AI and Nuclear Energy: A New Frontier
Artificial intelligence (AI) is being hailed as the most significant technological breakthrough since the internet, with implications across sectors like healthcare, education, and defense. Palantir Technologies (PLTR) has seen its stock rise approximately 1,800% since its 2020 IPO. Treasury Secretary Scott Bessent indicated that productivity gains from the current AI boom may materialize as early as Q1 2024. In terms of energy consumption, AI data centers’ share of total commercial electricity demand is projected to jump from 3% in 2022 to 12% by 2027, according to the Energy Information Administration (EIA).
As the U.S. and China vie for dominance in AI, the U.S. is leading in technology but lacks in energy resources, relying on various energy forms, including nuclear power. The Trump Administration’s support for small modular reactors (SMRs) highlights nuclear energy’s potential, offering off-grid capabilities and cleaner energy. Recently, nuclear stocks have surged following legislation supporting new reactor deployments, with Centrus Energy Corp. (LEU) receiving a $900 million contract to develop next-gen fuel, while Constellation Energy (CEG) is set to restart the Three Mile Island nuclear plant to power Microsoft (MSFT) data centers.
