Meta Becomes The Latest Big Tech Company Turning To Nuclear
Meta has cut a 20-year deal to secure nuclear power to help meet surging demand for artificial intelligence and other computing needs at Facebook’s parent company. The investment with Meta will also expand the output of a Constellation Energy Illinois nuclear plant. The agreement announced Tuesday is just the latest in a string of tech-nuclear partnerships as the use of AI expands. Financial details of the agreement were not disclosed.
Expanding Clean Energy Output
Constellation's Clinton Clean Energy Center was actually slated to close in 2017 after years of financial losses but was saved by legislation in Illinois establishing a zero-emission credit program to support the plant into 2027. The agreement deal takes effect in June of 2027, when the state's taxpayer-funded zero-emission credit program expires.
With the arrival of Meta, Clinton’s clean energy output will expand by 30 megawatts, preserve 1,100 local jobs and bring in $13.5 million in annual tax revenue, according to the companies. The plant currently powers the equivalent of about 800,000 U.S. homes.
Industry Trends and Investments
Surging investments in small nuclear reactors come at a time when large tech companies are facing two major demands: a need to increase their energy supply for AI and data centers, among other needs, while also trying to meet their long-term goals to significantly cut greenhouse gas emissions.
Constellation, the owner of the shuttered Three Mile Island nuclear power plant, said in September that it planned to restart the reactor so tech giant Microsoft could secure power to supply its data centers. U.S. states have been positioning themselves to meet the tech industry’s power needs as policymakers consider expanding subsidies and gutting regulatory obstacles.
Challenges and Future Outlook
It’s unlikely the U.S. could quadruple its nuclear production within the next 25 years, like the White House wants, due to various challenges in the industry. Advanced reactor designs from competing firms are being considered as a reliable, climate-friendly way to meet electricity demands from tech giants.
Amazon, Google, and Microsoft are also investing in solar and wind technologies to reduce greenhouse gas emissions. The industry is evolving rapidly as companies seek sustainable energy sources to power their operations.
Shares of Constellation Energy Corp., based in Baltimore, were flat Tuesday.
