As AI drives a new nuclear era, US tech giants and China reshape global power

Middle East Eye

14 hours ago

As of March 2025, Google, Meta and Microsoft, the three biggest tech companies in the United States, pledged to triple their investments in nuclear energy by 2050.
These plans highlight the sector's efforts to address one of the major challenges posed by the rapid expansion of artificial intelligence: its immense energy demands.
This renewed interest in nuclear energy marks a new phase in the technology's history.
The development of nuclear power began in the late 1930s, as the US and the Soviet Union raced to build the atomic bomb. Shortly after the Second World War, the technology was redirected towards civilian and commercial use, leading companies to begin developing nuclear plants under state supervision.
However, by the late 1970s, concerns over safety, the declining cost of other renewable sources such as solar and wind, and the global prevalence of oil led many countries - particularly democracies - to scale back nuclear development.
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China, by contrast, continued to invest. Over the following decades, it steadily expanded its nuclear infrastructure, positioning itself as a global leader just as the rest of the industry languished, with little development and declining appeal.
Today, the convergence of China's state-led strategy and the private ambitions of western tech giants marks the beginning of a new nuclear era - one set to transform energy systems, accelerate the AI race, and reshape global power.
Driving forces
The revival of nuclear energy has been driven by a convergence of technological, economic and strategic factors.
First, the astronomical growth in energy demand to power AI has rendered traditional sources increasingly inadequate.
Tech companies have turned to nuclear power for its enhanced capacity and relatively low carbon footprint. Meta alone aims to generate 4 gigawatts (GW) of energy - enough to power up to three million US homes - a figure that illustrates the enormous energy needs of today's tech giants.
Only the largest corporate players can afford the astronomical costs of nuclear energy - but the promise of AI-driven profits is drawing billions in investment
Second, although nuclear energy is relatively inexpensive to operate, the initial capital costs are extraordinarily high and often exceed projected budgets.
For example, generating 4 GW of power can cost around $40bn - more than the total energy budget of many countries. Only the largest corporate players can afford such investments.
The promise of substantial AI-driven profits is one key incentive, spurring the rise of nuclear energy start-ups and drawing billions in venture capital.
Third, since the early 2000s, the industry has seen major technological breakthroughs, including small modular reactors (SMRs), which are easier to transport and assemble, and microreactors, which require less human oversight.
Meanwhile, Gen IV reactors can produce more energy through advanced processes. These innovations coincide with AI's increasing energy requirements - and, crucially, some have been made possible by AI itself, which enables large-scale simulations and reduces human interaction with reactors, thereby improving safety.
Global stakes
China, too, is advancing many of these innovations - but through a centralised, state-led framework for nuclear development that stands in sharp contrast to the market-driven approach of western tech firms.
Still, a notable degree of public-private collaboration remains. Full state backing of this technology reduces regulatory hurdles and increases coherence in the entire project.
In addition, China has focused on thorium reactors - operationalising its first in April 2025 - in place of uranium, to reduce dependence on western supplies.
This was aided by China's early 2025 discovery of sufficient domestic thorium reserves to power its nuclear programme for decades.
This unfolding nuclear era carries far-reaching global and political implications, beginning with the growing influence of tech companies in a space once dominated by governments.
Their emergence as major players in nuclear development creates friction with US regulatory authorities, as commercial ambitions often run up against stringent licensing and safety protocols.
While President Donald Trump has ramped up support for the industry, regulatory oversight remains a critical point of tension - especially given the risk that companies might prioritise speed and profit over caution, a pattern well-documented across the corporate world.
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These innovations also intensify the strategic rivalry between the US and China.
With tariff wars having intensified since Trump came to power, tensions are already at fever pitch.
While the Cold War arms race was measured in warheads, this new nuclear age will likely be defined by the number of reactors built - and the AI technologies they power.
Nuclear energy is becoming another front in a widening struggle for global dominance.
At the same time, both tech companies and China are now looking to export these innovations, particularly smaller nuclear reactors, to developing countries to help recover costs.
While tech firms may face regulatory hurdles in doing so, China could take advantage of its vast trade networks under the Belt and Road Initiative to sell this technology more freely - potentially leading to major geopolitical shifts and further challenging US hegemony.
Energy transition
The rise of nuclear technology is also expected to have ripple effects across existing energy sources - particularly coal, natural gas and oil, in that order of magnitude.
The energy shift underway could redraw political and economic power in the Middle East
Coal, already in decline, is expected to lose what remains of its foothold. Gas and oil may follow, as carbon taxes and climate regulations intensify pressure for cleaner alternatives.
Over time, this transition could shift the foundations of political and economic power, creating new dynamics in regions such as the Middle East, where many of today's energy giants are based.
Nuclear technology, once seen as a Cold War relic, is experiencing a silent resurgence in innovation and funding - one that is set to transform not only energy systems, but the geopolitical landscape for decades to come.
The views expressed in this article belong to the author and do not necessarily reflect the editorial policy of Middle East Eye.