Big Tech Bets on Nuclear Power to Keep AI Data Centers Running

Major technology companies are signing deals with nuclear energy firms to secure electricity for their AI data centers. Microsoft, Google, Amazon, and Meta are among the companies putting financial weight behind next-generation nuclear projects, according to Reuters.

The move reflects a shift in how Big Tech views energy. For years, nuclear startups struggled to find buyers willing to commit to long-term power contracts. AI is changing that. Data centers running large AI models consume enormous amounts of electricity, and the grid cannot always keep up.

The global AI infrastructure buildout is estimated to require up to $7 trillion in investment for data center expansions, driven by the need for compute power, energy, and cooling. Cisco's president said the tech industry is "grossly underestimating" the amount of infrastructure needed for AI.

Meta signed a new deal to spend an additional $21 billion with CoreWeave for AI cloud capacity through December 2032, building on a prior $14.2 billion commitment. The expanded agreement will use Nvidia's upcoming Rubin systems in dedicated data centers.

Long-duration energy storage solutions, including iron-air batteries, are also being developed to support AI data centers amid grid constraints and the integration of renewable energy.

Cities and states are pushing back. Local governments are increasingly challenging data center projects over concerns about electricity demand, water use, and quality-of-life impacts on surrounding communities.

TSMC's record first-quarter revenue of $35.7 billion, reported on April 10, 2026, reinforced that AI chip demand remains strong. The company plans $52 billion to $56 billion in capital expenditures for 2026, much of it tied to expanding advanced chip production.

Startups raised approximately $297 billion globally in the first quarter of 2026, the highest quarterly total on record. Most of the large deals were tied to AI infrastructure.