AI-driven demand for 24/7, carbon-free energy is driving a resurgence in nuclear power, with projects ranging from restarting dormant reactors to deploying advanced Small Modular Reactors (SMRs). While construction costs are high—with recent U.S. projects like Plant Vogtle exceeding $30 billion for two reactors—tech giants are investing heavily, with some, such as the Stargate AI project, anticipating $100 billion in initial costs for infrastructure that could be supported by nuclear power.
Key AI Nuclear Project Costs and Initiatives
- Restarting Nuclear Plants: Tech companies are paying to reopen retired plants. Constellation Energy is investing $1.6 billion to restart the 835-MW Three Mile Island Unit 1 (Crane Clean Energy Center) by 2028, with a 20-year power purchase agreement with Microsoft.
- Small Modular Reactors (SMRs): These are considered more viable for data centers due to their smaller footprint. While prototypes are still in development, SMRs could cost between $7 billion and $12.9 billion for a 600 MW project. Another estimate suggests micro-reactors could cost as little as $20 million, aimed for deployment in the early 2030s.
- Direct Investment & Agreements: Amazon and Talen Energy announced a $650 million deal to purchase a data center co-located with a 960 MW nuclear station.
- Uprates (Boosting Existing Power): Upgrading existing reactors is a faster, cheaper alternative, with some projects estimated to cost just over $1 billion for 200–300 MW of new capacity.
Factors Influencing Costs
- High Capital Expenditure: Nuclear remains over twice as expensive to build as other power sources.
- Long Timelines: New reactors take 6.3 to 7.5 years to build on average, which complicates immediate power needs for AI, though long-term contracts are mitigating this risk for investors.
- Construction Risks: The Vogtle plant in Georgia, which finished in 2024, saw costs double to over $30 billion due to delays.
Regional and Industry Trends
AI Data Center Cost: A fully equipped AI data center in the U.S. can cost around $12 million per megawatt, with additional costs for advanced cooling.
China: Approved 10 new reactors in 2024, with estimated costs around $3 billion per plant.
U.S. Federal Support: The U.S. Department of Energy is supporting the industry with billions in loans and, in 2026, awarded $2.7 billion to expand domestic uranium enrichment.