Data Center Developers Renew Trust in Small Nuclear Reactors Following Confidence Crisis
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Data centers are revisiting small nuclear reactors as a solution to their power challenges. Known as microreactors, these units produce up to 300 MW, akin to power plants on Navy submarines. Initial excitement turned to skepticism last year when a pioneering U.S. project collapsed due to rising costs. However, the industry is regaining interest, with major players signing agreements with reactor startups and investing in co-developing modular nuclear plants.
The urgency comes as power constraints deepen, pushing data centers to explore flexible energy solutions. Despite previous setbacks, firms like Oklo, backed by OpenAI’s Sam Altman, are advancing with new power agreements, signaling renewed confidence in small nuclear reactors as a viable future energy source. Industry experts predict the emergence of nuclear-powered data centers within the decade, driven by the need for sustainable, scalable power options amid increasing energy demands from AI and other tech developments.
Original article posted on June 17, 2024