Nuclear Energy for AI: What Tech Companies Are Actually Buying—and What’s Still Just a Plan

Reports say that technology companies are “buying reactors.” It is more accurate to say that they are signing long-term contracts to purchase electricity, financing the modernization of existing power plants, and supporting the development of new types of reactors. The distinction is important: while the first two can be verified today, the third is still just a plan for around 2030.

Why Artificial Intelligence Needs So Much Electricity

The International Energy Agency (IEA) reports that global electricity consumption in data centers rose by 17% in 2025, which is more than five times faster than the growth in overall electricity demand (3%). The agency expects data center consumption to double by 2030 and AI-related consumption to triple.

Nuclear power alone cannot meet this increase in demand. According to the IEA’s analysis summary, approximately half of the growth in data center consumption will be met by renewable sources, while natural gas and nuclear power will each contribute roughly the same amount of additional generation (on the order of 175 TWh). Nuclear power is therefore one of several sources, not the sole solution.

What Tech Companies Are Actually Doing

They buy electricity, not the reactors themselves

A typical tool is a so-called PPA (power purchase agreement), which is a long-term contract in which the customer guarantees to purchase electricity under agreed terms. This provides the power plant operator with the revenue certainty needed for investments. Meanwhile, the reactors continue to be owned and operated by the energy company.

Renovation and Modernization of Existing Power Plants

The most concrete example is the Crane power plant (formerly Three Mile Island, Unit 1) in Pennsylvania. Constellation plans to restart it with a capacity of 835 MW, and Microsoft has committed to purchasing its electricity for 20 years. According to a 2024 investment presentation, the refurbishment was expected to cost approximately $1.6 billion. The original target was 2028, but the company moved it up to 2027. In recent statements, however, Constellation’s CEO noted that grid connection could be delayed until the 2030s without a solution, which is why the company requested that the regulator transfer capacity from another power plant. According to reports, the regulator approved the request.

A similar model is emerging elsewhere: In October 2026, Google announced a 20-year contract with Constellation for 890 MW from existing units, which is intended to finance the modernization of 11 nuclear units at six locations. The price was not disclosed.

Small Modular Reactors

Newer types of reactors (SMRs, small modular reactors) are smaller units that are largely factory-built. In 2024, Google entered into an agreement with developer Kairos Power to purchase 500 MW from six to seven reactors, with the first expected to be operational by 2030 and the entire project by 2035. During the same period, Amazon led an investment round for developer X-energy totaling approximately $500 million and is supporting a project with public utility Energy Northwest, with an initial capacity of 320 MW and the potential to expand to 960 MW.

Important note: According to the IEA, the first SMRs will appear around 2030. Purchasing agreements between technology companies are largely conditional, and according to the agency, their total capacity has increased from 25 GW at the end of 2024 to 45 GW. This is not, therefore, electricity they are already receiving.

Why Nuclear?

This is my explanation, not a claim by the source: data centers need electricity practically around the clock, and nuclear power plants generate power steadily regardless of the weather. That is why nuclear power is discussed as a supplement to renewable sources, not as a replacement for them. The companies themselves justify their choice with the need for “24/7” carbon-free electricity.

Risks and Unanswered Questions

• The technology has not yet been proven on a large scale. The SMR industry has not yet demonstrated large-scale commercial deployment, as reports from 2024 already noted.
• Grid connection and permitting. Even the retrofit of an existing power plant has faced delays in connecting to the grid.
• Timelines. The first SMRs are expected around 2030, with the Crane plant’s refurbishment slated for 2027; both could be affected by regulatory changes or financing issues.
• Unknown terms. Companies typically do not disclose contract prices and terms.

Conclusion

Technology companies have indeed entered the nuclear energy sector, but so far primarily as major customers and investors, not as reactor owners. The next realistic megawatts will come from refurbished and modernized existing power plants; new reactor types will not appear until the next decade. With every news report, therefore, it is worth distinguishing whether it concerns a signed contract, an investment, or electricity that is already being supplied.