As more data centers are being planned or constructed across the United States, many states are weighing the option of setting up nuclear energy plants in order to meet the growing demand for power to run these data centers. The surge in artificial intelligence tools and cloud computing has driven an unprecedented need for electricity, with AI hyperscalers like Amazon.com Inc. (NASDAQ: AMZN) closely watching the debate. However, experts warn that nuclear facilities are very costly and cannot be deployed quickly enough to meet the energy needs of data centers.
Given that at least 50% of all Americans use AI tools each week, it is clear that data centers are needed, but how to provide the electricity they need is still a subject of heated debate. Nuclear energy offers a carbon-free, reliable baseload power source, but the timeline for building new reactors often spans a decade or more, far slower than the rapid expansion of data centers. Some states are exploring small modular reactors (SMRs) as a faster alternative, but these remain unproven at scale.
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