The Potential Impact of Nuclear Energy on Data Centers

The yet increasing electricity demand of data centers, which underpin the infrastructure of our digital society, are driving the search for carbon free energy solutions. Advances in artificial intelligence, cloud computing and cryptocurrencies may accelerate the growth even further. Data centers alone accounted for approximately 2% of global electricity demand in 2022, with projections suggesting this figure could rise to 5% by 2030. This increasing demand for data centers presents significant challenges for companies and governments aiming to meet ambitious decarbonization targets and climate goals.
Renewable energy has been expected to decarbonize and satisfy growing energy demand of data center industry. However, due to their intermittent nature, backup power with fossil fuels such as natural gas is required. Recent geopolitical events have caused drastic volatility and price hikes in oil and natural gas markets, exposing vulnerabilities in energy security, and thus, sparking interest in nuclear power and especially the novel small modular reactors. Nuclear power offers a stable, carbon-free baseload energy supply, making it an attractive prospect for the energy-intensive data center sector.
This study, based on a literature review, examines the evolving relationship between data centers and energy systems, with a particular focus on the integration of nuclear power. It explores the challenges of expanding data center capacity sustainably and evaluates how advanced nuclear technologies could support future growth while advancing global decarbonization goals and enhancing energy resilience.