The U.S. Needs More Nuclear Power To Fuel the Artificial Intelligence Boom
AI is bringing enormous benefits to consumers and businesses. It is also bringing significant strain to the power grid. Some researchers estimate that one ChatGPT query requires the energy equivalent of lighting a lightbulb for 20 minutes and 10 times as much electricity as a single Google search. Goldman Sachs projects that AI will increase data center power demand by 160 percent nationwide through 2030.
The Department of Energy also expects data centers' energy use to balloon. A December 2024 report forecasts that cloud computing will account for as much as 12 percent of the nation's annual energy use by 2028—up from 4.4 percent in 2023. Virginia, California, and Texas will each serve as a "primary hub" for both small- and large-scale cloud data centers, according to the Energy Department.
Texas is the fastest-growing consumer of electricity in the nation, according to the Energy Information Administration. In 2024, the Electric Reliability Council of Texas (ERCOT)—which manages about 90 percent of the state's grid—said electricity demands could nearly double by 2030 as data centers and cryptocurrency grow and as oil operations in the Permian Basin begin to run on electricity instead of diesel. In March, ERCOT said it has received requests for 99 gigawatts (GW) of new connections—enough to power almost 25 million homes—from large power users (including data centers) in the past year. The state will need to add the energy equivalent of 30 nuclear power plants by 2030 to meet demand, reports Bloomberg.
Last Energy is preparing to deliver 30 such reactors—microreactors, that is. In February, the company announced plans to build 30 of its 20-megawatt reactors in Haskell County, Texas, to service data centers across the state. The site is conveniently located 200 miles west of Dallas, where data centers are expected to add 43 GW of demand to the grid through 2029.
The company has filed for a grid connection with ERCOT, which takes about 18–30 months to complete, according to the regulator. Last Energy is also in the process of applying for an Early Site Permit with the Nuclear Regulatory Commission (NRC). Once obtained, the company will have a 10–20 year window to build its reactors.
This will be Last Energy's first operational project in the United States. Despite being an American company, Last Energy has focused on growing its business abroad because of stringent federal regulations. The developer sued the NRC in December 2024, challenging an agency rule requiring all nuclear power–producing entities—including those that do not generate enough electricity to turn on a lightbulb—to obtain an operating license from the commission before turning on.
Texas isn't the only state turning to nuclear power to meet its data center demand. In Virginia, where data centers could double the state's power demands by 2034, Amazon is partnering with Dominion Energy to develop three new nuclear energy projects. Three Mile Island in Middletown, Pennsylvania, is restarting to provide energy to Microsoft's data servers. The power plant was shut down in 2019.
These efforts will only be as cost-effective and efficient as regulations allow. But the renewed interest in clean and reliable nuclear power could allow the U.S. to make advancements in AI with minimal greenhouse gas emissions.
The post The U.S. Needs More Nuclear Power To Fuel the AI Boom appeared first on Reason.com.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
21 minutes ago
- Yahoo
Institutions own 29% of Kossan Rubber Industries Bhd (KLSE:KOSSAN) shares but private companies control 36% of the company
The considerable ownership by private companies in Kossan Rubber Industries Bhd indicates that they collectively have a greater say in management and business strategy 53% of the business is held by the top 5 shareholders Insiders own 14% of Kossan Rubber Industries Bhd Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. Every investor in Kossan Rubber Industries Bhd (KLSE:KOSSAN) should be aware of the most powerful shareholder groups. We can see that private companies own the lion's share in the company with 36% ownership. Put another way, the group faces the maximum upside potential (or downside risk). Meanwhile, institutions make up 29% of the company's shareholders. Institutions often own shares in more established companies, while it's not unusual to see insiders own a fair bit of smaller companies. Let's take a closer look to see what the different types of shareholders can tell us about Kossan Rubber Industries Bhd. See our latest analysis for Kossan Rubber Industries Bhd Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing. As you can see, institutional investors have a fair amount of stake in Kossan Rubber Industries Bhd. