Covering Disruptive Technology Powering Business in The Digital Age

Written by: Izzat Najmi Abdullah, Journalist, AOPG.

The expanding landscape of data centres is currently wrestling with a pressing energy challenge, seeking both substantial growth and a shift towards net-zero emissions. A crucial requirement for this transition is access to low-carbon electricity, a resource that is not consistently available.

This dilemma is acutely evident in regions such as Hong Kong and Ireland, where the limited availability of renewable energy raises concerns about meeting the energy demands of proposed data centres. The fear is that these data centres, in their quest for energy, might exhaust the limited green power, leaving insufficient resources for decarbonising essential sectors like heating and transportation. This, in turn, puts the overall national net-zero targets at risk.

Addressing this energy crunch could involve considering nuclear power as a viable solution. Nuclear energy stands out for its minimal to zero greenhouse gas emissions and its potential to deliver energy precisely where it is needed. Crucially, nuclear power offers a consistent and dependable base load, a feature that aligns seamlessly with the continuous power requirements of data centres and sets it apart from other renewable sources that rely on variable weather conditions.

Despite historical challenges associated with large-scale nuclear projects, certain European nations, including France, have successfully classified nuclear energy as a clean technology. This acknowledgement stems from nuclear power’s ability to provide a stable base load without contributing to greenhouse gas emissions.

However, nations with existing nuclear power face a quandary as older plants approach the end of their operational lives. Governments are wary of committing to extensive nuclear projects with uncertain outcomes, paving the way for a different approach – Small Modular Reactors (SMRs).

SMRs represent a paradigm shift, designed to overcome the limitations of traditional nuclear projects by being more manageable in size and constructed from pre-approved designs with factory-made components. This streamlined approach allows for quicker and more repeatable deployment. The initial deployment of SMR reactors is expected to take place on existing nuclear sites, leveraging established infrastructure and permitting processes.

The United Kingdom emerges as a key advocate for SMRs, with plans to invest up to £20 billion over two decades in developing a fleet of power plants covering a substantial portion of the country’s electricity consumption. Leading industry players, such as Rolls-Royce, are actively contributing to this initiative, aiming to install 16 SMR generators in the UK.

In the United States, NuScale leads the charge with its Voygr system, supported by significant government backing and approval from the Nuclear Regulatory Commission (NRC) for deployment. Despite challenges, such as cost adjustments from an initial promise of USD $55 per MWh to a revised estimate of USD $90 per MWh, nuclear power’s advantage lies in its ability to provide a reliable and continuous energy supply.

As the global community grapples with the need for sustainable and reliable energy sources, the evolving landscape of nuclear power and the promising prospects of small modular reactors usher in a new era in the pursuit of a greener, more efficient future for data centres and beyond.

Past Accidents Haunting SMRs Data Centre’s Future

However, scepticism remains a significant hurdle for SMRs. The spectre of past nuclear accidents such as the indelible memories of incidents like Chernobyl and Fukushima understandably triggers concerns about safety and the proximity of nuclear facilities. Framing the conversation as “Who wants a nuclear power plant in their backyard?” doesn’t help. Instead, a strategic approach focused on transparency and community engagement is crucial.

A key strategy involves deploying the first SMRs at existing nuclear sites. This leverages existing infrastructure, permits, and grid connections, minimising disruption and streamlining the process. Additionally, these locations are likely to house communities already familiar with nuclear power, potentially easing public acceptance and fostering collaboration.

A prime example is Rolls-Royce’s plan to utilise a decommissioned nuclear plant in Wales. This clever repurposing not only reduces the need for new construction but also demonstrates responsible utilisation of existing resources for cleaner energy production.

Similarly, Canada’s Ontario Power Generation (OPG) is building new SMRs at their existing site in Darlington, Ontario. This familiarity with nuclear power among the local population can contribute to open dialogue and collaboration as OPG explores supplying clean energy to data centres, potentially including Microsoft.

By prioritising existing sites and actively engaging with surrounding communities, the perception of SMRs can be transformed. This approach fosters trust and builds a more accepting environment for this potentially game-changing technology. Instead of fearing a nuclear power plant in their backyard, communities can become partners in a cleaner energy future. This shift in perception is essential for the successful deployment and wider adoption of SMRs.

Early Adaptors and the Road Ahead

The concept of nuclear-powered data centres is still in its early stages, but pioneers are emerging. Earlier this year, the completion of the first building at Talen Energy’s Susquehanna data centre campus in the city of Pennsylvania marks a significant step towards a nuclear-powered data centre. This project, led by Cumulus Data, a subsidiary of Talen Energy, aims to tap into the reliable, carbon-free energy of nuclear power to address the ever-growing demand for data centre infrastructure.

The Susquehanna campus boasts a 48MW, 300,000 square-foot data centre powered by the adjacent 2.5GW Susquehanna Steam Electric Station, one of the largest nuclear power plants in the US. This direct connection eliminates the need for traditional power grids, potentially offering significant cost and environmental benefits. Cumulus plans to build six such facilities on the 1,200-acre campus, catering to both hyperscale and crypto mining needs.

The appeal of nuclear power for data centres is multifaceted. Firstly, it provides reliable, 24/7 baseload power, crucial for data centres that require constant uptime. Secondly, it offers a carbon-free solution, aligning with the growing demand for sustainable data centre operations. Additionally, the project promises cost-effectiveness due to the direct connection to the nuclear plant and the potential for economies of scale.

Companies like Microsoft are also exploring partnerships with nuclear energy providers to power their cloud services. Back in September 2022, Microsoft announced that it had joined forces with Canadian energy giant OPG to procure renewable energy, including nuclear sources, for its data centres. This agreement marks a significant step towards realising Microsoft’s ambitious sustainability goals and demonstrates the potential of SMRs in powering a cleaner future.

The crux of the deal lies in Microsoft’s purchase of Clean Energy Credits (CECs) derived from OPG’s carbon-free hydro and nuclear assets. This hourly procurement enables Microsoft to directly match its actual energy consumption with clean energy, a critical aspect of its 2030 goal of 100% zero-carbon energy purchases. The agreement sets a precedent for data centre operators seeking reliable and carbon-neutral energy solutions.

As these partnerships evolve and SMR technology matures, the feasibility and cost-effectiveness of nuclear-powered data centres will become clearer.

A Complex Equation with a Promising Future

Although some may disagree, I believe nuclear power deserves a central role, not just a supporting one, in powering our data centres. While it’s a complex issue, the potential outweighs the challenges. Sure, costs, safety concerns, and regulations pose significant hurdles, but the growing need for clean energy and the specific needs of data centres make a strong case for nuclear power’s rise.

Building a sustainable and secure digital future feels like solving a complex puzzle with missing pieces. However, embracing nuclear-powered data centres could be like finding the missing cornerstone, laying the foundation for a stronger and more responsible digital infrastructure. Just as technological advancements continually refine our tools and systems, adopting nuclear-powered data centres represents a gradual but impactful progression towards a more efficient and environmentally conscious digital infrastructure.

While early implementations may not be perfect, they are crucial steps towards a future where efficiency and sustainability go hand-in-hand. Recognising the challenges and ensuring responsible implementation is key to unlocking the potential of this technology and ushering in a new era for data centres, one byte at a time.

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