Renewed Tech Interest Could Revive Nuclear Energy, Despite SMR Skepticism and High Costs

Nuclear energy has long grappled with a public relations issue, largely due to high-profile disasters like Chernobyl and Three Mile Island. However, the recent surge in artificial intelligence (AI) has reignited interest in the sector, as Big Tech companies look for reliable and sustainable sources of power. Industry experts and engineers see this renewed attention as a significant positive shift, potentially propelling nuclear energy out of its decades-long slump. At the heart of this renaissance are small modular reactors (SMRs), which are much smaller in size and power output compared to traditional reactors. A typical SMR produces around 300 megawatts, whereas a conventional large light water reactor (LWR) can generate up to 1,000 megawatts. Despite the hype and substantial venture capital funding, the viability of SMRs remains a topic of intense debate within the industry. Christopher Perfetti, an associate professor of nuclear engineering at the University of Mexico and a former research and development scientist at Oak Ridge National Laboratory, welcomes the broadened focus on nuclear energy, irrespective of the specific reactor type. "I'm happy to build a light water reactor. I'm happy to build more SMRs," he stated. Perkins believes that any form of active development can help "get nuclear unstuck" and generate momentum. His perspective aligns with many engineers who are eager to see the industry progress, driven by the potential benefits of innovative reactor designs. However, not everyone shares this enthusiasm. Allison MacFarlane, former chairman of the US Nuclear Regulatory Commission, has expressed skepticism about SMRs. She points out that these reactors lack empirical evidence of their cost-effectiveness and safety, as none have been built in the US, and only a few are operational or under construction globally. MacFarlane emphasizes the financial challenges involved in building any nuclear reactor, noting the massive initial investments and frequent budget overruns. For instance, Units 3 and 4 at Plant Vogtle in Georgia, which began operations in 2023 and 2024, cost over $36 billion—more than double the original estimate. This financial burden is exacerbated by the need to establish or revitalize supply chains that are currently non-existent for SMRs. Despite these concerns, the influx of tech industry investment is undeniable. Microsoft, for example, has committed to restarting the Three Mile Island nuclear plant in New York, securing 20 years of nuclear energy to power its AI operations. Similarly, the Department of Energy is supporting the reopening of the Palisades plant in Michigan. Amazon has also invested $500 million in X-Energy, a startup focused on SMR development, citing the need for smart solutions to meet energy demands and combat climate change. Meta joined the fray in December 2024 by initiating its search for nuclear partnerships. The Tennessee Valley Authority (TVA), the nation's largest public power company and owner of the Sequoyah nuclear plant, has also submitted a request for a permit to construct a small nuclear reactor. This move illustrates the broader trend of both private and public entities recognizing the potential of nuclear energy to address environmental and economic challenges. PitchBook, a data insights firm, reported that energy investments, particularly in geothermal and nuclear technologies, have been a bright spot in the clean energy sector, attracting $2.4 billion in the first quarter of 2023. Notable investments include Pacific Fusion's $900 million Series A, X-Energy's $682.4 million Series C1, and Helion's $425 million Series F. These funding rounds highlight the growing confidence in nuclear technology among investors. Industry insiders see this renewed interest as a "new lease on life" for nuclear energy. Ricky Witt, who works in radiological safety at the Sequoyah Nuclear Plant, believes that nuclear energy will expand in the US, with SMRs playing a significant role. He cited the potential reopening of the Palisades and Three Mile Island plants, as well as the ongoing rehabilitation of the Duane Arnold Energy Center in Iowa, as signs of a revitalized industry. The implications of this renewed investment go beyond just the plants; they could also help to attract new talent and innovation to the field. Perfetti notes that the nuclear industry is facing a wave of retirements, creating ample opportunities for young professionals. The sector's stability and the rapid promotion prospects make it an attractive career choice. Moreover, the support from venture capitalists and tech giants encourages the development of innovative reactor designs, not just for electricity production but for other applications as well. For proponents like Perfetti, the current landscape offers a unique chance to modernize and expand nuclear energy's capabilities. The involvement of Big Tech could bring much-needed innovation and resources to the sector, potentially overcoming historical barriers and advancing the technology. However, critics like MacFarlane advocate for a cautious approach, emphasizing the need for proven models and established supply chains before fully embracing SMRs. Overall, the renewed interest in nuclear energy, driven by Big Tech's need for reliable power and the push for sustainable solutions, presents a complex but promising situation. While SMRs remain controversial, the broader investment and attention could significantly benefit the industry, potentially reviving plants once slated for decommission and fostering a new era of innovation and growth. Industry insiders and experts agree that the tech sector's interest in nuclear energy is a crucial development. This could not only help decarbonize the grid but also stabilize the energy market, making it a compelling option for tech companies and a reinvigorating force for a struggling industry. As the nuclear sector navigates this resurgence, the balance between innovation and practicality will be key. The potential success of projects like those supported by Microsoft and Amazon could set a new standard for the industry, signaling a bright future for nuclear energy.