Oracle will use three small nuclear reactors to power new 1-gigawatt AI data center

Oracle has secured the permits to build three small modular reactors (SMRs) to power its AI data center. During its quarterly earnings call, the company said (via The Register ) that it plans to use those tiny nuclear plants for a planned AI data center with at least one-gigawatt capacity.

SMRs are miniaturized reactors similarly sized to those used on naval vessels like submarines and aircraft carriers. However, since they do not have to be built inside the cramped space of a warship, SMRs do not have to be customized to the needs of a particular vessel. This means Oracle could find a supplier to mass produce it for them at a lower cost than the Navy. Furthermore, an SMR’s modular design means that it should, in theory, be cheaper to operate, especially as it no longer has the massive infrastructure often associated with traditional nuclear power plants.

However, there’s still the question of whether the surrounding area where Oracle plans to deploy its SMRs would allow it. After all, nuclear power plants have this stigma about them, especially after the highly publicized meltdowns at Chernobyl and Fukushima, Japan. Besides, securing the permits to build SMRs is likely different from getting the green light to operate them. Aside from safety concerns, Oracle would also need to contend with security issues, especially as nuclear material is hazardous, especially if it falls into the wrong hands.

Nevertheless, Oracle is likely keen on getting this project up and running. “Oracle has 162 cloud data centers, live and under construction worldwide. The largest of these data centers is 800 megawatts, and it will contain acres of Nvidia GPU clusters able to train the world’s largest AI models,” says Oracle founder, executive chairman, and CTO Larry Ellison during the call. “Soon, Oracle will begin construction of data centers that are more than a gigawatt.”

With this vast number of data centers, one of Oracle’s most significant expenses is likely electricity. With global warming and the carbon footprint on many people’s minds, the company needs to find economical sources of green energy—something that an SMR could potentially deliver.

Oracle isn’t the first company to look into nuclear power, as Microsoft has reportedly begun searching for a critical figurehead for its nuclear strategy. Nevertheless, the former has taken the next step in acquiring building permits. But don’t expect to see tiny nuclear reactors popping up around the country next year just yet. After all, it will take years before a nuclear power plant, even a tiny one, can go from a hole in the ground into a fully functional electrical source. The Register even said that the most optimistic estimates for when SMRs will begin deployment are in the early 2030s — some seven to ten years from now. In the meantime, data centers would have to find other energy sources to power their AI dreams.