AI hyperscalers shift to nuclear and gas power for data center electricity

Microsoft, Google, Amazon and Meta have each secured nuclear power agreements to supply electricity for their AI data centres, amounting to roughly 10 gigawatts of capacity. Microsoft signed a $16 billion, 20‑year deal to restart the former Three Mile Island Unit 1, targeting operation in late 2027. Google committed up to 500 MW from a fleet of small modular reactors, aiming for its first unit by 2030. Amazon expanded its off‑take from the Susquehanna plant to nearly 2 GW through 2042 and led a $700 million investment in X‑energy’s SMR project. Meta’s portfolio spans about 6.6 GW across several reactor technologies.

The shift is driven by grid bottlenecks and soaring wholesale power prices, with interconnection queues exceeding 2,600 GW and wait times of up to five years. In parallel, Meta withdrew from the RE100 clean‑energy initiative after committing to more than seven gigawatts of new natural‑gas capacity for its Hyperion AI campus in Louisiana, a move that made it unable to meet RE100’s renewable‑only criteria. The company continues to claim 100 % clean energy through certificate purchases, while other firms such as Microsoft have also signed gas deals, highlighting growing tensions over energy sourcing in the AI industry.