Oracle is turning to nuclear power to address the growing demand for AI data centers.
During the company’s quarterly earnings call on Monday, Oracle founder, chair, and CTO Larry Ellison announced that the tech giant has secured permits to build three small modular reactors (SMRs) to power a data center with over a gigawatt of AI computing capacity.
SMRs, miniaturized nuclear reactors used in naval vessels for nearly 70 years, are designed for mass production and require less infrastructure than conventional reactors. While they promise to be more cost-effective, none are currently operational, and pilot projects have faced challenges.
Oracle’s interest in SMRs comes as the company seeks to expand its global cloud data center footprint, which includes 162 facilities worldwide. Ellison noted that their largest data center, at 800 megawatts, will soon be joined by gigawatt-class datacenters. However, executives did not specify when these facilities or their SMRs will be operational, with estimates pointing to the early 2030s for deployment.
Despite concerns about SMRs’ high costs, slow development, and associated risks, major tech companies are interested in nuclear power. Amazon recently acquired a data center co-located with a nuclear plant, while Microsoft has hired a specialist to oversee SMR deployment.
