Introduction
As AI and data centers drive a surge in U.S. electricity demand, nuclear power is emerging as a critical solution to meet this challenge. A recent Deloitte report, highlighted by ZeroHedge, projects that new nuclear capacity could supply 10% of the increased electricity demand from data centers by 2035. With tech giants like Microsoft, Amazon, and Google betting big on nuclear, Small Modular Reactors (SMRs) like the Westinghouse AP-300 are poised to play a starring role. Here’s how nuclear power is set to transform the data center landscape and why New Power and Data is excited about this opportunity.
The Data Center Boom and Nuclear’s Role
Deloitte’s April 9, 2025, report forecasts a five-fold increase in U.S. data center electricity demand, from 33 GW in 2024 to as much as 176 GW by 2035. This growth, driven by AI and cloud computing, is expected to contribute to a 50% rise in total U.S. electricity demand through 2050, according to the National Electrical Manufacturers Association.
To address this, Deloitte estimates that 35 GW to 65 GW of new nuclear capacity will be added over the next decade through:
- Power Uprates: Enhancing existing nuclear plants (10 GW to 20 GW).
- Reactor Restarts: Reviving retired reactors, like the Three Mile Island’s Crane Clean Energy Center (reopening by 2028).
- New Deployments: Building reactors at greenfield and existing sites, including coal-to-nuclear conversions (20 GW to 30 GW).
Of this new capacity, approximately 11 GW to 19 GW—about 10% of the data center demand increase—could be dedicated to powering data centers. Nuclear’s reliability, low emissions, compact footprint, and competitive long-term costs make it an ideal fit for this high-energy sector.
Why SMRs Are a Game-Changer
Small Modular Reactors, such as the Westinghouse AP-300, are at the forefront of this nuclear renaissance. Deloitte highlights SMRs’ unique advantages for data centers, including:
- Secure Fuel Forms: Enhancing safety and operational stability.
- Grid Islanding: Allowing independent operation during grid disruptions.
- Continuous Operation: Providing reliable baseload power for years without refueling.
The AP-300, with its 300-MWe capacity and ultra-compact design, is particularly well-suited for data centers. Its modular construction reduces build times to as little as 36 months and costs to around $1 billion per unit, making it a cost-effective option compared to traditional reactors, which range from $6,417/kW to $12,681/kW in 2024 construction costs.
Tech Giants Lead the Charge
Major tech companies are already embracing nuclear to power their data centers:
- Microsoft: Signed a 20-year agreement with Constellation Energy to restart an 835-MW reactor at Three Mile Island by 2028.
- Amazon: Plans to deploy over 5 GW of SMR capacity by 2039 using X-energy’s technology.
- Google: Partnered with Kairos Power for 500 MW of SMR capacity by 2035.
- Meta: Issued a request for proposals for up to 4 GW of new nuclear deployments starting in the early 2030s.
These investments signal strong confidence in nuclear’s ability to deliver reliable, carbon-free energy for AI-driven data centers. The Westinghouse AP-300, with its proven technology derived from the operational AP-1000, is well-positioned to compete in this market, offering a scalable solution for hyperscalers and smaller operators alike.
Overcoming Challenges
Despite its promise, nuclear faces hurdles. High construction costs and long lead times remain barriers, though SMRs like the AP-300 mitigate these through modular designs and streamlined assembly. Deloitte suggests that advanced project management, digital twinning, and construction innovations can further reduce costs. Additionally, leveraging existing nuclear and coal plant sites—capable of hosting up to 269 GWe of new nuclear capacity, per the U.S. Department of Energy—will accelerate deployments.
Recent policy changes, such as President Trump’s executive orders to fast-track SMR development and streamline reactor approvals, are also boosting the industry. These efforts align with New Power and Data’s vision of a nuclear-powered future for data centers.
The Westinghouse AP-300 Advantage
At New Power and Data, we’re particularly excited about the Westinghouse AP-300 SMR. Its compact footprint, equivalent to 25% of a soccer pitch, makes it ideal for integration near data centers, minimizing transmission losses. The AP-300’s passive safety systems and proven fuel design ensure reliability, while its ability to support coal-to-nuclear conversions taps into existing infrastructure, as seen in projects across 11 U.S. states. With global interest in the AP-300, from the UK’s North Teesside project to potential deployments in Ukraine and Finland, this technology is set to lead the global nuclear renaissance.
Conclusion
As data centers reshape the U.S. energy landscape, nuclear power—led by innovative SMRs like the Westinghouse AP-300—is stepping up to meet 10% of the projected demand increase by 2035. With tech giants and policymakers rallying behind nuclear, the stage is set for a cleaner, more reliable energy future. At New Power and Data, we’re committed to harnessing this potential to power the AI revolution and beyond.
