WHAT IS THE ROLE OF NUCLEAR ENERGY IN NEXT GEN DATA CENTRES?

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Surging AI and hyperscale demand is pushing data centre energy needs beyond what grids and renewables alone can reliably supply. Nuclear energy, particularly through large plants and emerging small modular reactors (SMRs), offers continuous, low-carbon baseload power that can support resilient, scalable, and future-ready nuclear data centres.

Key Insights:

• Data centre power demand is rapidly accelerating due to AI workloads, high-density racks, and always-on digital services, with global consumption set to more than double by 2030
• Efficiency improvements and renewables are essential but cannot meet the scale and 24/7 reliability required for next-generation nuclear data centres
• Nuclear energy provides consistent, large-scale, low-carbon power that reduces dependence on constrained grids and intermittent energy sources
• Integration models include centralised nuclear plants serving multiple sites or co-located reactors directly powering data centre campuses
• Small modular reactors (SMRs) offer scalable, faster-to-deploy options that align with phased data centre growth and hybrid energy systems
• While nuclear has high upfront costs and regulatory complexity, it delivers long-term energy stability, resilience, and decarbonisation benefits
  

For decades, data centre design focused on uptime, security, and scalability. Power was assumed to be easy to obtain - you simply bought what you needed. That’s no longer the case.

The explosive growth of AI workloads, cloud computing, and always-on digital services has pushed data centre energy consumption and demand far beyond traditional expectations. Data centres that once drew tens of megawatts now need hundreds, and the infrastructure needed to support this demand (grid connections, substations, backup systems) can take years to secure - if it's available at all.

This isn't a temporary spike either: Collectively, data centres worldwide now consume between 200-250 TWh annually - more electricity than entire countries like the UK, Indonesia, or South Africa. Based on climate and energy data reviewed by RED, data centres are now estimated to account for around 2.5% to 3.7% of global greenhouse gas emissions - a footprint larger than aviation, shipping, or deforestation.

Global data centre power consumption is projected to more than double by 2030, with AI alone expected to drive usage from 1-2% to as much as 3-4% of total electricity demand. In constrained markets, growth is limited by power availability.

This boom requires a fundamental rethinking of how data centres are powered. Renewables alone can't meet the scale and consistency required; grid capacity is stretched, and as operators look to maintain service levels while meeting decarbonisation commitments, nuclear energy is emerging as a credible, and increasingly necessary, part of the solution.

At RED, we help design data centre infrastructure that can take advantage of all available energy solutions, including nuclear, to deliver reliable, efficient, and future-ready facilities. In this article, we explore how nuclear can support growth, resilience, and decarbonisation goals for the next generation of data centres.

How are data centres designed?

To understand why nuclear is gaining attention, you need to understand how data centres are designed and what drives their power requirements.

Modern facilities are engineered for continuous availability. Redundant power systems, backup generators, diverse network paths, and resilient cooling ensure digital services remain accessible without interruption. This creates a baseline energy demand that never drops - systems must operate at high capacity, regardless of external conditions.

As workloads have evolved, so have power requirements. AI factories and GPU-heavy infrastructure operate at power densities traditional data centres weren't designed to support. A single AI rack can draw 100kW or more - ten times a standard server rack. The intense heat these racks produce requires advanced cooling, which adds even more to overall energy use.

Power and cooling are now the biggest constraints in data centre design. Rack layouts, network configurations, and facility layouts are all planned around these needs. Because these systems operate continuously, even small efficiency gains matter at scale -  but they don’t reduce the underlying demand for vast quantities of reliable power.

Location decisions now revolve almost entirely around energy access. Proximity to stable, affordable, and low-carbon power determines whether a site is viable. Increasingly, data centre nuclear solutions are being considered for mission-critical operations. Grid capacity, substations, planning permissions, and energy security all shape where data centres can be built and how fast they can expand.

Ultimately, modern data centre infrastructure is defined by its energy strategy. Without reliable, scalable power that can run continuously for decades, nothing else can function. And as demand intensifies while grid capacity remains constrained, the gap between what's needed and what's available continues to widen.

The limits of efficiency and renewables in reducing data centre energy consumption

Data centre operators have made genuine progress in reducing energy consumption. Advanced cooling systems, hardware optimisation, improved airflow management, and real-time monitoring have all helped reduce waste. Power Usage Effectiveness (PUE) scores have improved industry-wide, and many data centres are now among the largest corporate purchasers of renewable energy worldwide.

But efficiency alone can’t solve the core challenge. Even the most efficient facility still needs a continuous energy supply, and efficiency improvements, while essential for operational performance and data centre compliance, don’t eliminate the need for firm power. 

As AI and high-density workloads grow, total power consumption rises, no matter how optimised the systems are. Efficiency can reduce waste - but it can’t keep up with exponential demand growth.

Renewables also have structural limitations. Solar stops generating at night, and wind is unpredictable. Data centres run 24/7 without pause, and while batteries can smooth short-term fluctuations, storing enough energy to cover extended low-generation periods is prohibitively expensive at scale.

Grid constraints make this even harder. High-demand regions face years-long waits for grid connections, planning delays, land restrictions, and local opposition. Even when renewables are built, they often can't deliver power where and when it's needed most.

