Big tech sparks a new era for nuclear energy
Nuclear energy is experiencing a resurgence as the power consumption of data centers has massively increased, driven by the massive use of cloud computing to support generative AI services and all other internet-based applications used by billions of users.
Hyperscalers (Microsoft Azure, AWS, Meta, Google Cloud, etc.) require a reliable and sustainable energy source to meet the very rapidly growing and massive energy demand created by these technologies.
An AI request consumes up to ten times more energy than a simple Google search, increasing the need for power resources.
To address this challenge, tech giants have now decided to invest in their own nuclear energy production capabilities.
Following Microsoft’s announcement in September that it is financing of the restart of the idle Three Mile Island reactor (owned by Constellation Energy), last week, both Amazon and Google have signed agreement to develop their own nuclear power through a new small modular reactors (SMR) technology. Amazon is partnering with X-Energy and Google with Kairos Power.
Small Modular Reactors (SMRs) are considered as the next generation nuclear energy sources due to their scalability, their fast construction (3 to 5 years on-site assembly), and their low cost.
Interestingly, startups like NuScale Power, TerraPower, and Oklo even though not directly involved in these deals, have gained attention for their recent investments in SMR technology. These companies are backed by well-known people in the tech industry: TerraPower (Bill Gates), and Oklo (Sam Altman of OpenAI). NuScale, on the other hand, is backed by the US Department of Energy. Their involvement clearly shows the tech industry’s interest in nuclear solutions.
Hyperscalers’ interest in nuclear energy has reinforced the perception that nuclear power is a reliable and sustainable source of clean energy for the future.
Source: Cameco Q2 company overview
Disclaimer
This marketing document has been issued by Bank Syz Ltd. It is not intended for distribution to, publication, provision or use by individuals or legal entities that are citizens of or reside in a state, country or jurisdiction in which applicable laws and regulations prohibit its distribution, publication, provision or use. It is not directed to any person or entity to whom it would be illegal to send such marketing material. This document is intended for informational purposes only and should not be construed as an offer, solicitation or recommendation for the subscription, purchase, sale or safekeeping of any security or financial instrument or for the engagement in any other transaction, as the provision of any investment advice or service, or as a contractual document. Nothing in this document constitutes an investment, legal, tax or accounting advice or a representation that any investment or strategy is suitable or appropriate for an investor's particular and individual circumstances, nor does it constitute a personalized investment advice for any investor. This document reflects the information, opinions and comments of Bank Syz Ltd. as of the date of its publication, which are subject to change without notice. The opinions and comments of the authors in this document reflect their current views and may not coincide with those of other Syz Group entities or third parties, which may have reached different conclusions. The market valuations, terms and calculations contained herein are estimates only. The information provided comes from sources deemed reliable, but Bank Syz Ltd. does not guarantee its completeness, accuracy, reliability and actuality. Past performance gives no indication of nor guarantees current or future results. Bank Syz Ltd. accepts no liability for any loss arising from the use of this document.
Related Articles
Nvidia's market capitalisation possibly overtaking the Nikkei index, investors back the Magnificent 7, and global easing accelerates. Each week, the Syz investment team takes you through the last seven days in seven charts.
The S&P 500 is set to deliver its best performance of the 21st century, even as September inflation in the U.S. jumps unexpectedly. Meanwhile, debit interest rates soar past 23%, adding pressure to consumers. Each week, the Syz investment team takes you through the last seven days in seven charts.
Abundant liquidity in the market is supporting gold and stocks and may even lead to a new bear market rally in China, while the Fed's rate cut may have minimal impact on U.S. equities.