Meta is joining Big Tech's AI rush to nuclear power
Meta Platforms (META) is on the hunt for nuclear energy partners to power its artificial intelligence goals. The company put out a request for proposals Tuesday for nuclear energy developers in the U.S. that can provide one to four gigawatts of new nuclear generation capacity starting in the early 2030s.
Partnership for AI Innovation
“Advancing the technologies that will build the future of human connection — including the next wave of AI innovation — requires electric grids to expand and embrace new sources of reliable, clean and renewable energy,” Meta said in a statement. It’s looking for partners that will permit, design, engineer, finance, construct, and operate power plants to create long-term nuclear resources.
Increased AI Spending
Meta has doubled down on AI spending, with CEO Mark Zuckerberg promising to ramp up AI investments into next year. In its third-quarter earnings report, Meta raised capital expenditure estimates for the 2024 fiscal year to between $38 billion and $40 billion.
The Rise of Nuclear Power in AI
AI — and the data centers that power it — are extremely power hungry. One query on ChatGPT needs almost 10 times as much electricity as a Google search, according to a study by Goldman Sachs (GS).
Partnerships with Energy Companies
Over the last several months, major companies including Amazon, Microsoft, and Google have announced partnerships with energy companies to set up and construct what are known as “small modular reactors,” or SMRs — smaller and less potent nuclear reactors with advanced safety features. They can also be put online faster because construction takes less time.
Amazon (AMZN) signed an agreement with with Talen Energy “to co-locate a data center facility next to” the company’s Pennsylvania-based nuclear facility. Google (GOOGL) announced it had signed “the world’s first corporate agreement to purchase nuclear energy” from SMRs developed by California-based Kairos Power, and expects the first SMR to go online by the end of the decade.
Conclusion
As Meta and other tech giants continue to invest in AI, the need for reliable and sustainable energy sources like nuclear power becomes increasingly important to support the growing demands of data centers. This shift towards nuclear energy partnerships signifies a significant step towards a more sustainable future for AI innovation and development.
