With the rapid development of AI technology, especially the rise of large-scale language models and generative AI, technological demand for electricity has exploded. The training and operation of AI models requires a large amount of computing power resources, which directly translates into huge electricity consumption 24/7.

American technology companies are looking for stable and reliable sources of electricity across the US. Some companies have already targeted a key target — nuclear power.

US tech giants scrambling for nuclear power resources have drawn regulatory attention

According to media reports on July 1, about one-third of US nuclear power plant owners are in talks with technology companies to supply electricity for the newly built data center. Among them, Amazon AWS is close to reaching a direct power supply agreement with Constellation Energy, the largest nuclear power plant operator in the US. In March of this year, AWS also bought a nuclear-powered data center in Pennsylvania for $650 million.

This marriage between nuclear power and technology giants has sparked controversy in many parts of the US. On the one hand, the combination of nuclear power and data centers can match the most reliable electricity in the power grid with the richest customers. Furthermore, this new “factory network integration” arrangement means that the construction speed of data centers may be greatly accelerated because there is almost no need for new grid infrastructure. Data centers may also avoid paying transmission and distribution costs, which account for most of the electricity bill.

On the other hand, such power supply agreements also mean that technology companies are not adding new green energy to meet their soaring electricity demand; they are actually transferring existing electricity resources. Data centers may remove stable power generation resources from power grids, exacerbate increasingly serious electricity reliability problems in many parts of the US, and push up electricity prices.

Pennsylvania consumer rights advocate Patrick Cicero expressed concern over Amazon's acquisition deal in the state. He believes that “if large-scale consumers (technology companies) of electricity get priority,” it may cause cost and reliability issues. It's unclear whether the state has regulatory powers to interfere with such transactions.

Considering the huge cost of building new nuclear power plants and potential policy restrictions, some experts believe that in addition to nuclear power, the AI industry may also specialize in natural gas power plants. Natural gas power generation produces less carbon emissions, but unlike renewable energy, it has a more stable power supply, can provide all-weather electricity, and is more economical and practical than building a new nuclear power plant.

Nuclear Power Fuxing Power Company's stock price soared

For companies that own nuclear power plants, this emerging trend could be a turning point.

Over the past 20 years, nuclear power plants have experienced a wave of shutdowns due to excessive construction in the 90s of the last century and competition for wind, solar, and natural gas power generation. But now, technology companies in urgent need of all-weather carbon-free electricity are willing to pay a premium for stable and reliable nuclear power, and nuclear power has returned to the center of the stage.

The stock price of American energy giant Vistra has more than doubled this year. Last month, the company's executives said during an earnings call that the huge demand for electricity in data centers has caused all-weather forward electricity prices in northern Texas in 2026 to rise by about 13% since November last year. Benefiting from this, Vistra expects the adjusted Ebitda to exceed $6 billion in 2026, which is about 24% higher than market expectations.

The United States has 14 nuclear power plants, and Constellation Energy accounts for more than one-fifth of the country's nuclear power generation. It is the largest nuclear power plant owner in the US, and its stock price has risen by more than 70% this year. The company's president and CEO Joseph Dominguez told the media that large areas from Pennsylvania to Illinois are still oversupplied with electricity, leaving room for data centers. He believes that signing contracts with data centers willing to pay a premium can cover the cost of re-licensing, extend the life of power plants by 20 years, and support investments to increase nuclear power production.