Top 6 Ways Leading Nations Are Using Nuclear Energy to Power AI and Data Centers
The rapid rise of artificial intelligence (AI) workloads and hyperscale data centers is fundamentally reshaping global energy strategies. As the digital economy accelerates, a critical convergence is emerging between AI growth, large-scale data processing demands, and nuclear power investments. To meet these unprecedented power requirements, leading nations are strategically turning to nuclear energy as a long-term, resilient solution. The exponential increase in electricity consumption, primarily driven by AI and cloud computing, is placing immense strain on existing grid infrastructure. Goldman Sachs Research projects that global data center power demand will surge by 165% by 2030 compared to 2023. The International Energy Agency (IEA) estimates that data centers will consume around 945 terawatt-hours (TWh) annually by 2030—equivalent to Japan’s total current electricity use. AI-optimized data centers alone are expected to see power demand more than quadruple within the same period.
This sharp rise in demand is triggering a global pivot toward large-scale investments in power generation and transmission infrastructure. Nuclear energy is increasingly positioned as the preferred solution due to its ability to deliver constant, clean, and ultra-reliable baseload power—crucial for data centers that require uptime of 99.999% or higher. With a capacity factor exceeding 92.5% and virtually zero operational emissions, nuclear power aligns with the net-zero carbon commitments of both governments and technology companies. Among emerging technologies, Small Modular Reactors (SMRs), typically under 300 MW, are gaining traction for their scalability, faster deployment, and lower construction costs. SMRs offer the potential for dedicated, carbon-free power solutions for data centers, with full-scale commercialization expected around 2030.
This convergence is giving rise to a new high-value segment in the nuclear energy market, driven by direct enterprise demand from hyperscale tech firms and attracting new flows of investment capital into the nuclear sector. Below are the six leading nations that are strategically leveraging nuclear energy to power the future of AI and data center infrastructure.
1. United States
The United States is emerging as a global leader in integrating nuclear energy into the infrastructure required to support artificial intelligence and data center growth. Backed by robust federal policy, world-class technology firms, and a mature nuclear industry, the country is actively positioning itself at the intersection of digital innovation and clean, high-capacity power.
In July 2025, the White House released the “Winning the AI Race: America’s AI Action Plan,” outlining over 90 federal policy actions to accelerate AI deployment. Among these is the push to expedite permitting processes for data center construction, signaling a clear federal commitment to digital infrastructure expansion. This is complemented by significant private investment, most notably the Stargate Initiative launched in January 2025, which brings together $100 billion in private capital—set to scale to $500 billion over four years—with major stakeholders including OpenAI, SoftBank, Oracle, and Microsoft.
The United States currently hosts 5,426 operational data centers as of March 2025, the highest number globally. These centers consumed 17 GW of power in 2022, with forecasts projecting a surge to 130 GW—equivalent to 1,050 TWh—by 2030, representing nearly 12% of the nation’s total annual electricity demand. Virginia alone, with over 300 data centers, contributes approximately $9.1 billion annually to the state’s economy, underscoring the sector’s growing economic significance.
To meet this rising demand, nuclear energy is gaining renewed strategic importance. With 94 operable reactors totaling 96,952 MWe, nuclear accounted for 19% of total electricity generation in 2023. Under President Trump’s administration, a new target has been set to quadruple nuclear capacity to 400 GWe by 2050. The Department of Energy is prioritizing advanced nuclear technologies, including small modular reactors (SMRs), with the first commercial deployments expected in the late 2020s and early 2030s.
Executive Orders issued in May 2025 reflect this momentum, directing increased federal funding toward advanced reactor development and supporting power uprates for existing plants. These actions have catalyzed significant private-sector engagement. Microsoft has signed a 20-year agreement with Constellation to procure electricity from the reactivated Three Mile Island reactor (800 MW). Amazon, through AWS, has announced over $20 billion in investment to convert the same site into a state-of-the-art AI-ready data center campus powered entirely by carbon-free nuclear energy. Google is advancing plans to bring a 500 MW small modular reactor online by 2030 in partnership with Kairos Power.