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Kossan Rubber Industries Bhd's historic earnings and revenue below, but keep in mind there's always more to the story. Kossan Rubber Industries Bhd is not owned by hedge funds. Our data shows that Kossan Holdings (M) Sdn Bhd is the largest shareholder with 35% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 5.7% and 5.6%, of the shares outstanding, respectively. Additionally, the company's CEO Kuang Sia Lim directly holds 2.8% of the total shares outstanding. Our research also brought to light the fact that roughly 53% of the company is controlled by the top 5 shareholders suggesting that these owners wield significant influence on the business. While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. Quite a few analysts cover the stock, so you could look into forecast growth quite easily. While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves. Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances. It seems insiders own a significant proportion of Kossan Rubber Industries Bhd. It is very interesting to see that insiders have a meaningful RM608m stake in this RM4.3b business. Most would say this shows a good degree of alignment with shareholders, especially in a company of this size. You can click here to see if those insiders have been buying or selling. The general public, who are usually individual investors, hold a 21% stake in Kossan Rubber Industries Bhd. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies. We can see that Private Companies own 36%, of the shares on issue. It might be worth looking deeper into this. If related parties, such as insiders, have an interest in one of these private companies, that should be disclosed in the annual report. Private companies may also have a strategic interest in the company. It's always worth thinking about the different groups who own shares in a company. But to understand Kossan Rubber Industries Bhd better, we need to consider many other factors. Consider for instance, the ever-present spectre of investment risk. We've identified 1 warning sign with Kossan Rubber Industries Bhd , and understanding them should be part of your investment process. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future. NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
Yahoo
27 minutes ago
- Yahoo
Exclusive: Binance CEO responds to IPO plans
Exclusive: Binance CEO responds to IPO plans originally appeared on TheStreet. In an interview with TheStreet Roundtable, when asked about a potential Binance IPO, Richard Teng replied, 'I'm too old to say never say never, right?' He added that any decision of this scale 'are very important corporate decisions that we have to discuss at the board of directors level and discuss with the shareholders what's the intention.' Richard Teng was appointed CEO of Binance in November 2023 — taking over from founder Changpeng 'CZ' Zhao after his U.S. settlement. He had previously led Binance Singapore since August 2021 and served as CEO of the Abu Dhabi Global Market and in senior roles at the Monetary Authority of Singapore, bringing over three decades of financial services and regulatory experience to the exchange. Teng underscored that any listing would need to reflect the strong user demand that underpins Binance's growth. 'What we aim to do as a platform is to continue to be the best platform for our users,' he said. He noted that 'we exist only because our users continue to have strong confidence and trust in us.' Stablecoin issuer Circle debuted on the New York Stock Exchange on June 5, pricing its IPO at $31 per share and opening at $69. The stock closed its first day at $83.23 with a 168% gain after upsizing the deal to raise $1.05 billion, valuing the company at roughly $18 billion on a fully diluted basis. Gemini, the Winklevoss-founded crypto exchange, confidentially filed for a U.S. initial public offering on June 6, signaling its intent to list. Details on share count and pricing remain under wraps, but the filing underscores growing investor appetite for crypto natives in public markets. Teng also pointed out that 'we have seen a sharp growth in terms of user numbers throughout the world, both institution and new retail users coming to us.' He said the board would factor that momentum into its deliberations on timing and structure. Teng emphasized that an IPO must align with Binance's mission to serve its users. He said the company will only proceed when the board and shareholders agree on the path forward — leaving timing open and dependent on collective oversight. Teng disclosed that Binance secured its first institutional investment from MGX, a sovereign-backed investor in Abu Dhabi's AI data center sector. He said MGX made a minority investment of $2 billion in stablecoin — marking the largest crypto-area deal paid in stablecoin and Binance's first institutional backing. While the company remains in a 'very healthy financial shape,' Teng stressed that this capital will support ongoing innovation, security and compliance efforts. Exclusive: Binance CEO responds to IPO plans first appeared on TheStreet on Jun 9, 2025 This story was originally reported by TheStreet on Jun 9, 2025, where it first appeared. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
CNBC
36 minutes ago
- CNBC
CNBC Daily Open: Headwinds don't seem to bother the U.S. stock market