We need to stress that we’re not downplaying the importance of renewables here - they’re central to decarbonisation strategies. But relying on them exclusively creates risks for mission-critical operations. Nuclear energy, however, offers something renewables currently cannot: continuous, predictable baseload power at the scale modern data centres require.

How to reduce the energy consumption of a data centre

Nuclear plants typically operate at capacity factors above 90%, providing consistent output around the clock - perfect for the operation of modern nuclear data centres. This reliability reduces dependence on weather-dependent renewables and eases pressure on stressed public grids.

Scale is another advantage. A single nuclear reactor can generate enough power to supply multiple hyperscale facilities, simplifying planning, reducing transmission losses, and providing long-term energy cost stability - essential for infrastructure designed to operate for decades.

Integrating nuclear power fundamentally changes how data centres secure energy. It moves facilities from reliance on the public grid to a dedicated, reliable, low-carbon supply, reducing operational risk over a 40+ year lifespan.

Major technology companies are already acting. Microsoft has signed agreements with Constellation Energy for nuclear-powered data centres, while Amazon and Google are exploring similar strategies. The conversation has shifted industry-wide from whether nuclear makes sense to how quickly it can be deployed and integrated into data centre infrastructure planning.

Integrating nuclear power into modern data centre design

Two main approaches are emerging for pairing nuclear energy with data centres.

One model uses centralised generation, connecting large nuclear plants to multiple facilities through dedicated transmission networks. This works well for campus-style developments or regional clusters, where energy can be shared efficiently across sites.

The other approach co-locates reactors on or near data centre sites. This reduces transmission losses, streamlines planning, and gives operators direct control over their power supply. It’s particularly useful in regions with limited grid access or where long-term energy security is a priority.

Both approaches change the way nuclear data centres are designed. Power is no longer just something you buy - it becomes a core part of the facility. RED works with clients to plan infrastructure that can integrate these energy sources, enabling reliable, resilient, and future-ready operations even in challenging grid environments.

Small modular reactors (SMRs) and the evolution of data centre design

SMRs are opening new possibilities for nuclear-powered data centres. Unlike traditional large-scale plants, which can take a decade to build and require huge upfront investment, SMRs are factory-built, scalable, and faster to deploy.

For data centre operators, this matters. SMRs can be deployed incrementally, matching capacity to actual demand rather than overbuilding years in advance. A facility could start with one or two reactors and expand as workloads grow - a strategy that mirrors how modern data centre infrastructure is actually phased in.

Siting flexibility is another advantage SMRs provide. They need less land, produce less waste, and can be located closer to demand centres than conventional nuclear plants. That reduces transmission infrastructure costs and improves energy efficiency across the site.

Integration with existing infrastructure is also more straightforward. SMRs can work alongside renewables, battery storage, and grid connections, creating hybrid energy systems that balance reliability, sustainability, and operational flexibility.

This doesn't mean SMRs are ready tomorrow. Regulatory approval, supply chain development, and operational expertise all take time. But the technology is maturing rapidly, and operators planning infrastructure for the 2030s are designing with SMRs in mind. That’s something we’re closely familiar with at RED, helping clients plan future-ready facilities, ready to take advantage of emerging energy solutions.

The economics of nuclear-powered data centres

Nuclear energy comes with a high upfront cost - reactor construction, regulatory approval, and integration aren’t cheap. But over a 30-year operational life, the economics often work in its favour.

• Stable energy costs: Once online, nuclear data centres have predictable, low-carbon power, reducing exposure to fuel price swings, carbon pricing, and certificate markets.
• Grid independence: Nuclear can unlock sites where new grid connections are costly or slow, speeding up deployment.
• National impact: Nuclear-powered data centres could reduce strain on public grids, freeing capacity for electrification elsewhere while supporting critical digital infrastructure.
• Long-term resilience: By lessening strain on public grids, nuclear supports wider energy security and decarbonisation goals.
  

It’s not right for every project, but for operators planning hyperscale or mission-critical facilities, nuclear is becoming an increasingly strategic choice.

Compliance, safety, and regulatory realities for nuclear-enabled data centres

Nuclear power adds extra layers of planning, but with the right approach, it’s manageable - and it opens up opportunities for more resilient infrastructure. At RED, we see it as part of designing facilities that are safe, reliable, and future-ready from day one.

Important points to consider:

• Regulatory oversight: UK nuclear facilities are regulated by the Office for Nuclear Regulation. Data centres need safety protocols, risk management, and emergency planning that meet these standards.
• Early planning: Engaging regulators from the start and developing internal nuclear expertise ensures smooth approvals and integration with existing critical infrastructure.
• Public and community trust: Clear communication, independent safety checks, and alignment with local energy strategies help secure local support and confidence.
• Future-ready frameworks: Frameworks will evolve as nuclear-powered data centres grow - but robust safety and compliance remain the foundation of every design decision.

At RED, we guide clients through these complexities, turning regulatory requirements into a clear plan for reliable, long-lasting infrastructure that can operate confidently for decades.

Deciding to use nuclear power changes everything: site selection, phasing strategy, power architecture, compliance planning, and long-term operational risk. These factors need to be embedded from day one.

RED works with clients across every stage of this process, from early feasibility and energy strategy to infrastructure design, regulatory engagement, and the delivery of resilient, low-carbon technologies.

Get in touch with us today to explore how your next data centre can integrate low-carbon technologies, remain energy-resilient, and stay future-ready.