A Summary of Nuclear-Powered Data Centers

Aaron Lewis, Analyst in Omdia’s Cloud and Data Center shares his thoughts for Alan Howard's analyst opinion on Nuclear powered Data centers. 

The green argument

Nuclear power has far greener energy output than most alternatives, producing less greenhouse gas. Small modular nuclear reactors called SMRs will offer a much cleaner and more reliable energy source for data centers and other industrial applications. Furthermore, the SMRs are space-efficient compared to traditional large-scale nuclear power plant fuel sources such as wood pellets or biodiesel. 

Safety concerns

People commonly misunderstand nuclear power, citing safety concerns. However, the US owns many nuclear-powered ships which have been in operation for almost 70 years without incident, many of which operate near a sizable population center. In addition, the SMRs planned to power large data centers are very similar to those used in these vessels. They have been meticulously engineered to make them safer and are ideal for powering remote sites.

Increasing the useful life of nuclear fuel

Fast-fission technology can use "spent fuel" (previously consumed by a reactor) with up to three centuries of operating lifespan, increasing the useful life of our current nuclear waste. Some SMR and microreactor designs use fast-fission technology estimated to operate for 40 years without refuelling. They also consume a relatively small amount of fuel. This lengthy operational life and a low fuel requirement mean that spent fuel is more manageable as part of a comprehensive waste program.

The commercial picture

SMRs can generate up to 300–500 megawatts (MW) of electric power, while microreactors can produce up to 10MW. These devices make nuclear power more accessible to minor use cases, helping the transition from fossil fuels. The production of SMRs may be commercially viable and available in the US as early as 2027. 

Bottom line

In the future, SMRs could be used for distributed energy generation, replacing aging fossil fuel power plants, and providing high-temperature heat for data centers and various industrial processes. Seeing how the future unfolds for this power source will be intriguing.

Read Alan Howard’s full analyst opinion here.