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How Will Big Tech’s Big Bet On Nuclear Shape The Future Of Work?

Major tech companies are looking for ways to offset the increased emissions and energy needs of AI in the future of work. Is nuclear power the answer?

Emma AscottbyEmma Ascott
October 22, 2024
in Tech
Reading Time: 6 mins read
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How Will Big Tech’s Big Bet On Nuclear Shape The Future Of Work?

The Department of Energy now plans to distribute up to $900 million to assist the initial domestic deployment of small modular nuclear reactor technology.

  • Major tech companies like Amazon, Google, and Microsoft are pursuing nuclear power investments, particularly focusing on small modular reactors (SMRs), to meet surging energy demands driven by AI and data centers while aiming for carbon-free operations.
  • The U.S. government supports nuclear energy development through funding initiatives, emphasizing the role of increased nuclear capacity in achieving emissions reduction goals and meeting future energy needs.
  • These investments have the potential to create new career opportunities, with growing demand for roles in clean energy development, data management, energy solutions and safety regulators.

When OpenAI trained GPT-3, that work produced the equivalent of around 500 tons of carbon dioxide. And after Google implemented its AI summarizer, its greenhouse gas emissions rose by 48%. 

But by 2030, Google has committed to achieving net-zero emissions and ensuring that it utilizes carbon-free energy continuously, 24/7, across all the grids it operates. 

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Reconciling these two facts seems almost impossible…but there may be a solution on the horizon.

As the need for clean energy escalates, especially to support artificial intelligence and data centers, major tech companies are diversifying their energy strategies beyond traditional renewable sources like solar and wind — and betting that nuclear power is the viable solution to support the future of work. 

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Recent announcements from Amazon, Google, and Microsoft make it clear they are all moving toward small modular nuclear reactors (SMRs) to help meet their climate goals and power requirements.

As industries like nuclear technology and renewable energy expand, new career pathways may emerge, fostering a more diverse and innovative workforce in the AI era. This could lead to a more stable job market in the tech sector, with growing demand for roles in development, data management, energy solutions and safety regulators.

A robust nuclear energy sector, then, could not only support tech companies’ sustainability efforts but also become the foundation for the next wave of technological advancements, playing a critical role in shaping the future of work.

Recent Developments in Nuclear Energy Investments

On Wednesday, Amazon announced a substantial investment of over $500 million to develop small modular nuclear reactors. This comes on the heels of Google’s deal to construct seven new SMRs and Microsoft’s plans to restart Pennsylvania’s Three Mile Island plant — a move aimed at supplying energy to its data centers. 

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It’s clear tech giants are now vigorously seeking carbon-free energy sources amidst surging electricity demands.

Currently, the U.S. operates 94 nuclear reactors, but only two new ones have been built in recent decades. 

The Need for Clean Energy Solutions

The International Energy Agency predicts that data centers’ electricity consumption could exceed 1,000 terawatt hours by 2026, more than doubling from 2022 levels. This sharp increase in energy demand is primarily driven by the electrification of buildings and vehicles, as well as the rising use of AI. 

Nuclear energy, which emits virtually no greenhouse gasses, presents a compelling alternative to fossil fuels.

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The Biden administration recently emphasized the importance of nuclear power in combating climate change, stating that U.S. nuclear capacity must triple to meet emissions reduction goals. 

This reflects a broader strategy to revitalize America’s nuclear sector, which is viewed as essential for supplying clean energy to a growing economy.

The Promise and Challenges of Small Modular Reactors

Small modular reactors differ from traditional nuclear plants in that they feature simpler designs and can be scaled according to demand. 

Proponents argue that SMRs can be built more cost-effectively in factories, potentially making nuclear power more accessible. 

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However, critics warn that SMRs may be more expensive to operate due to challenges in achieving economies of scale, according to AP. 

Some concerns persist over the long-lasting radioactive waste produced by nuclear power, as the U.S. currently lacks a permanent repository for such waste.

One alternative and solution is nuclear fusion energy — different from nuclear fission. With fission, there is some public concern about radioactive waste and the small possibility of a meltdown. 

With fusion energy, there is no such concern; fusion energy does not produce long-lived radioactive waste, does not pollute, and can be limitless. There is also no potential for an explosion or meltdown, as the fusion process doesn’t allow for such outcomes. 

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Fusion energy hasn’t been achieved just yet, but a handful of American companies such as TAE Technologies, Commonwealth Fusion Systems, and Zap Energy are working on making fusion a reality by the early 2030s — as it is a difficult science. 

Despite these challenges, the recent investments by tech giants underscore a growing belief that nuclear energy could play a critical role in America’s energy future. As Amazon’s CEO of AWS Matt Garman stated, the agreements are expected to encourage the construction of innovative nuclear technologies that can generate energy for decades.

Government Support and Funding Initiatives

The U.S. government is taking steps to support the development of SMR technology through funding initiatives stemming from the 2021 bipartisan infrastructure law. 

The Department of Energy now plans to distribute up to $900 million to assist the initial domestic deployment of SMR technology. This funding will be allocated in two tiers: one for milestone-based awards and another to address gaps in the domestic nuclear industry, such as design and licensing challenges.

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U.S. Secretary of Energy Jennifer Granholm has emphasized the importance of revitalizing the nuclear sector, stating, “Revitalizing America’s nuclear sector is key to adding more carbon-free energy to the grid and meeting the needs of our growing economy.” 

This sentiment is echoed by lawmakers who believe that recent developments could pave the way for the successful deployment of SMRs in the U.S.

A New Era for Nuclear Power, a Brighter Future for Humans

As tech giants continue to invest in nuclear energy, the future of clean electricity looks promising if uncertain. 

While these initiatives could help meet the increasing energy demands of AI and data centers that are vital to support the future of work, the industry still faces challenges, including regulatory hurdles and public perception of nuclear safety. 

With a concerted effort from both the private sector and the government, the potential of small modular reactors to redefine the energy sector is substantial.

By investing in nuclear energy, tech giants can ensure that their operations are sustainable and resilient, ultimately enabling them to scale AI technologies without compromising their environmental commitments. 

This could lead to a more stable job market in the tech sector, where roles related to AI development, data management, and energy solutions will likely expand. 

As the demand for skilled workers in nuclear technology and renewable energy grows, we may see new career pathways emerging, contributing to a more diverse and innovative workforce in the era of AI. 

In essence, a robust nuclear energy sector could provide the foundation needed for the next wave of technological advancements, making it a critical player in shaping the future of work.

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Emma Ascott

Emma Ascott

Emma Ascott is a contributing writer for Allwork.Space based in Phoenix, Arizona. She graduated from Walter Cronkite at Arizona State University with a bachelor’s degree in journalism and mass communication in 2021. Emma has written about a multitude of topics, such as the future of work, politics, social justice, money, tech, government meetings, breaking news and healthcare.

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