Oracle Secures Approval for Nuclear-Powered AI Data Center

Oracle Set to Use Nuclear Power for AI Data Center

Oracle Corporation has been granted permission to construct three small modular nuclear reactors (SMRs) to bolster its AI data center. The announcement was made during the tech company's quarterly earnings call with a plan to utilize these compact nuclear plants for their upcoming AI data center projected to have a capacity of a minimum of one gigawatt.

In contrast to conventional naval reactors, SMRs offer a less expensive manufacturing process due to their smaller size and ease of mass production. Other advantages include a more economical operating cost due to their modular design and a reduction in the significant infrastructure generally linked with traditional nuclear power plants.

Challenges Ahead for Nuclear-Powered Data Centers

Despite Oracle having the necessary permits for constructing SMRs, various factors could still hinder their deployment. One significant concern lies within the social stigma attached to nuclear power plants, further intensified by such incidents as Chernobyl and Fukushima. Beyond these challenges, the operation of said SMRs would require additional authorization centered around safety concerns and potential security issues arising from the handling of hazardous nuclear materials.

However, regardless of these hurdles, Oracle remains committed to realizing its plans as it currently has 162 cloud data centers in various stages of development globally.

Nuclear Energy as the Next Step in Data Center Development

Oracle's CTO and co-founder Larry Ellison stated, in the company's latest earnings call, that they have plans to initiate the construction of data centers with capacities exceeding a gigawatt. Consequently, electricity is one of the company's major operational costs, and with mounting concerns about global warming and carbon footprint, the company is exploring environmentally friendly energy sources. Building small nuclear reactors is one way the company could potentially mitigate these concerns. Oracle, however, is not alone in this thinking. Microsoft Corporation is also reported to be researching nuclear power as an option for their energy requirements, making Oracle's decision not just a stand-alone case but rather a potential industry trend.

Even with this recent permit acquisition, it is important to curb expectations given the lengthy process ahead. The construction and deployment of nuclear power plants, albeit small, still require many years, with the most optimistic estimations suggesting early 2030s for SMR deployments. In the interim, companies like Oracle would resort to other energy sources to power their ambitious AI projects.