The U.S. stock market appears a little too optimistic. All three major indexes climbed Wednesday, with the S&P 500 and Nasdaq Composite enjoying their third consecutive session in the green. The S&P, in fact, is around 2% away from its all-time high, which it reached in February. That's despite the shadow of U.S. President Donald Trump's "reciprocal" tariffs still haunting the economy. As the 90-day tariff pause ticks down, America, so far, has just one deal, struck with the U.K., and an agreement with China that, while reaffirmed by both sides after two days of negotiations in London, is still preliminary and keeps tariffs at double-digit levels. Corporations are seemingly bracing for economic fallout already. Layoffs have been accelerating this year. Google and Paramount on Tuesday joined Microsoft, Citigroup and Disney in announcing headcount cuts. (However, it should be noted that layoffs, rather perversely, tend to push up stock prices because they are a cost-cutting measure.) And the bond market, the sterner sibling of the stock market, might put a check on investor enthusiasm. If there are unexpected results from U.S. inflation data and Treasury auctions on Wednesday and Thursday, yields could rise again, not only putting pressure on stocks, but also the broader economy in terms of higher borrowing costs. The stock market, then, seems to be betting on more trade breakthroughs and favorable inflation data. But the bond market and CEOs might not be so sure about that. U.S. and China reach trade frameworkThe U.S. and China have reached an agreement on trade, representatives from both sides said Tuesday after a second day of high-level talks in London. The deal now awaits a nod from the leaders of the two countries. U.S. Commerce Secretary Howard Lutnick indicated U.S. restrictions on sales of advanced tech to China in recent weeks would be rolled back as Beijing approves rare-earth exports. S&P 500 notches three-day win streakU.S. stocks rose Wednesday. The S&P 500 advanced 0.55% and the Nasdaq Composite climbed 0.63%, the third day of gains for both indexes. The Dow Jones Industrial Average added 0.25%. Asia-Pacific markets climbed Wednesday on optimism surrounding U.S.-China trade talks. Hong Kong's Hang Seng Index added 0.92% and mainland China's CSI 300 rose 0.77% at 1:30 p.m. Singapore time. Meanwhile, South Korea's Kospi was up 1%, hitting its highest level since January 2022. Musk announces robotaxi launchElon Musk said Tuesday Tesla's robotaxi service is "tentatively" set to launch in Austin, Texas, on June 22. Earlier in the day, Tesla shares rose 5.7% to close at $326.09, leaving the stock about $6 short of where it was trading last Wednesday, when it sank 14% after CEO Musk publicly feuded with Trump. The jump came after Musk shared a video on X showing that Tesla was testing driverless vehicles on the roads of Austin. Bond market in focus The U.S. Bureau of Labor Statistics releases data on May's consumer prices on Wednesday, then producer prices on Thursday. At the same time, the government will hold sales of long-duration Treasurys on the same days. Together, those results could have important implications for the direction of the economy and the reaction of the Federal Reserve and its approach to interest rate policy, reported CNBC's Jeff Cox. Meta to invest $14 billion in Scale AIMark Zuckerberg is so frustrated with Meta's standing in artificial intelligence that he's finalizing a deal to invest $14 billion into Scale AI, which would bring its CEO Alexandr Wang into Meta's fold, people familiar with the matter told CNBC. Scale AI helps major tech companies like OpenAI, Google and Microsoft prepare data they use to train cutting-edge AI models. Google offers buyoutsGoogle on Tuesday offered buyouts to employees in several divisions. Affected units include knowledge and information — which houses the company's search, ads and commerce divisions — and central engineering units as well as marketing, research and communications teams, CNBC has learned. Google has done multiple buyout offers in a few units this year, making it a preferred strategy to reduce headcount. [PRO] Tesla shares to drop 60%: Wells FargoEven though investors were enthused by the prospect of Tesla rolling out its robotaxi service in the future, Wells Fargo analysts think that feature won't be able to offset the company's weak sales that will trend "meaningfully weaker." The bank expects Tesla's shares to plunge around 63% from Tuesday's close. AI hits an already weak jobs market in China China's eagerness to adopt artificial intelligence comes just as economic growth is slowing, putting millions of routine jobs at risk. "I'm planning to get rid of 360 [Security Technology's] entire marketing department. This way the company can save tens of millions a year," founder and chair Zhou Hongyi said in a Chinese-language video on Friday night, translated by CNBC. It's since been viewed more than 191,000 times on popular Chinese platform Weibo alone. Whether or not it's just another sales ploy by Zhou, who goes by the moniker "Red Shirt Big Uncle Zhou Hongyi," the video captures an emerging reality: Companies pressured to cut costs may increasingly replace jobs with AI.
