Larry Ellison, the chairman and co-founder of Oracle, made a surprising announcement during the company’s earnings call this week. According to Ellison, the demand for electricity from artificial intelligence is increasing to such an extent that Oracle is exploring the option of sourcing power from next-generation nuclear technology. This move comes as a response to the upcoming need for more than a gigawatt of electricity to power a new data center that Oracle is designing. The data center is projected to be powered by three small nuclear reactors, a decision that Ellison described as “bizarre”.
As artificial intelligence continues to advance and expand into various industries, the demand for electricity to power AI technologies is expected to increase significantly in the coming years. This surge in demand could put a strain on the existing electrical grid infrastructure, prompting companies like Oracle to explore alternative energy solutions. By turning to small modular nuclear reactors, Oracle aims to address the escalating electricity requirements of its data centers while also minimizing the environmental impact.
Small modular nuclear reactors represent a new generation of nuclear technology that offers a more flexible and scalable approach to power generation. These reactors are designed to be smaller in size compared to traditional nuclear reactors, making them easier to deploy and more cost-effective. The prefabricated nature of small modular reactors allows for quicker installation and reduced capital costs, enabling faster and more efficient deployment of carbon-free energy.
While small modular nuclear reactors show promise as a solution to future energy needs, there are still challenges to overcome before widespread commercialization can occur. Currently, small modular reactors are considered a technology of the future, with industry experts predicting that commercialization in the U.S. may not happen until the 2030s. However, the operational small modular reactors in China, Russia, and Japan serve as valuable test cases for the viability and efficiency of this new energy technology.
Oracle’s decision to explore next-generation nuclear power for its data centers demonstrates a proactive approach to addressing the growing demand for electricity in the age of artificial intelligence. By embracing small modular nuclear reactors, Oracle is not only preparing for the future energy needs of its operations but also contributing to the advancement of sustainable and efficient power generation technologies.