Why Big Tech is turning to nuclear to power its energy-intensive AI ambitions
The OpenAI app icon displayed along with other AI applications on a smartphone.
Jonathan Raa | Nurphoto via Getty Images
Technology giants are turning to nuclear energy to power the energy-intensive data centers needed to train and run the massive artificial intelligence models behind today’s generative AI applications.
Microsoft and Google are among the firms agreeing deals to purchase nuclear power from certain suppliers in the U.S. to bring additional energy capacity online for its data centers.
This week, Google said it would purchase power from Kairos Power, a developer of small modular reactors, to help “deliver on the progress of AI.”
“The grid needs these kinds of clean, reliable sources of energy that can support the build out of these technologies,” Michael Terrell, senior director for energy and climate at Google, said on a call with reporters Monday.
“We feel like nuclear can play an important role in helping to meet our demand, and helping meet our demand cleanly, in a way that’s more around the clock.”
Google said its first nuclear reactor from Kairos Power would be online by 2030, with more reactors going live through 2035.
The tech giant isn’t the only firm looking to nuclear power to realize its AI ambitions. Last month, Microsoft signed a deal with U.S. energy firm Constellation to resurrect a defunct reactor at the Three Mile Island nuclear power plant in Pennsylvania, whose reactor has been dormant for five years.
The Three Mile Island plant was the location of the most serious nuclear meltdown and radiation leak in U.S. history in March 1979, when the loss of water coolant through a faulty valve caused a reactor to overheat.
Why they’re turning to nuclear
Tech companies are under pressure to find energy sources to power data centers — a key piece of infrastructure behind modern-day cloud computing and AI applications.
Many developers rent out servers equipped with GPUs (graphics processing units), which would typically be too expensive to own outright, from so-called cloud “hyperscalers” — such as Amazon, Microsoft and Google.
These tech giants have benefited from a surge of interest in generative AI applications such as OpenAI’s ChatGPT. But that increase in demand has also led to an unintended effect: correspondingly large spikes in the amount of energy required.
Global electricity consumption from data centers, artificial intelligence and the cryptocurrency sector is expected to double from an estimated 460 terawatt-hours (TWh) in 2022 to more than 1,000 TWh in 2026, according to a research report from the International Energy Agency.
Researchers at the University of California, Riverside, published a study in April last year that found ChatGPT consumes 500 milliliters of water for every 10 to 50 prompts, depending on when and where the AI model is deployed. That equates to roughly the amount of water in a standard 16-ounce bottle.
As of August, there were more than 200 million people submitting questions on OpenAI’s popular chatbot ChatGPT every week, according to OpenAI. That’s double the 100 million weekly active users OpenAI reported last November.
Environmental opposition
Nuclear energy isn’t without its controversy. Many climate activists oppose such supplies, citing their hazardous environmental and safety risks, and the fact that they do not offer a genuine source of renewable power.
“Nuclear power is incredibly expensive, hazardous and slow to build,” the climate charity Greenpeace says on its website.
“It is often referred to as ‘clean’ energy because it doesn’t produce carbon dioxide or other greenhouse gases when electricity is generated but the reality is that it isn’t a plausible alternative to renewable energy sources.”
Proponents of nuclear energy, on the other hand, say that it offers a nearly carbon-free form of electricity and is more reliable than renewable sources like solar and wind.
“If it is built and securitized in the right way, I do think nuclear is the future,” Rosanne Kincaid-Smith, chief operating officer of Northern Data Group, a global data center provider, told CNBC at a tech conference in London last week.
“People are scared of nuclear because of the disasters we’ve had in the past. But what’s coming, I just don’t see traditional grids being the sustainable power that’s ongoing in the development of AI,” Kincaid-Smith added.
While Northern Data Group isn’t using nuclear energy — nor is it actively exploring plans to use nuclear as a power source for its AI data centers — the firm does want to “contribute to that conversation because it’s important for the wider ecosystem, the wider economy,” Kincaid-Smith told CNBC.
– CNBC’s Pippa Stevens contributed to this report
Legacy motorcycle maker Royal Enfield has released a teaser ahead of its expected electric motorcycle launch next month at the Milan Motorcycle Show (EICMA).
In the teaser video, seen below, the electric motorcycle is lowered down by a parachute as if being air-dropped. The video is accompanied by a caption teasing the unveiling on November 4th, the start of the Milan Motorcycle Show.
We got an early look at a prototype electric motorcycle from Royal Enfield at the show last year, but this year is expected to see the unveiling of a production version of the bike.
