On 24 September 2024, I wrote an essay for AI Collision our free ai-focused e-letter titled, “Three Mile Island is proof AI and Nuclear are a match made in heaven.”
At the time Microsoft (NASDAQ:MSFT) had just announced a 20-year purchase agreement for the energy from Three Mile Island’s Unit 1 reactor for their AI plans. The purchase was from energy provider Constellation Energy (NASDAQ:CEG).
My concluding paragraph said,
“This is both a tipping point for AI in terms of there is a solution to its insatiable appetite for energy, and for nuclear energy as the world starts to properly wake up to its absolute necessity for our AI future.”
As usual I had plenty of comments from readers about this but one in particular stood out from Alan Byrne,
“Can’t wait to see the look on Ed Miliband’s face when the Labour Government realises that wind power alone will not sustain the country’s development of AI and then announces an abrupt U-turn and authorises more coal, nuclear and oil development within the UK.”
I enjoyed this comment so much that in the next edition of AI Collision I decided to see what Ed Miliband’s face would look like under this realisation. And here’s what the AI image generators at the time delivered when I fed them Alan’s comments,
Then in another edition of AI Collision on 1 October 2024, I was explaining how existing infrastructure such as unused coal mines would make ideal locations for nuclear energy sites.
We’ve been suggesting this was a likely outcome in the UK since 2023. But it was quickly getting traction in the US across the media and the Department of Energy.
And again, we concluded that,
“…there’s no doubt new nuclear tech is going to hit the energy markets in a big way, don’t forget the potential of programmes like Palisades, Three Mile Island and the ability to use existing infrastructure like coal plants to get the job done.
“And if you’re seeing it happen now in the US, it’s only a matter of time until the UK starts to wake up to this potential too.”
We covered the nuclear story a lot over October/November last year because it was just announcement after announcement of big tech buying up decades worth of nuclear energy, big investments into nuclear technology and major developments around nuclear policy…in the US.
But we were adamant that in the UK, eventually wiser heads would prevail, as there was simply no other way for the UK to meet energy demand, let alone any net zero targets they might wishfully have without a lot more nuclear energy in the mix.
And I even wrote another essay for AI Collision last October about how the UK would usher in this nuclear future titled:
In it I wrote about it would be private industry pushing the envelope on nuclear technology, particularly around SMR tech,
“These micro reactors, small-modular reactors (SMRs), are absolutely going to become a commercial reality. We are already on the cusp of cracking the engineering and design to get them into working service, supplying emissions free energy to communities, industry and… the surging demand from AI data centres.”
Then in February this year, in Paris at an infrastructure spending push from President Macron where he said,
“In this world where I have a good friend in the other part of the ocean saying drill baby drill… Here there is no need to drill, it’s just plug baby plug. Electricity is available. You can just plug. It’s ready. And I can tell you we will go fast and very fast.”
Macron was spotted in a private meeting with none other than Sam Altman,
I contend while they no doubt spoke about AI, the fact this was a Macron summit meant that it was more likely they were talking about energy for AI, specifically nuclear energy for AI, of which, Altman has a few irons in the fire. Notably through his nuclear plays with SMR technology company Oklo (NASDAQ:OKLO) and fusion company Helion Energy (private).
It’s clear that AI is the driver behind most sovereign nation nuclear ambitions. And while the UK has dragged its feet on this issue, finally it appears the wiser heads are prevailing.
So, when the question arose on what Ed Miliband’s face would look like when he realised wind wasn’t going to cut it anymore and nuclear had to be a big part of the answer, his face looked like this in real life,
Source: The Guardian
Miliband penned a piece for The Telegraph, “Britain will lead the world in new nuclear golden age,” where he says,
Whatever your political stripe, it is clear that energy security is a crucial responsibility for any government. Today’s announcements by this Government – that we are embarking on the biggest expansion of new nuclear power in over half a century – speak to that central imperative.
There will be money for the Sizewell C nuclear plant, announcement of the SMR competition winner imminently (likely to be Rolls Royce (LSE:RR)), investment into fusion reactor technology and the choosing to “go big” on nuclear.
Of course, sceptics will moan at the cost to build. And the fact that Sizewell is already going to be based on outdated technology. But that’s all somewhat window dressing to the reality that the UK is apparently now open for business on nuclear energy again.
That’s good. That means datacentres can now look at the UK as a viable location. And fortuitously we’ve already seen that with the announcement from the $11 billion Dutch company Nebius (NASDAQ:NBIS) launching an AI cluster of Nvidia Blackwell Ultra GPUs in the UK.
And recently planning was submitted for a massive £7.6bn AI data centre campus in Lincolnshire that would become the biggest in the UK. That £7.6bn doesn’t even include the fit-out of the data centres.
So, however the government comes good on these nuclear ambitions, or doesn’t come good is somewhat of a PR side story. The big deal is it’s now an open-door policy to investment and development.
And when you do that for nuclear energy, you’re also doing that for AI technology. And it means for companies at the forefront of both technologies; there’s a good chance it’s higher for longer all round.
Sam Volkering
Contributing Editor, Investor’s Daily
PS: While UK politicians are only just waking up to the energy demands of AI, Wall Street’s already miles ahead. JPMorgan, Amazon, Microsoft—they’re not waiting for policy shifts. They’re pouring billions into AI infrastructure, much of it nuclear-powered. If you want to see where the smart money is heading next—and how to position yourself before the next wave—watch this briefing now.
