Tech giants pour billions into nuclear reactors to power AI data centers

Major technology companies including Microsoft, Amazon and Google are committing billions of dollars to develop small modular reactors (SMRs) as a dedicated power source for AI‑intensive data centers. AI workloads now require 80 MW or more per facility, far exceeding the capacity of existing grids and leading to long interconnection delays. SMRs are promoted as compact, safer and cheaper nuclear solutions that can deliver continuous clean energy without relying on weather conditions.

In parallel, Colorado‑based Crusade (Crusoe) has partnered with nuclear‑reactor maker Aalo Atomics to build the world’s first nuclear‑powered AI factory. The collaboration will install an Aalo‑X 10 MW reactor to run a Crusoe Spark modular data center at Idaho National Laboratory as a proof‑of‑concept in 2027, with plans to scale to 50 MW XMR plants at additional sites by the end of 2029.