Bill Gates Says Nuclear Energy Can Solve AI's Power Crisis—TerraPower's Bold Deal Marks A New Era For U.S. Data Centers

TerraPower, the nuclear startup backed by Bill Gates, has signed a memorandum of understanding with Sabey Data Centers, one of the country's leading data center developers, to supply power for both existing and future facilities using advanced nuclear reactors.

This move comes as the rapid expansion of AI-driven data centers continues to push power grids to their limits. Electricity demand from these centers has soared over the past decade—as more companies rely on artificial intelligence, and forecasts indicate this trend will only intensify.

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At the core of the agreement is TerraPower's Natrium reactor, a 345‑megawatt sodium‑cooled fast reactor that features an innovative molten salt‑based energy storage system.

This system isn't just about steady power; it can ramp up the output to 500 MW when peak demand strikes. American Nuclear Society states that initial plans will target deployment in Texas and the Rocky Mountain region, areas where local grids are already feeling the pressure.

Chris Levesque, TerraPower's CEO, said that the partnership is meant to address the fast-changing energy landscape driven by digital demand. Similar strategies have been observed among other tech giants.

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For example, Microsoft MSFT recently secured a deal that will restart a reactor at Three Mile Island, while Google and Amazon AMZN are also investing in advanced reactor projects.

Yet, the picture isn't entirely clear-cut. Dr. Emily Carter, Princeton University professor and an energy expert, cautions that advanced reactors still face significant obstacles. "Long term, fusion reactors may provide baseload power the world over with a much smaller land footprint, but many science and engineering problems must be overcome first," she said.

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Critics argue that renewable energy solutions—like solar paired with battery storage—might offer a more flexible and less contentious way to meet soaring energy demands. Goldman Sachs highlights nuclear power’s reliability but notes permitting, labor, uranium, and timeline challenges limit its scalability for data centers.

Environmental advocates also point to issues such as uranium mining and waste management, which could offset the low‑carbon benefits of nuclear power. Proponents, however, insist that the Natrium design's innovative features could help mitigate many of these risks.

With data center power consumption expected to double globally between 2022 and 2026, according to Statista. Meanwhile, McKinsey projects that global demand for AI-ready data center capacity will grow by 33% annually through 2030, finding a stable, low‑carbon power source is becoming more critical than ever.

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