TREND 4
Nuclear energy

The surge in AI is driving nuclear resurgence

GENERATIVE AI | CYBERSECURITY | ROBOTICS | NUCLEAR ENERGY | SUPPLY CHAIN

TREND 4

Nuclear energy

The surge in AI is driving nuclear resurgence

The energy sector is transforming at an unprecedented pace, driven by mounting pressure to respond to the climate crisis and supported by innovation across sectors, from renewables and biofuels to low-carbon hydrogen and beyond. Nuclear energy stands out as a focal point for 2025, having been propelled up the business agenda by the urgent need for clean, dependable, and controllable power that can support the rising energy demands of AI and other high-energy technologies.

Key activities in this space:

Google announced plans to purchase electricity generated using SMRS
Meta has announced a planned RFI for 1-4 GW of new nuclear
Amazon has signed agreements to support the development of nuclear energy projects

Rising global energy demand: Nuclear energy is a top tech trend in 2025

Global energy demand is rising rapidly. The US Energy Information Administration’s (EIA) 2023 International Energy Outlook predicts (with some uncertainty) it will increase by 30-76% by 2050, with most of that demand met by zero-carbon technologies, including nuclear. Further, net-zero targets and climate pledges are putting pressure on energy and utilities organizations to decarbonize power generation while expanding their generation capacity. SMRs offer scalable, cost effective, and quicker-to-build alternatives to traditional reactors.

Organizations recognize nuclear energy’s potential to provide safe and stable, low-carbon power. Moreover, a global survey conducted in 2023 found that 46% of the respondents supported the use of nuclear energy. Nuclear power generated by new plants has been rising steadily since 2015, with over 60 new reactors across 15 countries under construction globally at the time of writing. These projects will increase global nuclear power capacity by over 15% from current levels.

Expected adoption for 2025

In 2025, we believe that SMR and AMR technology development will accelerate in 2025. Large-scale investments are expected to further accelerate innovation in reactor technology and waste management, as the tech sector acknowledges that renewables alone cannot sustain its energy demands. 2025 will be a critical year for nuclear energy as we wait to see whether recent hyperscaler projects announced in the US take off. even as SMR technology gains credibility, scaled adoption will prove challenging. An important question is, beyond the hyperscalers, will there be broadscale acceptance by regional and local governments, and by the public?

Is the risk of increased energy consumption impacting your adoption of AI and generative AI?

Yes: This is a topic of concern and discussion.
No: This is not a priority for me.
Unsure: I haven't thought about this.

Key nuclear technologies that are poised for strong growth

SMRs, based on proven tech and light water reactors

Offer safe, scalable, and more cost-effective alternatives to traditional reactors, SMRs are based upon proven commercial nuclear technology and/or naval reactor technology, and a 70+ year operational history that could speed up the regulatory approval process. Furthermore, the segment boasts an established fuel supply chain and does not require ultra-heavy forging capacity.

Advanced modular reactors (AMRs)

Also known as Generation IV reactors, these use innovative fuels, coolants, and technology to generate low-carbon electricity and/or heat. They are intrinsically safe and can be quite compact, even portable, allowing for a multitude of use cases. However, this technology and supply chain are still in development.

Fusion energy breakthroughs

The coming years may witness fusion energy projects such as the International Thermonuclear Experimental Reactor (ITER) and startups such as Helion Energy aiming toward producing limitless supplies of clean power.

SMRs will lead the way for new nuclear as they are poised for rapid industrialization

Advantages of SMRs

Reduced capital cost
Reduced time to build
Greater siting ﬂexibility
Multiple use cases

Download the full report to check:

• What organizations and investors are saying • Key barriers to adoption at scale

Download the full report