February 27, 2025
Acute power shortages and mounting resource adequacy challenges have emerged as existential threats to the AI race. Hyperscale and colocation data centers — among the most energy- intensive digital infrastructures — depend on reliable, 24/7 electricity to sustain AI workloads and cloud computing. However, intermittent, non-dispatchable generation resources dominate the interconnection queues; power constraints stall data center deployment. Nuclear power, with its carbon-free, high-energy output, presents a compelling solution to alleviate the bottleneck. Large tech players and the nuclear industry have forged strategic alliances to move new nuclear projects forward. These partnerships represent a crucial down payment on building sustainable energy infrastructures capable of supporting AI growth. Experts at FTI Consulting have evaluated the collaboration models between these two sectors, including co-location strategies, which have gained momentum despite encountering pushbacks from market participants and regulatory bodies.
