has significantly increased their energy needs.
“AI is really power hungry. A single query with ChatGPT uses about ten times more power than a Google search. With over 100 million users, there just isn’t enough power, whether in the U.S. or globally, to sustain this kind of growth,” AI regulation expert Sanjay Puri told The American Bazaar.
Balancing this rising demand with their ambitious climate and sustainability targets has driven these tech giants to explore alternative energy sources. Nuclear energy, alongside wind and solar, could be essential for delivering the large-scale renewable power they require.
“To keep up, we’re seeing investment not only in AI innovation but also in infrastructure—like nuclear energy and advanced cooling systems for data centres,” Puri, founder of the nonprofit Regulating AI, added.
https://americanbazaaronline.com/2024/11/29/big-tech-bets-on-nuclear-future-of-clean-energy-2822/
Bitcoin Miners: The New Power Backbone of AI Data Centers
Cryptocurrency miners are pivoting to AI data center operations. While this transition offers numerous opportunities, it also presents some challenges, writes Rosanne Kincaid-Smith, group COO at Northern Data.
Following the Bitcoin reward halving earlier this year, which reduced mining profits by 50%, many cryptocurrency miners are turning to artificial intelligence (AI) business models.
In light of the cryptocurrency market’s volatility, Bitcoin miners are adapting their existing infrastructure to serve the data storage and computing needs of the AI sector. This transition not only provides a more stable and predictable revenue stream for firms operating in the mining industry, but it could also yield substantial benefits for the wider technology landscape.
Industry Advantage: The AI Boom and Its Surge in Energy Demand
Energy has become a critical commodity in the AI industry due to the soaring demand for heavy-duty computing capacity. This is driven by AI applications such as ChatGPT, which reportedly require 10 times more energy than a standard Google search.
To address this growing demand, AI companies are actively on the hunt for affordable power sources and large expanses of land for data centers. Having sufficient power available now is vital when considering it takes years to build high-performance computing (HPC) data centers from scratch, with current wait times for electrical-grid connections extending up to six years.
In the industry’s favour, Bitcoin miners’ expertise in leveraging advanced equipment and securing substantial, low-cost energy makes them highly valuable partners for powering AI-driven data centres.
In Bitcoin’s early days, miners discovered that expanding their computer rigs significantly boosted their profits, leading them to build vast server farms that harnessed cheap energy sources and operated around the clock – this is the scale that the AI industry is now seeking.
Additionally, the advanced infrastructure developed by some Bitcoin miners, originally designed to solve complex cryptographic puzzles, is equally capable of handling the computationally intensive tasks required by AI.
While not all mining rigs meet the standards of data center-grade infrastructure, more advanced miners have a proven track record deploying state-of-the-art technologies and engineering solutions like direct-to-chip cooling to get the best possible performance out of hardware.
This capability enables Bitcoin miners to diversify their revenue streams and maximize returns on their investments.
Many mining companies are already capitalizing on this opportunity. For example, Core Scientific (CORZ) has announced a partnership to host over 200 MW of graphic processing units (GPUs) for the AI startup CoreWeave. This contract is expected to generate net profits of approximately $3.78 billion, reflecting a 71% return.
Related:How LLMs on the Edge Could Help Solve the AI Data Center Problem
It’s clear that such collaborations can be a win-win situation as AI companies benefit from the infrastructure Bitcoin miners provide, while miners gain from the stability and potential profitability of AI computing revenue amid the current AI boom.
Sustainable AI-Driven Mining
That said, the collaboration between AI companies and Bitcoin miners raises significant environmental concerns due to the high energy consumption of both sectors. This is due to the shared infrastructure between Bitcoin mining and AI data centers further exacerbating strain on power grids and potentially increasing overall energy consumption.
With AI-driven data centers expected to account for 3% of the nation's electricity by 2026, and Bitcoin mining already consuming up to 2.3% of the nation’s electricity, their combined impact could lead to even greater energy demands and environmental consequences.
Together, these two sectors could significantly strain the power grid and contribute to increased carbon emissions. In fact, the International Energy Agency (IEA) reported that data centers in the US will consume twice as much electricity by 2026, largely driven by the demands of cryptocurrency mining and AI.
To reduce these risks and ensure a sustainable partnership, Bitcoin mining operations need to invest in renewable energy sources, including wind, solar and hydroelectric power. New research suggests that integrating Bitcoin mining with green hydrogen could facilitate a faster transition to clean energy, potentially increasing the capacity of solar and wind power installations by up to 73%.
AI technologies can also play a crucial role in enhancing sustainability by optimizing renewable energy usage, dynamically adjusting energy sources based on availability and cost to reduce carbon footprints.
Notably, Bitcoin miners have experience leveraging renewable energy sources and demand response programs to deliver enhanced grid stability.
As a uniquely curtailable load, Bitcoin mining is suited to active power management. This improves grid stability and helps support the usage of intermittent energy sources such as wind and solar. Flexible usage means renewables can be maximized, rain or shine.
While some AI workloads are not curtailable to the same extent, the strategies and relationships developed by miners can help them ensure grid stability even as their overall energy usage increases.
Regulatory Frameworks for Sustainable Partnerships
As Bitcoin mining evolves to support AI’s data and computing needs, prioritizing sustainability is essential. At the same time, we must not overlook the importance of establishing and adhering to regulatory frameworks.
By implementing effective regulations, we can balance innovation with sustainable practices reasonably, ensuring technological advancements do not come at the expense of the environment.
For instance, Germany has been at the forefront of enacting regulatory frameworks like the German Energy Efficiency Act. This legislation introduced new rules on energy efficiency, energy reuse, power supply from renewable energies and energy management systems – all intended to make the operation of data centers more sustainable.
Implementing similar regulations that align technological advancements with sustainable practices can significantly help alleviate strain on the power grid and reduce energy consumption, while ensuring that growth benefits both the energy sector and broader business objectives.
Ultimately, achieving sustainability in AI-driven and Bitcoin mining operations requires a collaborative effort between government and industry players.
As these new partnerships develop, they promise benefits for both sectors. However, we must remain committed to reducing energy consumption and mitigating the impact on the power grid.
By working together, we can ensure that these technological advancements drive progress while also supporting environmental stewardship.
NB: Rosanne Kincaid-Smith is Group COO at Northern Data, a leading provider of high-performance computing (HPC) solutions and data centre services.