The future of energy: why nuclear power is essential for AI and climate goals
As the world accelerates toward a sustainable energy future, nuclear power has emerged as a crucial player in the global energy transition. Today, with rising energy demands from industries like AI and tech, nuclear power stands out as a critical solution—offering both zero-carbon output and unmatched efficiency.
The power of nuclear energy vs. traditional fuels
Nuclear energy provides a unique advantage with its incredible energy density. A single kilogram of enriched uranium can generate as much energy as 10,000 tons of coal. This efficiency not only reduces the volume of fuel needed but also eliminates carbon emissions. Instead of burning fossil fuels, nuclear reactors use a fission process that produces clean heat, generating electricity without releasing pollutants. In fact, the only emission from a nuclear power plant is water vapor. Compared to coal plants, which have contributed to an estimated 460,000 deaths in the U.S. alone over the past two decades due to air pollution, nuclear power is a far cleaner alternative.
This environmental advantage has pushed governments around the world—from Japan to the United States—to include nuclear energy in their national energy strategies. In tandem with renewables, nuclear power is viewed as essential for achieving low-carbon energy grids and meeting future power demands.
Big tech turns to nuclear for AI power demands
In recent years, leading tech companies have recognised nuclear energy’s potential to support the growing needs of artificial intelligence (AI) and data centers. With the energy-intensive nature of AI computations, companies like Amazon, Microsoft, and Meta have sought out nuclear as a stable, round-the-clock power source. For example, Amazon recently acquired a data center near a nuclear power plant in the U.S., while Microsoft has committed to financing the reopening of a nuclear plant in New York, securing a 20-year energy supply for its data centers.
Meta’s head of AI emphasised nuclear power as the future of data center energy, underscoring the necessity for reliable, non-carbon energy to fuel tech advancements without exacerbating climate issues. With nuclear’s capacity to deliver consistent and green electricity, it has become one of the best long-term investments to support AI, electric vehicles, and other high-growth sectors over the coming decade.
Safety and waste: addressing common misconceptions
Nuclear energy’s legacy includes public safety concerns that have contributed to its historically cautious adoption. However, when examining the impact of fossil fuels on health, nuclear power proves to be far safer. While coal-fired plants contribute to millions of premature deaths globally, nuclear accidents—though tragic—have resulted in far fewer fatalities over time. The risk is continually minimised as technologies advance and operational practices improve, mirroring safety improvements in air travel following accidents.
Regarding waste, nuclear produces a surprisingly small amount. Thanks to the high energy density of uranium, the total volume of nuclear waste remains relatively minor. For example, all of the nuclear waste ever produced in the U.S. could fit on a single football field if properly contained. Solutions like encapsulating waste in concrete have proven effective, ensuring safe storage for the long term.
A forward-thinking investment
In 2018, investments in key companies—Cameco, Yellow Cake, and Sprott Physical Uranium—were made, anticipating the growing role of nuclear power in sustainable energy. These holdings have since yielded impressive returns, as both public sentiment and investor interest around nuclear energy have shifted positively. Today, nuclear power is increasingly recognised by global investors and banks as essential in combating climate change, making it a highly strategic sector to watch.
As the world moves toward a sustainable energy future, nuclear power is not just an alternative; it’s a cornerstone. For those seeking future-proof, eco-conscious investments, nuclear energy represents a compelling choice that supports AI, addresses climate goals, and offers secure, scalable power. At GPI Europe, we’re closely monitoring these trends to ensure our clients are informed about opportunities in this transformative sector.
Finally, we want to thank Dominion for these insights!