2. China
China is rapidly advancing the integration of artificial intelligence, hyperscale data centers, and nuclear energy as part of its broader push for technological self-reliance and energy security. With state-led investments and an assertive clean energy agenda, the country is positioning itself as a global powerhouse in digital infrastructure backed by carbon-free nuclear power.
In 2025, China's investment in AI is projected to reach between $84 billion and $98 billion—an increase of 48% over 2024 levels—with approximately $56 billion coming from government sources. These investments are part of a national strategy that prioritizes technological sovereignty and global competitiveness, particularly in AI and supercomputing capabilities.
China had 449 data centers by the end of 2023, the largest concentration in the Asia-Pacific region. According to the International Energy Agency, China accounted for 25% of global data center electricity consumption in 2024, second only to the United States. Power consumption by data centers is expected to grow from 100–200 TWh in 2025 to as much as 600 TWh by 2030, reflecting the country's aggressive digital infrastructure buildout.
To support this massive energy demand, China is executing one of the world’s most ambitious nuclear expansion programs. As of the end of 2024, the country had 102 reactors either operational, under construction, or approved, with a combined installed capacity of 113 GW. In April 2025, China approved the construction of 10 additional nuclear reactors across five major sites, with a total investment exceeding 200 billion yuan ($27.45 billion). China's nuclear generation capacity is expected to reach 65 GW by the end of 2025, grow to 200 GW by 2030, and scale further to 400–500 GW by 2050.
China is also leading in next-generation nuclear innovation. The world’s first commercial fourth-generation high-temperature gas-cooled reactor became operational in 2023, and construction of the Linglong One small modular reactor (SMR) is scheduled for completion by 2026. The introduction of SMRs after 2030 is expected to significantly expand the role of nuclear in powering AI and data infrastructure. By 2035, the combined contribution of renewables and nuclear is projected to account for nearly 60% of the electricity used by China’s data centers, marking a substantial decline in coal reliance and reinforcing the shift to a cleaner digital economy.
3. France
France is positioning itself as a European leader in sustainable artificial intelligence by leveraging its long-standing nuclear infrastructure to power the next wave of data and AI innovation. With strong government backing, advanced reactor capabilities, and a national emphasis on decarbonized growth, France offers a compelling model for aligning digital expansion with clean energy strategy.
As part of the France 2030 investment plan, the country has committed over €109 billion to AI infrastructure development. A core focus is establishing France as one of the world’s greenest AI leaders by capitalizing on its abundant, low-carbon electricity—over 70% of which is supplied by nuclear power. This alignment between digital and energy policy is enabling France to attract both domestic and international investment in high-performance computing and AI-intensive applications.
France ranks third in Europe in terms of data center count, with total capacity reaching 566 MW in 2023. This figure is expected to triple to 1.8 GW by 2033, driven by the accelerating demands of big data, IoT, AI, and cloud services. Data center investments in 2023 alone totaled €879 million ($944 million), underscoring investor confidence in the country’s energy-secure digital ecosystem.
France’s mature nuclear fleet is undergoing life extension and modernization, ensuring reliability and stable baseload supply. In February 2022, President Emmanuel Macron announced a "nuclear renaissance," which includes the construction of six new EPR2 reactors, with an option to build eight more. Construction is expected to begin in 2027. In parallel, France continues to invest in small modular reactor (SMR) research and innovation, aligning with global trends in flexible nuclear deployment.
France's appeal as a destination for digital infrastructure is strengthened by the affordability and stability of its nuclear-derived electricity. The government is currently considering legislation to designate data centers as "projects of major national interest," enabling streamlined permitting and accelerated development timelines.
A notable example of this convergence is the collaboration between NVIDIA and French AI startup Mistral AI, which will establish Europe’s largest AI campus in the Paris region. The facility is projected to reach 1.4 GW in capacity, directly benefiting from France’s decarbonized power supply.
