New nuclear power capacity has the potential to meet 10 percent of the projected growth of data center power demand in the US over the next decade, according to a new report from Deloitte.

The estimate is based on an assumed expansion of nuclear capacity of between 35GW and 62GW during the period.

The report notes that the growth of the sector is required to meet soaring demand in the US data center market. Deloitte estimates that power demand in the market could fivefold by 2035, reaching 176GW of capacity.

The report highlights several strategies that could support the growth.

These include an optimization of existing capacity, with over 80 percent of the country’s 94 operating reactors having already been relicensed to operate for up to 60 years. Optimization could be achieved through power uprates, where modifications could boost operational capacity.

In addition, the report notes that bringing previously closed plants back online could offer a cost-effective option, with plant restarts costing significantly less than new developments. We have already seen shuttered plants such as the infamous Three Mile Island nuclear plant in Pennsylvania begin the restart process, with support from Microsoft, which last September signed a 20-year Power Purchase Agreement for the 837MW plant’s full capacity. In total, the report suggests that between 60GW to 95GW of new nuclear capacity could be leveraged at existing sites.

The retrofitting of retired coal plants is also suggested, with the report highlighting that there is a potential to install 128GW to 174GW of nuclear capacity at operating and retired coal plants. According to Deloitte, at least 11 states have already publicly expressed interest in exploring this option.

Finally, the report highlights the potential of deploying advanced nuclear technologies, such as small modular and micro reactors. SMRs have gained huge momentum across the data center market already, with major hyperscalers AWS, Google, and Oracle all signing long-term supply agreements with SMR firms in the last 12 months.

To achieve the scaling of the sector, several challenges are highlighted. Firstly, a need to streamline the timelines for new nuclear plants. Due to challenges related to construction timelines and cost overruns, the vast majority of new plants are often delayed and over budget. In addition, concerns over the successful commercialization of SMRs are highlighted, with the report noting that most SMR concepts remain in the development stage and are unlikely to come to market by the 2030s at the very earliest.

The report also calls for greater policy action to support strategic partnerships and investment and financial innovation, and market accessibility. In addition, the report highlights the distinct need to build a larger industry workforce. At present, the industry has around 100,000 people working. To support the growth expected, it is expected to grow to 375,000 by 2050.

https://www.datacenterdynamics.com/en/news/new-nuclear-capacity-has-potential-to-meet-10-percent-of-data-center-demand-in-us-over-next-decade-report/