According to local media, the electric motorcycle will be the first of several developed on the same platform, allowing for multiple electric motorcycles to share the same basic structure.
The use of a structural battery pack is similar to other companies such as Harley-Davidson’s LiveWire, which also employs a structural battery pack as the basis of a platform that is used to produce several different electric motorcycle models.
The move is particularly important to the electric motorcycle industry, especially inside of India, due to the company’s major role in the motorcycle industry. Royal Enfield is one of India’s most iconic and oldest motorcycle manufacturers, with a rich history dating back over 120 years. Known for producing sturdy, classic, and retro-styled motorcycles, Royal Enfield has built a strong following both domestically and internationally.
In India, the brand is synonymous with rugged, reliable bikes, which are highly popular for both long-distance touring and everyday commuting. Royal Enfield holds a dominant position in the mid-size motorcycle segment (250-750cc) in India and has cultivated a loyal fan base due to its blend of vintage charm and modern engineering.
Despite Royal Enfield’s popularity for touring bikes, the upcoming electric motorcycle is more likely to focus on commuting roles due to the limited range offered by most affordably-priced electric motorcycles.
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Gogoro announced today the expansion of consumer sales of three of its electric scooters in the Singapore market, marking a major expansion from the company’s commercial fleet-based entry into the market.
Known for its battery-swapping network that fuels its own electric scooters as well as those produced by other major motorbike manufacturers such as Yamaha and Aeon, Gogoro has become the de facto battery-swapping standard for two-wheeled EVs.
The company has expanded its battery-swapping network into several countries across Asia, often beginning with commercial operations. Last year, Gogoro partnered with Food Panda to outfit delivery riders with Gogoro scooters and batteries in Singapore.
Cycle & Carriage Singapore (C&C) served as the importer and distributor, and is now expanding operations to include consumer sales of three electric scooters. The models include the Gogoro VivaMix, Gogoro Premium, and Gogoro SuperSport.
“Together with Cycle & Carriage, we are introducing a new generation of two-wheel urban transportation and refueling in Singapore. Gogoro battery swapping provides a quick, easy and safe electric refueling experience that doesn’t require parking or time to charge,” said Henry Chiang, CEO of Gogoro. “Singapore has taken a proactive approach to accelerating EV adoption and the Singapore LTA’s TR25 electric vehicle charging standard has established a strong set of requirements for Southeast Asia to embrace.”
“Gogoro is Cycle & Carriage’s first foray into the two-wheeler electric mobility business here in Singapore and it highlights our commitment to support the Singapore Green Plan 2030,” said Wilfrid Foo, Managing Director of Cycle & Carriage Singapore. “While battery swapping technology is relatively new here, we believe in the products and our partnership with Gogoro will accelerate the growth.”
Gogoro’s battery-swapping standard has proven popular in its domestic market of Taiwan, where over 1.4 million batteries are in circulation. The company boasts hundreds of millions of battery swaps with hundreds of thousands occurring every day. Battery swap stations outnumber gasoline stations on the island and riders are rarely more than several hundred feet from the closest battery swap kiosk.
The company’s operations are smaller in other countries into which it has expanded, but represent an important launching pad in various regions as Gogoro hopes to replicate its local success on a global level.
Electrek’s Take
The expansion of consumer sales of Gogoro’s scooters in Singapore is particularly interesting to me for two reasons. First of all, EVs make up only around one percent of Singapore’s two-wheeler market, meaning there is a lot of room to replace combustion vehicles.
Secondly, and perhaps more importantly, Singapore’s two-wheeler market is a much smaller portion of the total vehicle landscape than most countries that Gogoro has entered. By comparison, other markets that Gogoro has targeted, such as Taiwan, India, and Indonesia, all have more two-wheelers than cars. But compared to the several motorbike-majority countries that Gogoro has entered, scooters and motorcycles only make up around 15% of the Singapore transportation market, meaning Gogoro is working in areas with much smaller two-wheeler shares. That’s likely good news for Gogoro fans in other countries that hope to have the battery-swapping giant one day make landfall on their own shores. Of course, Singapore’s size and geography likely play a unique role in its selection as a point of expansion for Gogoro, but I still see it as a promising sign for a wider Gogoro rollout.
At the same time though, there’s also the issue of current financial troubles at Gogoro, evidenced by multiple successive quarters of net operating losses in the millions of dollars. But if Gogoro is to turn things around, success on a global level could be a major contributor. The thousands of swapping stations across Taiwan are evidence of the operational success of the system, and now the company needs to demonstrate that it can also be a financial success around the world.
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