4. United Kingdom
The United Kingdom is taking strategic steps to position itself as a global AI superpower, with a clear recognition that reliable, scalable, and clean energy—particularly from nuclear sources—will be essential to sustaining this vision. With government-backed initiatives spanning AI infrastructure, nuclear capacity expansion, and digital planning reform, the UK is aligning policy and investment to future-proof its data-driven economy.
In January 2025, the UK government released the AI Opportunities Action Plan, which outlines 50 strategic recommendations aimed at mainstreaming AI across critical sectors. Among its core objectives is a twenty-fold expansion of government-owned processing capabilities by 2030, including substantial investment in AI-optimized supercomputing infrastructure.
As of March 2024, the UK had the highest number of data centers in Europe. The UK data center market was valued at USD 7.89 billion in 2023 and is projected to grow to USD 14.43 billion by 2030, at a CAGR of 9.0%. The country currently hosts 512 data center facilities with a combined power capacity of 1,139 MW, alongside 11 additional centers under construction. This growth reflects increasing demand from AI, cloud services, and digital enterprise sectors.
On the energy front, the UK’s existing nuclear fleet includes five operational power stations with a combined capacity of 5.9 GW. The British government has set a clear target to expand nuclear capacity to 24 GW by 2050, aiming to supply approximately 25% of the country’s future electricity demand. This commitment is reinforced by the forthcoming National Policy Statement (NPS EN-7), expected by late 2025, which will broaden the regulatory scope to include small modular reactors (SMRs) and advanced modular reactors (AMRs), enabling a new generation of flexible, scalable nuclear infrastructure.
To support the dual growth of AI and clean power, the UK is launching dedicated “AI Growth Zones” (AIGZs) designed to accelerate planning approvals for data center developments and improve access to the national energy grid. These zones are part of a broader effort to reduce friction in siting and powering hyperscale digital infrastructure. In parallel, a new AI Energy Council, jointly chaired by the Secretaries of Science and Energy, is being established to coordinate with industry and forecast long-term energy demands for AI applications.
5. South Korea
As a global leader in manufacturing, semiconductors, and digital innovation, South Korea is aggressively positioning itself at the forefront of the industrial AI revolution. With government-driven investment in AI and a parallel commitment to nuclear power expansion, South Korea is reinforcing its technological and energy resilience to meet future demands.
The Ministry of Trade, Industry and Energy has announced a 480 billion won (approximately USD 349 million) investment plan for 2025, focused on strengthening the country’s competitiveness in AI-powered industries. This initiative includes support for smart factories, advanced AI chips, autonomous vehicle platforms, and next-generation nuclear technology—underscoring the government’s integrated view of digital and energy innovation. The strategy also aligns with South Korea’s ambition to maintain a “super gap” in core technologies such as semiconductors, where AI and energy security are intertwined.
South Korea’s data center market is expanding rapidly in response to digitalization, cloud computing, and edge service demands. Valued at USD 1.41 billion in 2023, the market is projected to grow at a CAGR of 17.1% to reach USD 4.27 billion by 2030. This surge in hyperscale and regional data infrastructure is driving a corresponding increase in electricity demand—heightening the importance of secure, low-carbon baseload energy.
Nuclear power plays a central role in South Korea’s long-term energy strategy. The country’s 26 operating reactors currently supply about one-third of its electricity. The 11th Basic Power Supply and Demand Plan, released in February 2025, outlines the addition of two large-scale reactors and 700 MW of small modular reactor (SMR) capacity by 2038. Over the same period, nuclear generation is expected to increase from 180.5 TWh in 2023 to 248.3 TWh by 2038, with its share of the energy mix rising from 30.7% to 35.2%.
South Korea is also making significant progress toward the commercialization of domestic SMRs, targeting deployment by 2035. These next-generation systems are designed for flexible integration into both urban and industrial environments, offering a reliable solution to power future AI-driven industrial clusters and data-intensive ecosystems.
