We're advocating for increased federal and tech-sector investments in nuclear energy to support a clean, reliable energy future.

Executive Summary

The rapid advancement of artificial intelligence (AI) and data-centric technologies has drastically increased energy consumption, with global electricity demand projected to rise by 4% annually—equivalent to the electricity consumption of Japan. Nuclear energy's ability to operate at maximum potential output more than 92% of the time showcases its exceptional efficiency and reliability. This high capacity factor means that nuclear power plants consistently produce a significant amount of electricity, far surpassing the performance of other energy sources such as coal, natural gas, and renewables, which often face downtime due to maintenance, fuel supply issues, or the intermittent nature of renewable energy. As a result, nuclear energy stands out as a consistent, clean and dependable power source, making it an exceptional solution for meeting our growing energy needs. 

Background

The Atomic Energy Advancement Act passed in the House of Representatives during the 118th Congress with strong bipartisan support, seeking to accelerate the deployment of advanced nuclear reactors by modernizing licensing processes and expanding funding for nuclear innovation. Although it did not pass in the Senate last Congress, the bill's bipartisan reach underscores the importance of nuclear power as a cornerstone of national energy security and clean energy transition. The urgency for such investment has only grown, as the increasing deployment of Al and cloud computing drives a massive surge in electricity demand. Data centers already account for roughly 6% of U.S. electricity consumption, a figure expected to double within the next decade as Al applications scale. Major tech companies, including Google and Microsoft, have recognized this growing challenge and are turning to small modular reactors (SMRs) as a solution to sustainably power their data operations without increasing carbon emissions. Investing in nuclear energy is critical to ensuring a stable, carbon-free power source that can support the rapid expansion of the digital economy. 

Challenge

The escalating energy requirements of Al and data centers present significant challenges to both environmental sustainability and the stability of the already strained energy grid. Without viable alternative clean energy solutions, U.S. tech companies' emissions could increase by 40 million to 67 million tons of CO2 equivalent (tCO2e) per year by 2030. This undermines corporate sustainability goals and global decarbonization efforts. Renewable sources like wind and solar operate at lower capacity factors (35% and 25%, respectively) compared to nuclear (92%). Their intermittent nature makes them insufficient for powering Al-driven data centers that require continuous, large-scale energy supplies. The U.S. power grid is consistently overloaded, and projected energy demand could surpass available capacity in key regions by the end of the decade. Additionally, the North American Electric Reliability Corporation (NERC) reported that certain regions in the U.S. are at risk for electricity supply shortages during extreme summer conditions. Without substantial investment in baseload power solutions like nuclear, the increasing load from Al-driven industries could lead to more power shortages, greater environmental harms, and increased electricity costs. 

Solution

Nuclear power stands as a reliable and efficient solution to alleviate the strain on the electric grid. Unlike traditional energy sources, nuclear power plants provide a constant and stable supply of electricity, ensuring grid stability even during peak demand periods. The high energy density of nuclear fuel allows for the generation of large amounts of electricity from relatively small amounts of fuel, reducing the dependency on finite resources. Furthermore, nuclear power produces zero greenhouse gas emissions during operation, contributing to climate change mitigation efforts. As the demand for electricity continues to grow with the proliferation of electric vehicles and the electrification of industries, incorporating nuclear energy into the energy mix can help meet this demand sustainably and securely. Additionally, advancements in nuclear technology, such as SMRs, promise enhanced safety and flexibility, making nuclear power an even more attractive option for grid stability. 

Policy Recommendation

ZETA urges the 119th Congress to take decisive actions to support and advance nuclear energy. This includes enacting legislation to build upon previous initiatives like the Atomic Energy Advancement Act, thereby expanding nuclear energy deployment and modernization. Additionally, ZETA emphasizes the importance of fostering public-private partnerships by encouraging collaborations between the government, the tech industry, and energy providers to invest in nuclear infrastructure and incentivize nuclear-powered data centers. Furthermore, ZETA advocates for streamlining regulatory processes to modernize licensing procedures, which will accelerate the development of advanced nuclear technologies and ensure their timely deployment to meet rising energy demands. By prioritizing nuclear energy investments, policymakers can ensure a resilient, clean, and future-ready power supply that sustains both technological innovation and environmental responsibility. ZETA strongly supports legislative action to position nuclear power as a foundation for America's clean energy future.