Samuel Gibson is the founder and CEO of Hadron Energy — developing micro nuclear reactors for data centers.
Nuclear energy has been receiving a lot of positive attention given the immense benefits and potential to resolve our world’s energy infrastructure challenges. With growing global energy needs, especially related to data centers to fuel the AI boom, we are facing unprecedented demand.
Although nuclear energy presents a compelling solution, there are many hurdles to resolve before successful commercialization. While the need for sustainable energy solutions to curb climate change has never been higher, this begs the question of how our nation will respond to this hike in clean energy needs in the short and long run. A mix of sources will be the key to unlocking our energy-secure future. While nuclear energy offers a viable, scalable and low-carbon solution to meet future energy needs while addressing environmental concerns, short-term hurdles must be addressed for its successful deployment along with other energy sources.
Projected Demand
There are various areas of demand growth that include data centers and AI, manufacturing, and electrification of transportation. The growth in demand for sustainable energy solutions is being driven by a combination of technological advancements, policy support and the urgent need to address climate change.
Data centers and AI account for a tremendous portion of increased electricity needs. The Electric Power Research Institute (EPRI) estimates that data centers could consume up to 9% of U.S. electricity generation by 2030, more than doubling from 4% in 2023. There are many reasons for data centers and AI to use sustainable amounts of energy. From 2010 to 2018, global IP traffic increased tenfold while data center storage capacity grew by 25 times. This trend in increased energy usage is expected to continue, driven by increased internet usage and cloud computing adoption.
Further, data centers have high power requirements. Large data centers with tens of thousands of devices can require over 100MW of power, which is equivalent to powering about 80,000 homes in the United States. Data centers operate 24/7 to maintain uptime for servers, storage systems and cooling equipment.
Reshoring of manufacturing capacity is also expected to significantly increase electricity demand. Semiconductor fabrication plants consume large amounts of power for precision manufacturing processes. EV battery production is particularly energy-intensive. Automation and robotics will also increase the usage of electricity in the foreseeable future.
By 2030, it is predicted that over 10% of the 259 million vehicles in the United States could be electric. This substantial increase in EV usage will have a considerable impact on electricity consumption. To support the growing number of EVs, a massive expansion of charging infrastructure is required. Projections indicate a need for 12.9 million charge ports and about 140,000 DC fast charging ports across the U.S. by 2030. Each of these charging stations will contribute to increased electricity demand.
Our Current Limitations
The energy industry is in desperate need of innovation. Existing power grid infrastructure is not adequately equipped to handle the integration of renewable energy sources. Limited high-voltage direct current powerlines and transmission capacity prevent renewables from being connected to the grid, especially in remote and offshore locations. Significant grid build-out is required to support electrification and connect new renewable energy sources (RES). Transmission and distribution investments need to grow threefold by 2050 to accommodate intermittent RES.
The variability of renewable sources like solar and wind creates instability in the grid, requiring constant balancing to ensure a consistent power supply. A lack of infrastructure for efficient transmission and storage of renewable energy creates bottlenecks in the system. Accurate weather forecasting, particularly for wind conditions, is crucial but challenging for grid operators to maintain stable power. Power pricing in systems with high renewable penetration tends toward zero or negative pricing at certain times, which potentially hinders the ability for new RES installations. The need for firming capacity (gas or battery storage) introduces complex challenges in terms of business viability and market design.
Moving Forward
Our world is in desperate need of 24/7 resilient clean energy. Nuclear energy presents a viable solution for our needs, specifically, microreactors could play a critical role. Microreactors are essentially mini power plants that produce from 1 to 20 megawatts of power that are placed on-site. This is enough electricity for roughly 1,000 to 20,000 homes whereas traditional full-scale reactors are 300-plus megawatts per plant.
The reason microreactors will play a critical role in meeting our clean energy needs is that they can significantly reduce emissions by providing a zero-carbon alternative to fossil fuel plants. Similarly, their compact size enables them to be transportable by truck, ship or aircraft. Further, they are fabricated in factories, reducing construction and deployment times compared to large-scale operations. The ability to deploy on-site will reduce the need for inefficient transmission and distribution infrastructure. Microreactors can provide baseload power to complement intermittent renewable sources given their capability of 24/7 uptime and ability to decentralize the grid.
The current status of nuclear energy deployment has stalled, however. Limitations in workforce development, licensing and regulatory pathways, and supply chain have hindered nuclear energy’s potential. Other forms of energy can fill demand while these engineering challenges are resolved. A healthy grid has a variety of energy infrastructure, including natural gas, carbon capture technology, fossil fuels, wind, solar, geothermal and hydropower. All forms of energy will play a critical role in energy abundance goals, reducing energy costs and the transition to clean sources.
Conclusion
While many challenges remain in achieving our clean energy future, nuclear energy presents itself as a reputable choice for 24/7 resilient and clean energy despite some current limitations. With thousands of years of successful reactor operating history, nuclear power is a safe and clean way to produce electricity. The energy source’s safety, uptime, long refueling cycles and carbon-free baseload power output are attractive attributes. It is critical in this time of transition to become informed about the benefits of nuclear energy. Seeing as the majority of Americans support nuclear energy, now is the time to take action and support the growth in the industry.
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