Karsten Wenzlaff, Advisor
August 26th, 2025
Karsten Wenzlaff is a Crowdfunding and Fintech Expert from Germany. He is Secretary-General of Digit[...]
Will Nuclear Fuel the Data-Driven Future?
AI Energy | Sep 30, 2024
Freepik AI
AI Data Centers' Growing Power Needs and the Rise of Nuclear Energy
According to the International Energy Agency (IEA), data centre workloads climbed by 340% between 2015 and 2022 as giant tech companies like Amazon, Google, and Microsoft doubled their power usage between 2017 and 2021, reaching 72 TWh. Artificial intelligence (AI) is growing at an exponential rate because AI operations require more large and complex data centres, resulting in unprecedented energy demands and a renaissance in nuclear power that can deliver continuous, low-carbon electricity. In Ireland, data centres consumed 18% of all electricity in 2022; if power generating capacity doesn't increase, that percentage might rise to 28% by 2031.
Globally, financial institutions have acknowledged the importance of nuclear power, with 14 major banks agreeing to assist the COP28 climate objective of doubling nuclear energy capacity by 2050.
See: Rising AI Energy Use: A Call for Sustainable Innovation
The Department of Energy (DOE) in the U.S. recently approved a $1.5 billion loan to reactivate the Holtec Palisades nuclear reactor in Michigan. Similarily, Microsoft and Constellation Energy announced that they will be resuming the reactor at Three Mile Island in Pennsylvania by 2028 through a $1.6 billion power purchase deal.
OpenAI proposed building 5 gigawatt data centres throughout the United States with each requiring the power supplied by 5 nuclear power plants. Google is now looking at nuclear power possibilities.
Small Modular Reactors (SMRs)
Startups are innovating too. SMRs are transformative because they provide greater flexibility, scalability, and faster deployment than conventional reactors. As reported by Axios, there are several prominent initiatives on the go:
- TerraPower is building a fast reactor in Wyoming that uses sodium cooling (with Bill Gate's support)
- X-energy plans to use SMRs to power a Texas Dow industrial facility by 2030.
- Oklo is a small nuclear reactor development project backed by OpenAI CEO Sam Altmam with plans for deployment in Idaho.
By supplying data centres and industrial sites with localized electricity, these SMRs can increase productivity and satisfy rising demand.
AI Efficiency and Grid Management
Despite AI consuming tons of energy, it can be used to optimize the energy efficiency of complicated power networks with improved AI forecasting models that balance supply and demand, especially with fluctuating renewable energy sources like solar and wind.
See: AI Leaders and White House Discuss Energy Infrastructure
As an example, Google's neural network model for wind forecasting has increased output accuracy by up to 36 hours ahead of schedule, resulting in a 20% increase in the wind power's financial worth. These kinds of advancements allow energy suppliers to maximize computational loads, sell electricity ahead of time, and encourage more investment in renewable energy sources.
Investor Opportunities
The convergence of AI, data center growth, and nuclear power opens multiple avenues for investors:
- The return of nuclear energy and innovations like SMRs is creating energy infrastructure investment opportunities consistent with Environmental, Social, and Governance (ESG) principles, promoting environmental sustainability and dependable energy supply. However there are regulatory challenges, high starting costs and examples of past project delays (i.e., the Vogtle plant) all pose hazards. Investors must carefully evaluate policy and cost structures.
- Investing in solutions that increase data centre energy efficiency (or AI capabilities) is interesting. Companies that provide AI solutions for energy management, predictive maintenance, and smart grid operations will benefit from the need to improve data centre energy use.
See: How Carbon Pricing Impacts Fintech and Investment Strategies
- Carbon markets and sustainable finance instruments like green bonds and renewable energy certificates are becoming more and more important as the world moves closer to net-zero emissions. These developments are supported by the low carbon footprint of nuclear energy, which presents potential for investments in carbon credits and environmentally friendly financing options.
The Role of Fintech in the Energy Transition
Fintech will play a key role in overhauling the energy landscape by offering innovation solutions for funding, managing, and optimizing clean energy investments.
- By facilitating investments in green finance products, fintech platforms will help institutional and individual investors fund nuclear and renewable energy projects more easily and align capital flows with ESG objectives.
- Blockchain is being evaluated for grid management and transparent energy trading. Peer-to-peer energy trading and real-time renewable tracking is being made possible by fintech solutions which will plug into AI managed data services looking for optimization.
See: Sustainable Business and The Regenerative Future
- Crowdfunding and DeFI platforms are providing sustainable energy finance, for tech like SMRs, democratizing both funding and access to sustainable energy projects and solutions.
Outlook
The intersection of AI, nuclear power, and sustainable finance can help meet the world's rising energy demands while also meeting it's climate and sustainability goals. With AI driving energy efficiency and nuclear delivering constant, clean electricity, investors and fintech can have a key role in transitioning towards a sustainable and lucrative energy future.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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