Oracle to Power AI Data Center with Small Modular Nuclear Reactors

Oracle has announced plans to power its upcoming AI data center with three small modular reactors (SMRs). The company, which has already secured permits to build these reactors, intends to use them to support a new data center with at least a one-gigawatt capacity. The news was revealed during Oracle’s quarterly earnings call, where CTO Larry Ellison emphasized the importance of green energy solutions for powering Oracle’s expansive network of cloud data centers.

What Are Small Modular Reactors (SMRs)?

SMRs are compact nuclear reactors, similar in size to those used on naval vessels such as submarines and aircraft carriers. However, since these reactors are not restricted by the space constraints of warships, they can be mass-produced at a lower cost. Their modular design offers the potential for more efficient and affordable operation compared to traditional nuclear plants.

While SMRs hold promise as a green energy source, Oracle still faces challenges in gaining approval for operating the reactors. Despite securing permits for construction, public concerns over nuclear power—amplified by incidents like Chernobyl and Fukushima—remain a significant hurdle. In addition to safety concerns, security risks related to nuclear material management are also under consideration.

Oracle’s Growing Network of Data Centers

With a vast global presence, Oracle currently operates 162 cloud data centers worldwide, including facilities under construction. The company’s largest data center to date has an 800-megawatt capacity, housing acres of Nvidia GPU clusters capable of training some of the most complex AI models in existence. The planned AI data center, powered by SMRs, is expected to exceed one gigawatt, marking a significant step forward in Oracle’s data infrastructure.

As energy consumption is one of the largest expenses for Oracle’s data centers, the company is eager to explore innovative, green energy solutions. SMRs could provide a sustainable and cost-effective alternative to traditional power sources, aligning with the growing focus on reducing carbon footprints and mitigating climate change.

Nuclear Power: A Growing Trend in Tech

Oracle is not the only company exploring nuclear energy as a power source for data centers. Microsoft has also shown interest in developing a nuclear strategy, although Oracle has taken a more concrete step forward by securing the necessary building permits. Despite this progress, the deployment of SMRs is expected to take several years, with the earliest estimates placing their operational start date in the early 2030s.

In the meantime, data centers will continue relying on other energy sources as companies like Oracle explore sustainable, long-term solutions for powering the ever-increasing demands of AI technologies.