How tech companies are powering their operations with nuclear and renewable energy

In a notable move, Amazon Web Services (AWS) recently acquired Talen Energy’s 960MW data center campus in Pennsylvania, which draws power from the neighboring 2.5GW Susquehanna Nuclear Power Plant. The $650 million deal is not only a significant investment for AWS, but also a clear indication of a broader trend in the technology industry: companies are increasingly turning to nuclear and renewable energy sources to power their data center operations.

AWS is not alone. MicrosoftMSFT has also taken a step towards nuclear power, signing an agreement with Helion Energy, a private US nuclear fusion company, last year. Helion is expected to supply electricity to Microsoft after about five years, marking the first such power purchase agreement for fusion energy. While it remains to be seen whether Helion will be able to deliver on its ambitious promise to deliver reliable fusion energy in five years, the mere fact that such a reputable company as Microsoft was willing to sign on to the deal gives reason to be optimistic.

The trend to explore the latest energy sources to power their operations extends beyond these two tech giants. Cryptocurrency mining companies, often criticized for their high energy consumption, are also making progress in obtaining electricity from nuclear and renewable sources.

For example, Aspen Creek, a crypto-mining company, has a core principle of using renewable electricity, such as solar and wind, to power its mining operations. Similarly, Blockfusion and US BitcoinBTC Corp are two companies that have opened facilities in Niagara Falls to take advantage of the region’s abundant hydropower. Crypto mining also plays a role in reducing emissions from oil production. By locating near oil fields, mining companies can support technologies that capture and use natural gas that would otherwise be flared or vented, thereby reducing waste.

Crypto mining companies are also boosting nuclear power. TeraWulf, a mining company, opened the first US crypto mining facility powered entirely by nuclear energy in 2023. In addition, Oklo, an energy startup that plans to build advanced small nuclear reactors, has a 20-year deal with signed the mining company Compass Mining.

The increasing adoption of nuclear and renewable energy sources by technology companies is a sign that the industry is facing increasing scrutiny about its energy use. The US Energy Information Administration recently retracted a survey of crypto mining companies’ electricity usage due to the agency’s failure to follow well-established data collection procedures. The incident highlights the pressure crypto-mining and other tech companies face from governments, as well as from the public.

However, it is important to recognize that the technology industry does not sit still. As awareness of their energy consumption grows, companies are proactively seeking solutions and forming partnerships with energy suppliers. This trend shows that the industry is perfectly capable of adapting and addressing the public’s concerns, often before the government has time to step in to do something.

The lesson that can be drawn from these developments is that the private sector is often best equipped to identify and tackle challenges within its own industry. When faced with criticism about their energy use, technology companies responded by exploring and investing in low-emission energy sources. While governments may try to reduce their energy consumption overall—such as through electricity taxes—by turning to low-emission sources, these companies can increase their energy consumption over time as technology demands, without worrying about environmental baggage. This approach not only benefits the companies from a public relations perspective, it has the added benefit of addressing environmental issues without letting in innovation.

As the spotlight shifts to other energy-intensive technologies, such as artificial intelligence, it is important to keep this history in mind. AI, with its growing prominence and huge computing needs, is likely to face similar scrutiny over its energy consumption. The approach taken in the mining and cloud computing spaces could serve as a blueprint for AI companies. By anticipating potential concerns in advance and actively seeking partnerships with energy suppliers, AI firms can demonstrate their commitment to responsible energy use.

That said, pressure campaigns to make tech companies feel guilty about their energy use can easily be counterproductive. If these deals drive up the cost of energy as companies seek riskier or less reliable energy sources out of a desire not to be pilloried in the public square, consumers may well lose out.

Still, the recent agreements between technology companies and nuclear and renewable energy providers are evidence of the industry’s commitment to addressing public concerns about its energy consumption. These companies not only ensure their own best interests from the perspective of their bottom lines, they pave the way for a more energy-abundant future by becoming reliable partners and customers for the energy sources of tomorrow.

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