Big Tech Signs 10 GW of Nuclear Deals to Power AI Data Centers
- AI Energy Demand Analysis Data Centers Grid Capacity
Marin Holt
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- 9 minutes read
- Microsoft, Amazon, Google, and Meta collectively signed contracts for more than 10 GW of nuclear power capacity in the United States over the twelve months through mid-2025
- Microsoft committed to a 20-year PPA with Constellation Energy to restart Three Mile Island Unit 1 (835 MW) in Pennsylvania, targeting a 2028 restart after a 2019 economic closure
- Amazon signed a 1.9 GW nuclear PPA through 2042 with Talen Energy's Susquehanna nuclear plant in Pennsylvania to power AWS data centers in the mid-Atlantic region
- Google partnered with Kairos Power to deploy up to 500 MW of small modular reactor capacity near its data centers by the early 2030s, the first SMR corporate PPA
- Meta issued RFPs for 1 to 4 GW of new nuclear capacity as part of its Prometheus AI cluster power procurement strategy
Microsoft, Amazon, Google, and Meta collectively signed contracts for more than 10 gigawatts of nuclear power capacity in the United States over the past year. The deals represent a fundamental shift in how data centers source electricity: away from grid dependence and toward dedicated, always-on generation that matches the 24/7 load profile of AI computing.
The Deals
Microsoft committed $16 billion to restart the Three Mile Island Unit 1 reactor in Pennsylvania under a 20-year power purchase agreement. The 835 MW plant, shut down in 2019 for economic reasons, targets a 2028 restart. Owner Constellation Energy will refurbish the reactor while Microsoft takes the full output to power its Azure and AI operations.
Amazon is converting the Susquehanna area into an AI campus with a $20 billion investment. Talen Energy will supply Amazon with 1,920 MW of carbon-free nuclear power through 2042. Separately, Amazon led a $500 million financing round for X-energy, which is developing a gas-cooled small modular reactor (SMR) design.
Google signed the first corporate SMR fleet deal in the United States with Kairos Power for 500 MW of capacity. Deployment targets 2030 and beyond. The deal validates SMR technology for commercial-scale data center applications, though no Kairos reactor has yet achieved NRC licensing.
Meta has issued formal requests for proposals to nuclear developers for 1 to 4 GW of new capacity as part of its Prometheus AI cluster power procurement strategy. The Meta RFPs followed Microsoft, Amazon, and Google deal announcements and signal that the largest hyperscalers are now treating nuclear procurement as a standard rather than an outlier.
Why This Matters
U.S. data centers currently draw less than 15 GW from the grid. The construction pipeline adds 140 GW of new data center load. If all planned facilities complete, national peak electricity demand rises nearly 20% above the current 760 GW baseline. That growth dwarfs anything the grid has absorbed in decades: U.S. electricity demand grew at well under 1% compound annual growth rate for the past 20 years.
Grid interconnection delays force the nuclear strategy. New data center projects wait 24 to 72 months for utility service in congested markets like Northern Virginia and Texas. Dedicated nuclear generation bypasses the interconnection queue entirely.
Approximately 70% of the U.S. power grid was built between the 1950s and 1970s and approaches end-of-life. Adding 140 GW of concentrated data center load onto aging transmission infrastructure creates reliability risks that on-site or near-site nuclear directly addresses.
Grid and Market Impact
The World Resources Institute projects 100+ GW of data center demand coming online between 2024 and 2035, roughly 10 times New York City 2023 summer peak. Utility five-year summer peak demand forecasts jumped from 38 GW in 2023 to 128 GW in 2024, a 237% increase in a single planning cycle.
EPRI estimates data centers will consume 4.6% to 9.1% of all U.S. electricity by 2030. Lawrence Berkeley National Laboratory projects 325 to 580 TWh of annual data center consumption by the same date. The wide range reflects uncertainty about AI adoption rates, but even the low end represents a transformative increase.
PJM Interconnection, serving 67 million people across 13 states, prioritized large-load integration for 2026. States are responding with disclosure requirements: Virginia HB 1601 targets substations serving 100+ MW facilities, Georgia requires economic development reports for projects over 115 MW, and Oregon created a separate utility category for 20+ MW data center loads.
Power-Quality Implications
Large-scale AI data centers driving this nuclear procurement present K-factor 13-20 transformer loads: server power supplies inject triplen harmonics with 3rd order at 60% of fundamental, accumulating neutral current to 173% of phase conductors per IEC 61000-4-30 neutral compliance rules. IEEE C57.110-2018 mandates K-13 or K-20 transformers with 25-30% derating. The 10 GW of nuclear commitments bypass PJM and WECC interconnection queues (PJM backlog at 47 GW per 2025 data) but still require dedicated 138-345 kV transmission builds subject to FERC Order 2023 interconnection study timelines of 4 to 6 years.
Timeline Realities
The nuclear deals face long lead times. Microsoft Three Mile Island restart targets 2028. Google Kairos SMR fleet targets 2030 at earliest. Most announced nuclear projects will not deliver electricity before the mid-2030s. In the interim, natural gas remains the dispatchable backstop, and renewables currently supply 27% of data center electricity globally, with projections for 22% annual growth through 2030.
OpenAI and SoftBank Project Stargate, at $500 billion through 2029, announced only one small facility for 2025 completion. The gap between announced investment and operational capacity defines the challenge: AI-driven corporate investments drove over one-third of U.S. GDP growth in the first nine months of 2025, but the power infrastructure lags years behind the computing buildout.
Critical Perspective
Microsoft $16 billion commitment for Three Mile Island restart is significant. However, Constellation Energy past struggles with nuclear plant economics, as seen with the original Three Mile Island shutdown, warrant scrutiny. The Shoreham Nuclear Power Plant faced immense public opposition and cost overruns, ultimately never operating commercially. Will these massive, long-term nuclear commitments truly insulate Big Tech from unforeseen regulatory hurdles and escalating operational expenses? The deal that already has operating capacity (Microsoft + Three Mile Island restart) is the only one where 2028 timing is credible; SMR-based deals (Google + Kairos, Amazon + X-energy) all hinge on NRC certifications that the agency has not committed to in the announced timeframe.
Sources
- IEEE Spectrum: nuclear-powered data center
- World Resources Institute: US data centers electricity demand
