In a surprising turn of events, Oracle chairman and co-founder Larry Ellison shocked investors with an announcement about the company’s future plans. Ellison disclosed that the increasing electricity demand from artificial intelligence has led Oracle to consider securing power from next-generation nuclear technology. This revelation came during the company’s earnings call, leaving many analysts taken aback by the unorthodox proposal.
Challenges of AI Demand on the Electrical Grid
Ellison revealed that Oracle is in the process of designing a data center that will require more than a gigawatt of electricity to operate effectively. To meet this substantial power requirement, the data center will be powered by three small nuclear reactors. The implementation of small modular nuclear reactors poses both challenges and opportunities for the energy sector, particularly in the context of rising AI demand.
Small modular nuclear reactors represent a new age of energy technology that aims to accelerate the deployment of reliable and carbon-free power sources. These reactors are designed to address the growing power demands of data centers, manufacturing facilities, and the broader electrification of the economy. By being prefabricated in parts and assembled on-site, small modular reactors offer a cost-effective and efficient solution compared to traditional large-scale nuclear plants.
While small modular nuclear reactors hold significant potential for transforming the energy landscape, their commercialization in the United States is not expected until the 2030s. Currently, there are only three operational small modular reactors worldwide, with two located in China and Russia, countries that are geopolitical rivals of the U.S. Japan also has a test reactor in operation, showcasing the global interest in advancing nuclear power technology.
Overall, Oracle’s unconventional approach to powering its data center with small modular nuclear reactors underscores the growing intersection between AI, energy demand, and technological innovation. As the world continues to grapple with the challenges of sustainability and efficiency, the adoption of novel energy solutions like small modular reactors could pave the way for a more sustainable future. While the path to commercialization may be complex, the potential benefits of embracing nuclear technology in data centers are undoubtedly promising. As the energy sector evolves, companies like Oracle are at the forefront of driving innovation and reimagining the role of nuclear power in the digital age.