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Earlier this year, Meta made a significant attempt to obtain its own nuclear-powered data center in an effortless manner. It planned to build one adjacent to an existing reactor. However, regulators dampened the plan as the site was reported to be the home of a rare bee species. Consequently, the company has come up with a new idea - to find a developer who will construct one or more nuclear power plants anywhere in the United States.

Meta's Request for Proposals

Yesterday, Meta announced a call for proposals from nuclear power developers. The aim is to add 1 to 4 gigawatts of electricity generating capacity in the U.S. According to Axios, the company is willing to share costs in the early stages. Once the reactors are operational, Meta is committed to purchasing the power. The hitch is that applicants need to act quickly. Initial proposals are due on February 7, 2025, and Meta desires the power plants to start operating in the early 2030s.

Flexibility in Location

Apart from the tight timeline, Meta is open to flexibility. The new power plants do not have to be located next to a preferred data center. As long as the power is made available to support the growth needs of the electric grids that power both Meta's data centers and the surrounding communities, it is acceptable. This stance might help Meta avoid regulators' concerns about balancing data center power needs with existing demand and grid stability. For instance, an Amazon data center faced setbacks when the Federal Energy Regulatory Commission denied its bid to expand an existing data center power agreement due to concerns of potential brownouts or blackouts for other customers.

Traditional vs. Small Modular Reactors

Today's traditional nuclear power plants are typically rated around 1 gigawatt, and one such plant would meet Meta's lowest ambitions. But these designs are known to be costly and time-consuming to build. Small modular reactors (SMR), on the other hand, promise to reduce costs through modularization and mass production. However, these claims have not been tested on a commercial scale yet. Despite the uncertainty, tech companies are not slowing down. Microsoft hopes to restart a reactor at Three Mile Island by 2028. Google is betting on SMR technology to fulfill its AI and sustainability goals by signing a deal with startup Kairos Power for 500 megawatts of electricity. Amazon has also shown support for SMR startup X-Energy by investing in the company and signing two development agreements for around 300 megawatts of generating capacity.

The Nuclear Power Renaissance

The flurry of activity in the past few months indicates that nuclear power is set for a renaissance in the coming decade, at least if tech companies can keep their promises. The surge in interest recalls tech's early support for renewable power developers, as Meta pointed out in its announcement. "We want to work creatively with developers to structure an agreement that will similarly enable the development of nuclear technology," the company said. However, a lot depends on timing. Renewable power and batteries are continuing to become cheaper, and several fusion power startups are promising to start their first commercial-scale reactors in the early 2030s. Given the forecasted demand, there should be ample room for winners, but it does not mean that every competitor will succeed.