The UK-US Tech Prosperity Deal: How Nuclear will Fuel AI
A major trade agreement between the US and UK governments is beginning, known as the Tech Prosperity Deal, has been announced.
The deal was publicised by UK Prime Minister Keir Starmer and US President Donald Trump during a joint press conference as part of the president’s state visit.
While the agreement is set to support the UK's ambitions in artificial intelligence with large commitments from companies like Google, Nvidia and Microsoft, it brings the UK’s energy infrastructure into sharp focus.
Nuclear power and AI data centres
AI is an energy-intensive sector, with its data centres consuming vast amounts of power to handle the required levels of computing.
The UK government has already begun to factor this into its strategic planning, identifying nuclear power as a potential source for the steady and sustainable energy supply that new AI systems will require.
The link between the energy requirements of AI and nuclear power has been acknowledged by both the US and UK governments.
Chris Wright, the US Energy Secretary, says that America has been looking to commercial nuclear power to "fuel the growth of AI".
"Meeting this demand will require strong partnerships with our allies around the world and robust collaboration with private sector innovators," Chris says.
The power needed for AI data centres is substantial.
According to the IEA, data centres are projected to consume 945 terawatts of energy annually, an amount comparable to Japan's yearly demand.
This consumption is expected to rise as AI becomes more integrated across various industries.
Current renewable sources, such as solar and wind, face challenges in providing the consistent baseload power that AI operations need.
This leaves fossil fuels or nuclear energy as the available alternatives.
With global net zero targets approaching, nuclear energy is likely to become a more central part of energy strategy discussions.
"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," says the UK's Energy Secretary, Ed Miliband.
Targeting the data centre market
A key development for AI applications involves a US$11bn project by Holtec, EDF Energy and property developer Tritax.
This project, at the site of the former Cottam coal-fired power station in Nottinghamshire, is designed to power advanced data centres using small modular reactors.
This is one of the first major initiatives in the United Kingdom specifically aimed at meeting the energy demands of the AI sector.
In a similar vein, Last Energy's partnership with DP World will establish micro-modular nuclear plants for the London Gateway port and business park.
The UK-US Atlantic Partnership for Advanced Nuclear Energy aims to halve licensing times to around two years.
By mutually recognising each other's safety assessments, both countries can remove bureaucratic hurdles that have historically slowed the deployment of nuclear facilities.
This streamlined process could be critical for AI companies that need to expand their computational capacity quickly.
Economic growth and energy security
Keir Starmer described the agreement as a "landmark nuclear partnership" that would power economic growth.
The Prime Minister says that 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".
The industrial strategy also includes job creation.
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.
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 2028, the new reactors could provide up to 6 GW of power, matching the UK's current total nuclear output.
The deals also intend to end reliance on Russian nuclear material by 2028, reducing geopolitical risks associated with critical infrastructure.
