New nuclear power could meet 10% of projected data center demand increase by 2035: Deloitte

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Deloitte's recent report indicates that new nuclear power could fulfill approximately 10% of the anticipated increase in electricity demand from data centers by 2035. The analysis suggests that the U.S. data center electricity consumption may rise from 33 GW in 2024 to between 176 GW by 2035, driven by the growth of hyperscale tech companies and the electrification of transportation. The report highlights that existing nuclear plants and retired coal sites will play a crucial role in supporting new nuclear capacity, with projections estimating that data centers could consume between 11 GW to 19 GW of the expected 35 GW to 65 GW of new nuclear capacity over the next decade.

Deloitte emphasizes the advantages of nuclear energy, such as reliability, low emissions, and competitive costs, which make it an appealing option for meeting future energy demands. Major tech companies like Microsoft, Amazon, Google, and Meta are already investing in nuclear solutions to secure their energy needs. However, the report also points out that nuclear developers face challenges in reducing construction costs, which currently range significantly higher than those for gas-fired plants. To achieve scalability, the industry must focus on innovative project management and design improvements.