𝙒𝙝𝙖𝙩 𝙘𝙖𝙪𝙜𝙝𝙩 𝙢𝙮 𝙖𝙩𝙩𝙚𝙣𝙩𝙞𝙤𝙣? Meta’s dual announcements of a new $10B data center in NE Louisiana (it’s largest) and plans for a RFP targeting 1-4 GW of new nuclear generation capacity in the US.
𝙒𝙝𝙖𝙩 𝙘𝙖𝙪𝙜𝙝𝙩 𝙢𝙮 𝙖𝙩𝙩𝙚𝙣𝙩𝙞𝙤𝙣? Exxon Mobil and Chevron looking to serve data center power demand with gas-fired generation paired with carbon capture and sequestration (CCS).
The rapid adoption of artificial intelligence has created exponential demand for data centers. Hyperscalers such as Microsoft, Google and Amazon require reliable, low-carbon electricity to power future data centers, leading to a renewed interest in nuclear energy.
• Favorable power purchase agreements (PPAs), like the Constellation Energy-Microsoft deal for Three Mile Island Unit 1, make repowering economic. New reactors need more initial investment, and Enverus Intelligence Research modeled an achievable ~10% IRR on a $100/MWh PPA at a $7 billion/GW capital cost.
• Figure 1 illustrates the potential for expanding U.S. nuclear capacity to meet aggressive targets of 35 GW of capacity by 2035 and 200 GW by 2050.
• Constellation, Duke Energy, Dominion Energy and Florida Power & Light operate sites that screen well for near-term construction starts, with Holtec International’s Palisades and NextEra Energy’s Duane Arnold sites already leading a new wave of nuclear activity.
Great summary