Nuclear energy is inevitable as AI electricity demand continues to grow, Japan’s top utility advisor predicts

The rapid growth of artificial intelligence globally will cause a surge in electricity demands that will initially be met by fossil fuels, at least until nuclear power becomes the obvious solution, according to Dale Klein, former chairman of the US Nuclear Regulatory Commission. 

Klein, who is currently serving as the chairman of the nuclear reform monitoring committee for Tokyo Electric Power Co. (TEPCO), said nuclear energy is essential for long-term sustainability. However, he noted that these power sources would need time to scale up their infrastructure.

Meeting immediate energy demands

As data centers, the backbone of artificial intelligence operations, are built in countries like Japan and the US, natural gases have become necessities to meet surging power demands. Data centers are heavily reliant on energy, and the global boom of AI is pushing power grids to their limits. 

Natural gas is the most commonly used fuel in the US, and it is expected to account for up to 60% of new-generation projects in the coming years. While natural gas is cleaner than coal, this reliance on natural gases comes with its own set of environmental concerns, particularly related to methane emissions and long-term carbon commitments.

In other places, fossil fuels are an immediate solution to the rising electricity demand brought on by the rapid expansion of artificial intelligence technology. However, Klein sees these fossil fuel power sources as short-term solutions, especially because existing renewable energy and nuclear capabilities cannot be scaled up quickly enough to meet the demand. 

The timeline for nuclear energy 

According to Klein, gas will be used to assuage the boom in energy demand from AI until small modular reactors and larger plants can be built to enable nuclear energy to take its place.

Major tech companies like Google, Microsoft, and Meta have invested in nuclear solutions to power their AI operations. Meta recently announced plans to partner with developers for nuclear energy projects capable of delivering up to 4 gigawatts of power by the early 2030s. 

Similarly, Microsoft has secured nuclear power commitments, including a deal to purchase energy from the Three Mile Island nuclear plant. Meanwhile, Google is investing in small modular reactors (SMRs)

However, their methods cannot be applied universally or immediately. “We just cannot meet this big demand for these data centers without nuclear plants if we’re going to maintain a reduction in greenhouse gases,” Klein told Bloomberg.

Nuclear energy remains a sensitive topic in Japan due to the 2011 Fukushima disaster. The country has also been witnessing a downtrend in energy demands due to depopulation. However, people familiar with the problem have suggested that the situation can be turned around by building more data centers and semiconductor plants.

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