Abstract
The rapid growth of artificial intelligence (AI) is driving an unprecedented demand for energy. This article explores the critical role of nuclear power in supporting AI development and infrastructure in the United States. It analyzes the energy-intensive nature of AI, the benefits of nuclear power as a reliable energy source, environmental considerations, economic impacts, and infrastructure development.
Introduction
Artificial intelligence has emerged as a transformative technology with far-reaching implications across various sectors. However, the development and deployment of AI is heavily reliant on energy consumption, particularly for training large-scale models and powering data centers. As AI continues to advance, the demand for reliable and sustainable energy sources will become increasingly critical. This article examines the potential of nuclear power to serve as a catalyst for AI development and infrastructure, with specific focus on the U.S. regulatory environment.
The Energy-Intensive Nature of AI
The training and operation of AI models, especially deep learning algorithms, require significant computational power, which translates to substantial energy consumption. Data centers, where AI models are housed and trained, are energy-intensive facilities that consume vast amounts of electricity. The increasing complexity and scale of AI models, such as the large language models developed by organizations like OpenAI, further exacerbate energy demands.
Nuclear Power: A Reliable Energy Source for AI
Nuclear power offers several advantages as a reliable energy source for AI development. First, nuclear power plants provide baseload power, meaning they can operate continuously at full capacity, ensuring a stable and consistent energy supply. This is essential for AI infrastructure, which requires uninterrupted power to avoid disruptions in training and operations. Second, nuclear power has a high energy density, allowing it to generate significant amounts of electricity from a relatively small footprint. This efficiency is particularly important for meeting the growing energy demands of AI.
The Nuclear Regulatory Commission
The U.S. Nuclear Regulatory Commission (NRC) was created as an independent agency by the United States Congress in 1974 to ensure the safe use of radioactive materials for beneficial civilian purposes while protecting people and the environment. The NRC regulates commercial nuclear power plants and other uses of nuclear materials, such as nuclear medicine, through licensing, inspection and enforcement of its requirements.[1] The NRC recognizes that artificial intelligence is rapidly developing, and that AI will likely involve NRC regulated activities. The NRC is working to ensure staff readiness to review and evaluate AI applications effectively and efficiently.
Issues Regarding Nuclear Power in the United States
Regulatory lead time
Based upon the Nuclear Regulatory Commission (NRC) website, the NRC must evaluate any application, including design specifications, to build or retrofit a nuclear facility prior to authorization. Historically, the average time from submission of an application to its approval is approximately 3 years. The authorization to build the facility is valid for 10 – 15 years once approved.
In the past, certain regulatory hearings became contentious. There are cases where the construction and permitting of the plant took up to 20 years prior to granting of an operational license. The significant lag time between the onset of nuclear construction and operation (revenue generation), resulted in large debt burdens born by the utility that owned the plant. Often, after project completion, especially after material delays in receiving operational authority, the rate shock to consumers would have been so great that phase-ins of rate increases were ordered . Often the rate order resulted in a large write-down of the asset valuation leading to large losses for the utility.
What is different now? The nuclear facility technology
The DOE is making a bid to “assist the private sector in establishing a credible and sustainable pathway to deploying a fleet of small modular reactors (SMRs) across the country”. Based on the provisions of the 2024 appropriations under the Infrastructure Investment and Job Act, the DOE is taking a consortium approach to reactor deployment in a bid to spread risk and cost while avoiding cost-overruns. Fifty percent cost-shared funding will be paid only after a team has reached DOE milestones. The team will not be led by a reactor vendor like Westinghouse as has historically been the case. Instead, the team will consist of a utility, the entity that will buy the electricity and a development company.
On October 16, 2024, Amazon, X-energy, Energy Northwest, and Dominion Energy announced their proposed investment in X-energy’s high-temperature gas-cooled reactor technology. This application represents the initial domestic deployment of a new technology type of reactor—light water reactors generating about 300 megawatts of electricity (MWe). Multiple design proposals will be presented to the NRC by 2025. The goal is to fully construct the plant by 2030.
