Nuclear power’s future for data centers could hinge on the public’s perceptions about safety

Global data center power consumption could reach as high as 1,000 terawatt hours (TWh) in 2026, more than double what the sector consumed in 2022, according to the International Energy Agency (IEA). The IEA also estimates that an additional 29 gigawatts (GW) of nuclear capacity will come online by 2026, increasing global nuclear generation by nearly 10%.

Is nuclear energy a viable long-term power solution for data centers? JLL recently explored that question in a white paper it posted in early January.

JLL points out that advanced nuclear reactors are smaller, safer and less expensive to build and operate. “Newer designs aren’t quite set-and-forget, but they require a lot less operator intervention than the reactors of the past, which reduces the risk of human error and increases reliability and safety,” says Don Dermond, JLL’s Vice President-Commissioning. “Modern reactors also have inherent safety mechanisms, such as negative temperature coefficients that reduce reactivity as the reactor gets hotter.”

JLL focuses on the growing interest in small modular reactors. SMRs aren’t commercially available yet, but IEA estimates that companies in over 20 countries are developing more than 85 SMR designs and concepts. Investment in advanced fission technologies, including SMRs, shot up to $3.9 billion in the first seven months of 2024, from $355 million invested in all of 2023, according to Axios. 

But future development that leads to commercial deployment will need to iron out some crinkles.

For example, notes JLL, each country continues to evolve its stance on nuclear energy and adjust regulations to support the implementation of newer, safer technologies. Asia is the primary driver of nuclear power growth, but political stances vary throughout Europe, according to IEA. Some countries, such as Germany, are phasing out nuclear power, but 11 other European Union member states launched an alliance to cooperate on nuclear energy and add 50 GW of nuclear capacity by 2050. Meanwhile, the U.S. is providing substantial support for the development of SMRs.

Even as they address regulatory and capital shifts, nuclear-focused companies face another huge challenge—convincing communities that new nuclear projects are safe and clean. “One of the biggest problems I see is winning over hearts,” says Dermond. “The industry must effectively communicate how today’s nuclear plants are inherently safer and the role nuclear can play in a low-carbon future.”