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Tech Giants Back Nuclear Energy but Hesitate to Fund Its Development
As the demand for power surges in the United States, driven by advancements in artificial intelligence and data centers, major technology firms like Microsoft and Google are advocating for increased use of nuclear energy to power their expansive facilities. However, there is a significant gap between their enthusiasm for cleaner, reliable energy and their willingness to invest in the costly and risky business of building new nuclear reactors.
High Costs and Risks
At a recent American Nuclear Society conference, representatives from these tech giants highlighted the high financial risks associated with developing new nuclear plants. Briana Kobor from Google explained that while tech companies are open to paying a premium for continuous clean energy, they are reluctant to invest directly in nuclear power projects due to the high costs and potential delays. She emphasized that the capability to manage these risks is not within the tech companies' expertise.
The timing of these comments is notable, coming just after Bill Gates announced his financial commitment to a next-generation nuclear plant in Wyoming. TerraPower, a company he supports, began construction on this project, but it has already faced delays, underscoring the inherent risks in nuclear development. Similarly, Southern Co.'s recent completion of nuclear projects in Georgia was marred by significant delays and budget overruns.
Staying within Their Strengths
Adrian Anderson from Microsoft echoed this sentiment, suggesting that technology firms should concentrate on their core business operations—building and managing data centers—while leaving the energy sourcing to utility companies. He argued that it is illogical for individual data center operators to undertake the assessment of nuclear technologies.
A Need for Financial Support
The development of new reactor designs involves multiple firms, all of which require substantial financial backing to transition from research to commercial implementation. Speaking at the conference, Peter Freed, formerly from Meta Platforms Inc., pointed out that relying on technology companies to finance these ventures is impractical.
While there is a collective desire to see more nuclear reactors in use, the tech industry’s role is likely to remain as end-users rather than financiers. The burden of funding and managing the risks associated with new nuclear technologies is expected to fall on entities better equipped to handle such challenges.
