Could Nuclear Power Be the Answer to Datacenter Sustainability?

As digital transformation accelerates and artificial intelligence becomes increasingly mainstream, the world’s demand for data storage, processing, and transfer has skyrocketed. But with that growth comes a colossal appetite for power. Datacenters—the backbone of our digital age—are among the most energy-intensive infrastructures globally. This rising power demand presents an urgent sustainability challenge that traditional renewable energy sources may not be equipped to meet alone.

So, could nuclear power be the game-changing solution for a sustainable, resilient, and scalable energy future for datacenters?

Let’s explore.

The Sustainability Challenge of Datacenters

Datacenters are the unseen engines of our hyperconnected world. From video streaming and cloud storage to AI training models and financial transactions, everything we do online relies on these high-powered facilities. But the convenience and speed they provide come at a cost—energy. Let’s break it down with some numbers and facts:

Datacenters’ high energy consumption has reached unprecedented levels in recent times. According to the International Energy Agency (IEA), global datacenter electricity consumption reached nearly 460 terawatt-hours (TWh) in 2022 and could more than double by 2026, potentially hitting 1,000 TWh.

Unlike most industries that operate on schedules, datacenters run 24/7, requiring stable, uninterrupted power. Cooling systems further contribute to energy usage, with estimates showing that cooling alone can account for 30–50% of total energy consumption in some datacenters.

Renewables, on the other hand, come with certain challenges. While solar and wind are pivotal in the clean energy transition, their intermittent nature (limited to daylight hours or weather conditions) makes them unreliable for continuous operations without substantial energy storage. Even with battery storage or grid balancing solutions, renewables struggle to deliver the base-load power required for always-on operations.

This conundrum places datacenters in a critical position: How can they scale sustainably when renewables alone can’t provide consistent, round-the-clock power?

That’s where Nuclear Power comes in with immense potential!

Nuclear Power as a Clean, Reliable Energy Source

Nuclear power offers a compelling answer. Unlike fossil fuels, nuclear energy is carbon-free, extremely reliable, and has one of the smallest land footprints per unit of energy generated. And unlike renewables, it doesn’t depend on the weather. Here’re some key benefits of nuclear power:

• Reliable Base Load:Nuclear reactors operate continuously for 18–24 months before refueling. This makes them ideal for providing stable base-load power – precisely what datacenters need.
• Energy Density & Land Use Efficiency: A single nuclear facility can generate the same amount of power as thousands of acres of solar panels or wind turbines. In high-density regions, this efficient land use is a major advantage.
• Existing Success Stories: In 2024, a major cloud provider in the U.S. acquired a 960 MW datacenter campus co-located next to a nuclear plant in Pennsylvania. This direct partnership eliminates grid transmission losses, secures long-term stable power pricing, and signals growing confidence in nuclear for hyperscale data operations. Models like these are great examples for economies like India where the datacenter footprint is surging significantly.

Small Modular Reactors: A Tailored Solution for Datacenters

While Nuclear power is a great alternative, traditional large nuclear power plants are not always a feasible option. Traditional nuclear plants, while powerful, are often large, expensive, and slow to build. This is where Small Modular Reactors (SMRs) make an impact—a next-generation innovation in nuclear technology designed to address these limitations.

SMRs are compact nuclear reactors (up to 300 MW) that can be factory-built and assembled onsite, reducing construction time and costs. Their size makes them ideal for localized deployment, including directly adjacent to or within datacenter campuses. Let’s start by examining some of the key aspects of SMR in the current context:

• Scalability & Resilience:Unlike massive centralized plants, SMRs can be scaled modularly. This allows datacenters to add capacity incrementally, enhancing resilience, energy independence, and cybersecurity by minimizing dependence on public grids.
• Safety Innovations: Modern SMRs incorporate passive safety features such as negative temperature coefficients, which automatically decrease reactor activity in the event of overheating. These systems require minimal operator intervention, reducing human error.
• Global Momentum: Over 85 SMR designs are currently in development across 20+ countries. In the U.S. alone, $900 million has been allocated to support SMR deployment. India has also pledged nearly $3 billion to advance its nuclear program, including partnerships with the private sector for SMR development.

In fact, many forward-thinking datacenter operators are no longer waiting on the sidelines. Several are already co-locating with existing nuclear plants to secure dedicated clean energy sources, investing in future technologies such as SMRs and even nuclear fusion and signing power purchase agreements (PPAs) with nuclear startups to secure future capacity.

For example, a blockchain company in 2024 announced plans to power two massive datacenters using 24 SMRs providing nearly 2 GW of capacity. Meanwhile, another tech leader signed a PPA with a fusion startup, banking on next-gen nuclear becoming commercially viable by 2028.

Overcoming Obstacles: Safety, Cost & Public Perception

Despite the many advantages, nuclear energy faces well-documented hurdles that must be addressed for broader adoption.

The biggest of all concerns perhaps is the public perception and safety concerns surrounding nuclear power. Chernobyl and Fukushima, for example, left lasting scars on the public consciousness. At a time when the world is facing unparalleled energy crisis, it’s critical to address these concerns and reiterate the fact that modern reactors are not the same as those of the past.

Today’s designs emphasize fail-safe systems, remote monitoring, and inherent safety. Communicating the data and advancements around modern nuclear safety is therefore essential to shift public opinion.

With the rise of SMRs, cost & financing challenges can also be effectively addressed. Nuclear facilities—especially large ones—have historically faced cost overruns. But SMRs offer a more economical path, thanks to:

• Standardized designs that reduce engineering costs.
• Factory production that minimizes site-specific construction variables.
• Private sector investment: In 2024, SMR-related startups attracted over $3.9 billion, up from just $355 million the previous year.

Working on the regulatory bottlenecks should be another key priority for nations. Nuclear energy is tightly regulated for safety—and rightly so. However, navigating the lengthy approval processes is a barrier to quick deployment. Some regions, like the U.S. and France, are already working to streamline permissions for SMRs. Continued policy support and public-private partnerships will be vital. 

The Future of Datacenter Power: A Hybrid Model

It’s unlikely that nuclear alone will power every datacenter. But it doesn’t have to.

The future is about hybrid models—where nuclear provides stable, round-the-clock base-load power, and renewables plus storage add flexibility and additional capacity. This combination allows datacenters to:

• Meet net-zero commitments
• Ensure 24/7 uptime
• Avoid grid instability and power shortages
• Scale without energy constraints

With datacenter power demand soaring and sustainability pressures mounting, the industry is at a crossroads. Nuclear power—especially through innovations like SMRs—offers a real, scalable path forward.

It’s not a question of if nuclear will play a role in powering the next generation of digital infrastructure, but how fast the industry can overcome the perception, policy, and investment barriers to make it happen.

By embracing a balanced, multi-source energy strategy—and actively investing in next-gen nuclear—datacenter operators can build not just for speed and scale, but for sustainability and long-term resilience.