6. Japan
Japan is embracing a coordinated strategy to advance artificial intelligence and digital infrastructure while reviving nuclear energy as a key enabler of stable, low-carbon power. The government’s pro-innovation policies and strategic partnerships are shaping an ecosystem where AI development and energy security are closely aligned.
In 2025, Japan adopted a pragmatic "light-touch" AI governance strategy aimed at voluntary risk mitigation rather than regulatory constraints. The government has explicitly declared its goal of becoming "the most AI-friendly country in the world," prioritizing innovation and cross-border collaboration. A landmark moment came in February 2025 when SoftBank CEO Masayoshi Son and OpenAI CEO Sam Altman announced a joint venture to deliver AI services in Japan, underpinned by a USD 3 billion annual licensing agreement. This move signals Japan’s ambition to secure a leading position in the global AI economy.
Japan’s data center industry is expanding in parallel. Valued at USD 20.50 billion in FY2025, the market is projected to grow to USD 40.39 billion by FY2033F, at a CAGR of 8.09%. As the second-largest data center market in Asia and the third globally, Japan hosts hyperscale infrastructure from global tech giants such as Google, Microsoft, and Amazon. In 2024, Microsoft committed an additional USD 2.9 billion to scale its data center footprint in the country, further intensifying energy demand.
To support this digital growth while ensuring energy reliability and climate targets, Japan is reactivating and expanding its nuclear power program. Following the 2011 Fukushima Daiichi disaster, 14 reactors have gradually returned to operation. Nuclear’s share in the national power mix rose to 8.5% in FY2023, and the government now targets around 20% by FY2040 under its "maximum use of nuclear power" policy. In February 2023, Japan’s Cabinet approved plans to extend reactor operating lifespans from 40 to 60 years and to authorize the construction of new, next-generation reactors on sites of decommissioned facilities.
This renewed commitment to nuclear power is aligned with Japan’s digital transformation ambitions. The integration of nuclear energy into digital infrastructure development offers a pathway to stable, carbon-free electricity supply for AI clusters and hyperscale data centers. Notably, regions hosting restarted nuclear reactors already report significantly lower electricity costs, creating a competitive advantage for energy-intensive investments in AI and cloud computing.
Opportunities for Investors
This convergence opens substantial opportunities across various sectors:
Nuclear Technology Developers: Companies developing SMRs and advanced reactor designs (e.g., NuScale, Oklo, GE Hitachi, Rolls-Royce, Westinghouse, Holtec, X-energy) are seeing accelerated interest and investment. SMRs are particularly attractive for direct integration with data centers due to their modularity and scalability.
Utilities: Traditional utilities are adapting strategies to meet surging data center demand, exploring new development structures for SMR deployment and considering co-location with existing or new nuclear plants.
AI/Data Center Investors: The need for reliable, carbon-free power for AI workloads presents a compelling investment case in data center infrastructure. Development finance offers a compelling opportunity to gain exposure to the sector, with an estimated 10 GW of global data center construction projected to break ground in 2025.
Digital Infrastructure Companies: Companies providing specialized equipment and services for high-density AI infrastructure, such as advanced cooling systems (e.g., liquid cooling), energy-efficient chips, and robust power infrastructure (UPS systems, generators), stand to benefit. Digital infrastructure companies like Google Cloud are also partnering with nuclear firms to apply AI to optimize nuclear plant construction and operations .
The confluence of AI workloads and hyperscale data center development is creating a high demand for electricity, fundamentally altering global energy landscapes. Nuclear power, particularly through SMRs, is emerging as an indispensable solution for ensuring baseload reliability, achieving net-zero emissions, and providing the high-density, uninterrupted power required by the digital economy. This is not only reshaping national energy strategies but also opening high-value, long-term opportunities for investors seeking to capitalize on the fusion of two of the world’s most critical sectors: energy and technology. As AI continues to scale, nuclear power will become an essential pillar of its infrastructure—making early investment in this nexus both a strategic and future-proof move.