The hope is that a standardized design will speed up regulatory and construction lag, making these facilities more affordable. While the technology is promising, there is still a considerable length of time between contract signing and plant operation. The lag time could have large economic consequences as it did historically.
Other Risks associated with Nuclear Power
One of the primary concerns associated with nuclear power is the management of nuclear waste. Nuclear waste disposal remains a complex challenge. Fortunately, advancements in nuclear technology and safety procedures have significantly improved the handling and storage of radioactive materials. Currently, spent fuel is stored in dry casks encased in steel and concrete in the U.S. In Europe and Asia especially, spent fuel reprocessed or recycled. This is a more expensive alternative than onsite storage but reduces the amount of spent fuel stored on a nuclear plant’s property.
Research is ongoing to develop innovative and permanent solutions for nuclear waste disposal. The leading proposal currently is to construct deep geological repositories. The DOE began study of Yucca Mountain as a potential location for the repository in 1978 for the U.S. The U.S. Congress approved the site in 2002. Since that time, however, legal challenges have delayed completion of the project. These lawsuits include concern regarding the safe transportation of radioactive waste to the facility. Another legal challenge centers on the fact that Yucca Mountain is in territory considered sacred by the Western Shoshone Indian tribe. The proposed facility is not politically favored by the people of Nevada who have been fighting the development for three decades via ballot initiatives.
Environmental Benefits of Nuclear Power
Nuclear power plants have a relatively low carbon footprint compared to fossil fuel-powered plants. They are therefore a valuable tool in addressing climate change. By reducing greenhouse gas emissions, nuclear power can contribute to a more sustainable energy future. The DOE initial goal is to build 200 gigawatts of new nuclear power plants by 2050.[2]
In addition to newly built nuclear facilities, the plan is to expand, retrofit, and/or upgrade existing facilities. President Biden’s Investing in America Agenda has spurred a new industrial revolution in clean energy.
New U.S. nuclear manufacturing announcements under President Biden are as follows:
- Up to $9 billion in announced investments so far.
- Investments in 39 facilities across 17 states. One high profile example of this would be Microsoft’s Agreement with Constellation Energy. Unit 1 of Three Mile Island Power Facility will be restarted. The unit closed in 2019 following 30 years of successful operation. Microsoft agreed to purchase 100% of the facility’s generating capacity for 20 years. Please note that it was Unit 2 of Three Mile Island that suffered a nuclear accident in 1979.
- Over 75% of the announcements of nuclear infrastructure growth are to expand domestic uranium production and nuclear fuel fabrication facilities. The infrastructure will benefit existing reactors and develop a secure supply chain for advanced reactors.[3]
The Economic Benefits of Nuclear Power Construction
Investing in nuclear power construction can have significant economic benefits. The development of new nuclear power plants creates jobs in various sectors, including construction, engineering, and operations. Additionally, nuclear power plants can contribute to energy independence, reducing reliance on foreign energy sources and strengthening the domestic economy. The Bipartisan Infrastructure Law is leading to announcements of historic levels of private sector investments in the U.S.. The law is intended to bring manufacturing back to America and create good-paying clean energy jobs across the nation.
Nuclear power is expensive to construct, but once built, the power is extremely price competitive.
Conclusion
As AI continues to advance, the demand for energy will only intensify. Nuclear power offers a promising solution to meet this growing energy need while addressing environmental concerns and economic challenges. By investing in nuclear power infrastructure, the U.S. can position itself as a global leader in AI development and innovation.
Nuclear power is anticipated to grow as the U.S. diversifies its energy sources away from fossil fuels. Technological advancements are both improving plant efficiency and reducing the cost. While politics will always be a factor in the United States, economic necessity and cost sharing among partnerships will add investment stability in this space.
Outside the U.S. global support of nuclear power has been solid for decades.
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[2] https://www.ans.org/news/article-6463/iliftoffi-report-lifts-the-lid-on-cost-and-risk-in-push-to-nthofakind-reactors/
[3] https://www.energy.gov/invest
