Nvidia is turning to nuclear energy as it seeks a solution to the rapidly increasing energy needs of data centers in the age of artificial intelligence. The company made its first move in this area by investing in TerraPower, a nuclear energy initiative founded by Bill Gates. The total investment of $650 million will be used for the development of small modular reactor (SMR) projects.

Nvidia is increasing its investments in nuclear energy

Founded in 2006, TerraPower develops safer, more compact and scalable reactor systems, unlike traditional nuclear power plants. The company’s Natrium project, currently underway in the state of Wyoming, is planned as a 345 megawatt reactor.

The reactor is cooled with liquid sodium and has the potential to produce up to 1 gigawatt of energy by storing excess heat in molten salt. However, construction of the nuclear sections of the reactor has not yet begun. Approvals from the US Nuclear Regulatory Commission are awaited and it is stated that this process could extend until 2026.

Nvidia’s move into nuclear energy is not the first in the industry. Oracle has licensed three SMR reactors to power its AI data centers. Microsoft is planning to reactivate Three Mile Island, one of the most famous nuclear power plants in the past.

Google has signed a deal with nuclear energy startup Kairos for seven reactors, while Amazon has invested in three different energy companies, two of which are focused directly on nuclear energy. Meta recently signed a 20-year nuclear energy supply agreement.

The common thread in these investments is the rise of AI systems and the increase in energy consumption in data centers. What do you think about this? Share your thoughts in the comments section below.