Tag: roadblock

The Future of Datacentres: Nuclear Power on the Rise As we look ahead to 2022, datacentres are set to consume approximately 2% of global energy. Shockingly, by 2026, this number is expected to skyrocket by 4%, reaching around 100 terawatt hours per year. To put this into perspective, Lloyd Jones, Gartner's vice-president analyst, compares this energy consumption to that of a country the size of Japan. Gartner has reported that energy utility clients are expressing concerns about the reliability of datacentres, with many unable to guarantee uninterrupted power supply 24/7, 365 days a year. However, there is growing interest in utilizing nuclear power as a sustainable alternative to fossil fuels for powering datacentres. Major players in the tech industry, such as Alphabet, Google, Microsoft, and Amazon, have started exploring partnerships with nuclear power companies to support their datacentre operations. Alphabet recently signed a deal with Kairos Power to develop small modular nuclear reactors (SMRs) alongside their existing renewable energy sources. This move aims to help Alphabet achieve its net-zero emissions targets. In a similar vein, Microsoft secured a 20-year agreement to purchase electricity from Constellation Energy's Three Mile Island nuclear plant, while Amazon acquired Talen Energy's Cumulus Data Assets datacentre site, strategically located near the Susquehanna Steam Electric Station. While nuclear power offers a reliable, greenhouse gas-free source of electricity, Moody's cautions that SMRs, as a relatively new technology, come with risks. Previous attempts to develop new nuclear capacity in the US have faced challenges such as construction delays and cost overruns, leading to financial setbacks and even utility bankruptcies. Despite the interest in nuclear power for datacentres, the technology is still in the early stages of development and is subject to rigorous regulatory scrutiny. Jones warns that the industry may need to reassess their net-zero commitments due to the operational and cost challenges of SMRs. As the tech sector explores on-site power generation through microgrids, regulatory hurdles are expected to complicate the process. Recent rulings, such as the Federal Energy Regulatory Commission's decision regarding Amazon Web Services and Talen's interconnection service agreement, highlight the obstacles faced by datacentres seeking to bypass traditional electricity transmission methods. Moody's emphasizes the importance of collaboration between utility companies and tech giants to drive the development of SMRs. By working together, these partners can navigate the financial risks associated with SMR projects and advance their shared goals of reducing carbon emissions. While challenges lie ahead in integrating SMRs into datacentre power systems, the potential benefits of nuclear power in the tech industry are clear. With strategic partnerships and a focus on innovation, the future of datacentres could be powered by clean, reliable nuclear energy.

Tag: roadblock

Hyperscalers’ net-zero plans hit roadblock

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