AWS has invested $650 million to acquire Talen Energy's Cumulus Data Assets, a 960-megawatt nuclear-powered data centre located at Talen's Susquehanna, Pennsylvania, nuclear plant. Additional data centres are planned, pending approval by the Nuclear Regulatory Agency. Furthermore, AWS will benefit from a 10-year Power Purchase Agreement (PPA) from the Susquehanna site, granting access to nuclear energy.

Software King of the World Microsoft inked a deal with Constellation allowing Microsoft to source up to 35 per cent of its power from nuclear energy, supplementing its existing solar and wind energy purchases for Microsoft's Boydton, Virginia, data centre. Additionally, Microsoft has secured a nuclear carbon credits agreement with Ontario Power Generation for its Canadian operations.

Numerous agreements are being negotiated with existing nuclear power providers, enabling hyperscalars (large-scale data centres) to access energy or utilise small modular nuclear reactors (SMRs) with reduced carbon footprints, which will be annexed to existing nuclear power plants.

Companies such as Nucor, Oklo, Rolls-Royce SMR, Westinghouse Electric, Moltex Energy, Terrestrial Energy, General Electric, Hitachi Nuclear Energy, and X-energy are developing SMRs to meet the burgeoning demands of AI data centres.

Nuclear SMRs will not be operational until 2030, but there is an urgent need for sustainable, carbon-free electricity, wind, and solar power alternatives. Because electric grids are struggling to keep up with demand, even as data centre companies are planning huge new additions to their fleets to power generative AI applications.

Northbridge Energy Partners principal Peter Kelly-Detwiler said Google, Amazon, and Microsoft are looking at on-site nuclear-based SMRs, and even fusion reactors.

He said: "This global arms race for power arose quickly, and it's like nothing we have ever seen before."