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illuminem summarizes for you the essential news of the day. Read the full piece on The Wall Street Journal or enjoy below:
🗞️ Driving the news: Tech giants like Google, Amazon, and Microsoft are investing heavily in nuclear power to meet the growing energy demands of AI-driven data centers while reducing carbon emissions
• Recent deals include supporting small modular reactor (SMR) projects, but these technologies face long development timelines and financial hurdles
• Meanwhile, fossil fuels like natural gas remain essential for bridging the power gap as companies transition
🔭 The context: While the tech industry has led in purchasing renewable energy, AI advancements have dramatically increased electricity consumption, complicating their climate goals
• Traditional nuclear projects in the U.S. have faced delays and cost overruns, but tech firms are betting that SMRs can offer more efficient and quicker alternatives
• Existing reactors and even dormant sites, such as Pennsylvania's Three Mile Island, are being considered for reactivation
🌍 Why it matters for the planet: The surge in data center energy needs threatens tech companies' climate pledges, potentially increasing reliance on fossil fuels
• Nuclear energy could offer a carbon-free solution, but its scalability and reliability in the near term remain uncertain
• Successful deployment of SMRs could reduce the industry's environmental impact, aiding the transition to sustainable power
⏭️ What's next: Although SMRs are not expected to impact energy supplies until the 2030s, ongoing investments aim to establish supply chains and streamline construction
• Companies like Dominion Energy are planning for future demand spikes with a mix of carbon-free and natural gas power sources
• The tech industry must continue balancing sustainability efforts with the urgent need for reliable energy
💬 One quote: "Gas has just been the traditional way that utilities have met demand growth, and so we have to be looking at what are the new ways to do that" — Michael Terrell, Google’s Senior Director for Energy and Climate
📈 One stat: Microsoft's emissions surged 40% from 2020 to mid-2023, and Google's rose nearly 50% from 2019 to 2023
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