The UK-US Tech Deal: Powering AI Targets with Nuclear Energy

A bilateral trade agreement between the US and UK governments, named the Tech Prosperity Deal, aims to support the United Kingdom's ambitions in AI.

The accord was publicised by UK Prime Minister Keir Starmer and US President Donald Trump during his state visit.

Major technology companies like Google, Nvidia and Microsoft have made substantial commitments to the country's technological future as part of this deal.

AI energy consumption prompts nuclear focus

An underreported aspect of this development is the energy infrastructure required to power the UK’s new AI systems.

The AI sector is power-intensive with data centres consuming large amounts of energy and water to accommodate the necessary computing levels.

The UK government has begun to consider this, proposing that nuclear power could provide a steady and sustainable supply of energy for its emerging AI infrastructure.

The link between the energy needs of AI and nuclear power is something both the US and UK governments have acknowledged.

Chris Wright, the US Energy Secretary says that America has been looking to commercial nuclear power to "fuel the AI revolution".

He adds that "Meeting this demand will require strong partnerships with our allies around the world and robust collaboration with private sector innovators".

The energy requirements for AI data centres are substantial.

According to the IEA data centres are projected to consume 945 terawatts of energy annually, which is a similar level to Japan's yearly demand.

This consumption is expected to increase as AI becomes more integrated across various industries.

Traditional renewable sources such as solar and wind currently face challenges in providing the consistent baseload power that AI operations require.

This leaves fossil fuels or nuclear energy as the available alternatives.

With global net zero deadlines approaching nuclear energy is becoming a more prominent part of the energy conversation.

"We’re kickstarting a golden age of nuclear in this country, joining forces with the US to turbocharge new nuclear developments and secure the technologies of the future," the UK's Energy Secretary, Ed Miliband.

Powering data centres with nuclear projects

Major developments for AI applications are emerging from companies like Holtec, EDF Energy and property developer Tritax.

Their US$11bn project at the former Cottam coal-fired power station in Nottinghamshire will specifically aim to power advanced data centres using small modular reactors.

This project is one of the first major initiatives in the United Kingdom explicitly designed to meet the energy needs of the AI sector.

In a similar move Last Energy's partnership with DP World will concentrate on developing micro-modular nuclear plants for the London Gateway port and business park.

The UK-US Atlantic Partnership for Advanced Nuclear Energy promises to streamline regulations, aiming to halve licensing times to around two years.

Both nations will accept each other's safety assessments, which could eliminate bureaucratic duplication that has historically slowed down nuclear deployment.

This streamlined process could be crucial for AI companies that need to expand their computational capacity quickly.

Keir Starmer described the agreement as a "landmark nuclear partnership" that would power economic growth.

The Prime Minister says the commitments would set Britain "well on course to a golden age of nuclear that will reduce household bills in the long run, while delivering thousands of good jobs in the short term".

Economic impacts and energy security

The industrial strategy extends beyond immediate power generation.

Centrica's partnership with X-energy to build up to 12 advanced modular reactors in Hartlepool could create 2,500 jobs in the North East of England.

The Nuclear Industry Association reports that the sector has already added 11,000 jobs this year, which supports the idea that sustainability initiatives can lead to employment growth.

Tom Greatrex, CEO of the Nuclear Industry Association, says that these transatlantic deals promise to contribute to the sector's "industrial revival, creating thousands of high-value jobs, and strengthening the UK's energy security".

By expanding its nuclear portfolio the British government is looking to address energy security and industrial capacity which are two key challenges for its AI ambitions.

By 2028 the new reactors could provide up to 6GW of power across the country matching the UK's current total nuclear output.

The deals also include a goal to eliminate dependency on Russian nuclear material by 2028 which could reduce geopolitical risks in critical infrastructure.

Britain's success in the global AI race may depend on whether these nuclear projects deliver the promised power capacity on schedule.