Solving AI’s Power Problem with Nuclear Energy. - Gartner

Global enterprises are facing rapidly increasing electricity consumption driven by AI and generative AI, which threatens to disrupt energy availability and lead to data center power shortages.

Small modular nuclear reactors are emerging as a viable long-term solution to this looming power crisis. Gartner predicts the first SMR-powered data centers will become operational by 2030, using sustainable power fully independent of utility power distribution grids.

We spoke with Bob Johnson, VP Analyst at Gartner, to understand the role that SMRs will play in addressing the power problem and what organizations can do now to get ahead of the game.

Q. What role will SMRs play in future energy generation to solve the power crisis?

A: Current demand looks set to exceed the ability of utility providers to expand their capacity fast enough to support the exponential growth of GenAI. Nuclear energy, specifically SMRs, provides a viable answer to the question of “What to do when electricity demand exceeds supply?”

Gartner estimates the power required for data centers to run incremental AI-optimized servers will reach 500 terawatt-hours per year in 2027, which is 2.6 times the level in 2023.

SMRs ensure independence from grid power fluctuations by providing dedicated on-site power for large data centers. These advanced nuclear fission reactors offer reliable, uninterrupted power without emissions, making them a key solution for transitioning from fossil fuels.

Designed with a wide range of power-generating capacities, SMRs have components that can be factory-made and transported for assembly on-site. This offers data centers location flexibility without reliance on commercial power availability.

Despite being years away from regulatory approvals and construction, SMRs represent a very real long-term solution to power availability issues. Government actions promoting SMRs will accelerate their development, certification and availability for data center operations.

Q. Why are SMRs a better long-term solution over renewable resources?

A: Data centers require 24/7 power availability, which renewable power such as wind or solar cannot provide without some form of alternative supply during periods when not generating power.

This is where nuclear energy comes in, offering reliable, low-carbon stability at predictable prices. SMRs promise these benefits, with the advantages of shorter approval and construction times, lower build and operating costs, and more siting options.

SMRs have the potential to contribute significantly to improving energy security and managing energy costs, while eliminating energy purchase emissions and enterprise carbon footprint — especially for power hungry and energy intensive industries like data centers.

Diversifying energy sources with SMRs will provide additional resilience against potential power outages and capacity issues. Unlike traditional nuclear power plants, SMRs are being designed to significantly lower costs while increasing safety, versatility, and efficient reuse and disposal of fuel.

To learn more, visit: www.gartner.com