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As the demand for artificial intelligence (AI) and cloud computing accelerates, data center energy consumption has become a pressing global concern. In response, industry leaders are exploring alternative energy sources.
Nvidia Corp. CEO Jensen Huang has advocated for nuclear power as a critical solution for meeting the growing energy needs of AI data centers, citing its reliability and sustainability.
Nuclear Energy As a Solution For Rising Energy Demands in AI Infrastructure
Data centers account for 1-2% of global energy use, a figure expected to climb to 3-4% by the decade’s end. But this figure is expected to climb even higher. Goldman Sachs Research estimates that power consumption in data centers will grow by 160% by 2030, driven largely by AI workloads.
In a September 27 interview with Bloomberg TV, Huang emphasized that AI data centers require stable and continuous energy to operate at full capacity, a challenge that traditional power sources struggle to address.
To combat this energy crisis, many AI-powered data centers are actively exploring alternative power sources, including nuclear energy, which offers high energy density with low carbon emissions.
Nvidia $NVDA CEO Jensen Huang said today:
“Nuclear is wonderful as one of the sources of energy, one of the sources of sustainable energy” … “It won’t be the only one. We’re going to need energy from all sources and balance the availability and the cost of energy as well as… pic.twitter.com/P3HcpNRLQV
— Evan (@StockMKTNewz) September 27, 2024
Despite the benefits, the adoption of nuclear energy is not without challenges. Nuclear power faces obstacles such as high initial costs, regulatory hurdles, and public safety concerns.
However, the emergence of small modular reactors (SMRs) offers a scalable and localized energy solution that could mitigate these drawbacks and provide a cleaner alternative to fossil fuels. Beyond the energy concerns, the conversation with the Nvidia boss also touched on geopolitical challenges facing tech companies.
Huang highlighted Nvidia’s commitment to serving its Chinese customers while adhering to US export restrictions.
He emphasized the need to balance business goals with compliance, stating that Nvidia will continue to support its Chinese clientele within the boundaries of current policies.
Microsoft Strikes Nuclear Deal to Power AI Projects
In a similar move towards clean energy, Microsoft has struck a 20-year deal to purchase power from Three Mile Island, the site of the US’s worst nuclear disaster.
Based Microsoft just signed a 20-year deal to revive Three Mile Island’s nuclear power plant by 2028 to provide 837MW of power for AI data center needs pic.twitter.com/GbShNIXZMI
— NIK (@ns123abc) September 20, 2024
The agreement aims to power Microsoft’s AI projects by 2028 and aligns with the broader push for nuclear power in the tech industry.
Supported by President Biden’s climate bill, this deal awaits approval from the Nuclear Regulatory Commission.
