Meta Platforms (META, Financial)is in talks to pursue nuclear energy as a source of power for artificial intelligence projects that demand more energy and seeks to get nuclear reactors working by the early 2030s, people familiar with the matter said. Tech giants Google (GOOG, Financial), Microsoft (MSFT, Financial), and Amazon (AMZN, Financial) are also pursuing nuclear power to power their AI initiatives, and the company is joining the list.
According to a Grid Strategies LLC report, U.S. electricity demand is being driven by the rising adoption of AI and a broader push for carbon-free energy, with nuclear energy being an emerging potential solution. Nuclear energy is controversial (not safe) but reliable and low-carbon emitting.
Last year, the Biden administration’s Inflation Reduction Act (IRA) offered major tax credits for newly built and existing nuclear power plants. But if President-elect Donald Trump, a critic of the IRA, makes changes to the legislation, these provisions could be in trouble.
Federal uncertainties are growing, but state support is piling up. Last month, Utah Governor Spencer Cox said the state should invest $20 Million to create nuclear power; ‘If you really believe we have to eliminate carbon from the air, then you’ve got to be a pro-nuke.’ Meanwhile, Texas Governor Greg Abbott has also outlined his plans to put Texas at the forefront of nuclear energy.
This article first appeared on GuruFocus.