Ed Miliband, the British Energy Secretary, has declared the UK open for business in the nuclear power sector, echoing recent moves by US tech giants to secure nuclear energy for their operations. Speaking at the Nuclear Industry Association’s Nuclear 2024 conference, Miliband emphasized the crucial role of nuclear energy in the UK’s ambition to achieve a clean power system by 2030. He reiterated the government’s commitment to driving nuclear power development through both public and private investment, despite current economic challenges. This commitment is underscored by the ongoing contract negotiations between Great British Nuclear (GBN), the government body responsible for developing small modular reactors (SMRs), and four shortlisted companies, including Rolls-Royce and three US-based competitors. Miliband highlighted the potential of SMRs to power the “fourth industrial revolution”, drawing a parallel to coal’s role in powering the first.
The UK government’s pursuit of SMR technology is driven by several factors. SMRs offer lower capital costs and shorter construction times compared to traditional nuclear reactors, as they can be manufactured in factories and assembled on site. This modular approach streamlines construction and reduces potential delays. Furthermore, SMRs are seen as a crucial component in achieving the UK’s clean energy targets and enhancing energy security. The competition between Rolls-Royce and its US rivals, GE Hitachi, Holtec, and Westinghouse Electric, underscores the global race to develop and deploy this promising technology. The final decisions regarding the SMR contracts are expected next year, marking a significant step towards the revitalization of the UK’s nuclear industry.
The rising interest in nuclear energy extends beyond national governments and encompasses major tech companies, particularly in the US. These companies are seeking reliable and clean energy sources to power their expanding data centers and other energy-intensive operations, including artificial intelligence (AI) development. Google, Microsoft, and Amazon have all made recent moves to secure nuclear energy. Google has agreed to purchase several SMRs from Kairos Power, a California-based company, with the first unit expected to be operational by 2030. This move reflects Google’s recognition of the growing demand for electricity to support its AI ambitions and maintain its competitive edge. Similarly, Microsoft has secured a power purchase agreement with Three Mile Island in Pennsylvania, reviving the nuclear plant after five years of inactivity. Amazon has also invested in nuclear-powered data centers in Pennsylvania, demonstrating a growing trend among tech giants to embrace nuclear energy.
These tech companies’ investments in nuclear power are driven by several converging factors. Firstly, the increasing demand for electricity to power data centers and AI applications necessitates a reliable and scalable energy source. Nuclear power provides a consistent supply of electricity, unlike intermittent renewable sources like solar and wind. Secondly, these companies are under pressure to reduce their carbon footprint and demonstrate their commitment to sustainability. Nuclear energy offers a low-carbon alternative to fossil fuels, aligning with corporate sustainability goals. Thirdly, the increasing competitiveness in the tech industry demands efficient and cost-effective energy solutions. Nuclear power can potentially provide a stable and predictable energy price, shielding companies from the volatility of fossil fuel markets.
Miliband’s invitation to nuclear developers, coupled with the growing interest from tech companies, signals a potential revival of the nuclear industry. This renewed focus on nuclear energy is driven by both environmental concerns and economic considerations. The transition to a clean energy system requires substantial investments in new technologies and infrastructure. Nuclear power, with its potential for large-scale, carbon-free electricity generation, is increasingly seen as a vital component of this transition. Moreover, the economic benefits of nuclear power, including job creation and technological advancements, are also attracting attention.
In conclusion, the UK government’s commitment to nuclear power, particularly SMRs, alongside the increasing involvement of US tech companies, marks a significant trend in the energy sector. The pursuit of clean energy targets, coupled with the growing energy demands of data centers and AI applications, is driving a renewed interest in nuclear power. SMRs, with their potential for lower costs and shorter construction times, are emerging as a key technology in this new nuclear renaissance. The competition among various companies to secure contracts for SMR development reflects the growing recognition of the potential of this technology to reshape the energy landscape. The UK’s open invitation to nuclear developers, combined with the investments from major tech companies, indicates a strong momentum for the future of nuclear power.
