The rapid expansion of artificial intelligence and cloud computing technologies has increased the demand for data centers by technology companies. Companies are developing new solutions to expand their infrastructure. Large technology companies such as Google, Amazon and Microsoft are looking for alternative energy sources for these centers, which account for a large part of their energy consumption.
The energy crisis of data centers
According to the International Energy Agency (IEA), by 2026, the energy consumption of data centers could be twice as high as two years ago, which means an energy increase of at least “one Sweden” or “one Germany”. In the European Union, data centers account for about 2.7% of total electricity consumption and this figure is expected to reach 3.21% by 2030.
From May 2024, data center operators will be required to report on indicators such as energy efficiency and renewable energy integration under the European Union’s Energy Efficiency Directive (EED). Similar to their counterparts in the US, data centers in Europe are also transitioning to SMRs, which reduce their dependence on traditional energy sources and provide carbon-free, sustainable energy.
A new energy source for technology companies
This has increased interest in using nuclear energy to reduce their dependence on traditional energy sources and minimize their carbon footprint. Expanding artificial intelligence and cloud computing technologies such as Google, Microsoft and Amazon are turning to nuclear energy to meet their energy needs. This is especially the case with Small Modular Nuclear Reactors (SMR) technologies, which are attracting attention as an important solution for providing low-carbon and sustainable energy.
Google announced a few days ago that it has ordered six to seven Small Modular Nuclear Reactors (SMRs) from the US company Kairos Power. Google has become the first technology company to order new nuclear power plants to provide low-carbon electricity for its data centers. Amazon announced an investment in US company X-Energy to power its data centers. Microsoft announced in September that it would buy 20 years of electricity from the decommissioned US Three Mile Island nuclear power plant if it is restored by US energy company Constellation Energy.
The importance of Small Modular Reactors
These steps are expected to strengthen the market for Small Modular Reactors (SMRs) and Advanced Modular Reactors (AMRs), which are considered crucial to supporting the climate transition. SMRs are distinguished by their compact size, are in some cases portable and can be placed closer to data center consumers.
SMRs have innovative safety features and make it easier to integrate nuclear technologies into new industrial applications. These technologies can play a significant role in decarbonizing data centers, as well as in sectors with difficult emissions such as transport, chemicals, steel and district heating. We are waiting for new innovations and major developments in the field of alternative energy…
Vurghun Hajiyev
