Power-hungry AI machines reverse the nuclear trend

After decades of stagnation and gradual phase-outs, nuclear power is experiencing a powerful resurgence in Europe. According to OilPrice.com, one factor in particular is driving the renewed interest: the explosive growth in electricity demand from AI data centres and hyperscalers.

The International Energy Agency (IEA) estimates that data centres, artificial intelligence and cryptocurrency together accounted for 2 percent of global electricity consumption in 2022 — a figure expected to double by 2026. Goldman Sachs Research projects that US data centre demand alone will rise from 31 gigawatts in 2025 to 66 gigawatts in 2027.

Generative AI demand is growing at a 65 percent compound annual growth rate — with inference workloads surging by as much as 122 percent through 2028.

Tech giants commit to nuclear power

The biggest players in the technology industry have not waited for policymakers. Microsoft has signed a 20-year power purchase agreement for 835 megawatts with Constellation Energy to reopen the Three Mile Island facility in Pennsylvania by 2028 — an investment of more than 1.5 billion dollars, backed by one billion dollars in federal loans.

Google, for its part, has struck a deal with Kairos Power to purchase electricity from a fleet of small modular reactors (SMRs), targeting up to 500 megawatts by 2035. Amazon has invested 500 million dollars in reactor developer X-energy and plans to build five gigawatts of new nuclear capacity by 2039.

Meta stands out with the largest single commitment from a hyperscaler to date: a 6.6 gigawatt agreement announced in early 2026, combined with a request for proposals covering between one and four gigawatts of new nuclear capacity.

6.6 GW
Meta's nuclear commitment (2026)
34.7 GW
Microsoft's total clean energy contracts

SMRs: The small reactor with big ambitions

Small modular reactors are described by industry players as the key to making private financing of nuclear power viable in practice. Unlike traditional large-scale reactors, SMRs can be manufactured modularly and deployed closer to energy-intensive data centres.

Bret Kugelmass, founder and CEO of microreactor company Last Energy, argues that small scale and modular packaging are essential to making nuclear power affordable for private businesses and to attracting purely private capital — without government guarantees.

The strategy is often referred to as "Bring Your Own Power": to bypass lengthy grid connection queues — which can stretch over several years — AI companies are building their own dedicated power plants connected directly to data centre campuses.

Former crypto miners change course

A notable feature of the new nuclear landscape is the transition from crypto mining to AI infrastructure. Bitcoin mining companies were early movers in co-locating with stable energy sources, and nuclear power accounted for nearly 9 percent of Bitcoin mining in 2022, according to available figures.

In June 2026, AiOnX acquired a majority stake in crypto mining company Genesis Digital Assets for 500 million dollars, with plans to convert 1.3 gigawatts of crypto data centres to AI and high-performance computing. Max-Hervé George, CEO of AiOnX parent SWI Group, describes power access as the most valuable commodity in digital infrastructure today.

The dark side: The waste problem remains unsolved

Nuclear power's resurgence is unfolding against the backdrop of an unresolved, multi-century problem: what to do with radioactive waste. According to available research data, there are currently no operational final deep geological repositories for high-level nuclear waste anywhere in the world.

Europe has accumulated several million cubic metres of nuclear waste. Around 60,000 tonnes of spent nuclear fuel were held in interim storage across Europe in 2019, with France, Germany and the United Kingdom as the largest producers. Finland's Onkalo facility — located near the Olkiluoto nuclear power plant and excavated into granite 400 to 430 metres below ground — is expected to become the world's first operational permanent repository for spent nuclear fuel, with a planned opening in 2026 at an estimated total cost of five billion euros.

France is planning its Cigéo facility for high- and intermediate-level waste, with estimated costs of between 26 and 37.5 billion euros. Sweden has received approval for a facility at Forsmark, while Germany — which shut down its last commercial reactors in 2023 — does not expect to name a final storage site before 2046 at the earliest.

In 2024, the European Commission identified four key weaknesses in European nuclear waste management: a lack of national policies, insufficient ambition in national programmes, weaknesses in oversight and financing, and outdated cost estimates.

Regulatory tailwinds in Europe

Despite EU-level tensions, the regulatory wind is now blowing in nuclear power's favour, driven by climate targets, energy security concerns following the gas crisis, and structural demand growth. Aline des Cloizeaux from the IAEA's nuclear power division notes that the path to advanced nuclear deployment may very well run through major technology end-users.

For Norwegian investors and the energy market more broadly, it is worth noting that a structural increase in European baseload demand will, over time, affect electricity prices and the competitive landscape relative to Norwegian hydropower and offshore wind. Nuclear power's new role as the preferred partner for hyperscalers may also shape the European energy markets to which Norwegian export capacity is connected.