Data center power demand to triple by 2030: Nuclear energy expected to reduce grid dependence
- Based on the compound annual growth rate (CAGR) of recent years, data center power demand is expected to triple by 2030. This forecast is conservative, as the widespread adoption of artificial intelligence (AI) and other emerging technologies could accelerate growth even further. This surging demand is compelling the energy industry to adapt at an unprecedented pace.
- The U.S. power grid remains under pressure, struggling to balance growing demand with clean energy goals. While solar and wind have not kept pace with the transition away from coal, natural gas consumption has reached record highs to fill the gap.
- Nuclear power, particularly Small Modular Reactors (SMRs), provides a scalable, reliable energy solution for data centers. SMRs, with Nuclear Regulatory Commission (NRC) pre-approved designs, can be prefabricated and quickly installed, reducing construction time and increasing flexibility. Onsite SMRs allow data centers to operate independently of the local power grid, reducing downtime risks.
- The world’s largest technology companies, such as Amazon, Google and Microsoft, are leading the way in nuclear and circumventing energy adoption.
- With growing regulatory support for nuclear energy, localized commercial nuclear power could redefine data center site selection. Unlike traditional data centers, which need proximity to existing power grids, SMRs offer the flexibility to generate reliable on-site power anywhere. This breakthrough could sustain the data center industry's rapid growth and unlock opportunities in previously untapped markets.
November 13, 2024
