A federal study says restarting retired reactors could power America’s data centers within a decade

A federal research effort has concluded that nuclear power, including the revival of recently shuttered reactors, could realistically supply a large share of the electricity that America’s fast-growing data centers will need by the early 2030s. The analysis, led by scientists at a U.S. Department of Energy national laboratory and published in a department report, frames nuclear generation as a technically viable way to deliver the constant, round-the-clock power that server farms demand. It arrives as the surge in artificial-intelligence computing has pushed projected electricity demand from data centers sharply upward.

Who conducted the analysis

The study was carried out by researchers at Argonne National Laboratory, working with Idaho National Laboratory and Oak Ridge National Laboratory, three institutions within the Department of Energy’s network of research centers. Their findings were published in a departmental report and summarized in a public writeup, and the team examined several ways that reactors and data centers could be paired, from grid-connected arrangements to setups in which a computing campus is built directly next to a plant.

According to the Argonne summary of the work, the researchers looked at five distinct models for connecting nuclear plants with data centers, each carrying its own mix of cost, reliability and siting considerations. The central appeal of nuclear generation, the team argued, is its ability to run continuously, matching the always-on nature of the facilities that power email, streaming and AI services.

The scale of the demand the study is trying to meet

The researchers observed that U.S. data-center electricity demand is expected to grow enormously, potentially requiring up to 85 gigawatts of reliable power by the end of the decade. A gigawatt equals one billion watts, roughly enough to power a medium-sized city, so the projected increase represents a substantial addition to the nation’s generating needs. The study put the expected total growth in data-center demand at 24 to 74 gigawatts by 2028.

To meet a demand of that magnitude with nuclear energy, the team estimated that between 27 and 85 gigawatts of nuclear capacity would need to be available. Not all of that could plausibly be dedicated to data centers, and the researchers concluded that a more realistic figure is roughly 20 to 28 gigawatts of nuclear capacity devoted to computing facilities by the early 2030s. The underlying Department of Energy report lays out the assumptions and scenarios behind those ranges.

Three pathways, including reviving retired reactors

The analysis identified several routes to add the necessary capacity. One is restarting reactors that were closed relatively recently, often for economic rather than safety reasons, and that could be returned to service faster than building new plants from scratch. A second is signing power purchase agreements with the existing nuclear fleet, effectively reserving output from operating plants for data-center customers. The third is new construction, including a fresh generation of designs.

Each pathway carries trade-offs. Reviving a shuttered reactor avoids the multiyear timelines and high upfront costs of new construction, but it requires extensive inspection, refurbishment and federal approval before the plant can run again. Power purchase agreements can move quickly but do not add new generation to the grid; they redirect existing supply. New builds add capacity but take the longest and cost the most.

Small modular reactors and existing sites

Beyond restarts and conventional plants, the study pointed to advanced options such as small modular reactors, which are a fraction of the size of a traditional nuclear plant. Their smaller footprint, potential for onsite assembly and lower upfront investment make them appealing to data-center operators looking for dedicated power without committing to a full-scale plant. The Department of Energy has separately outlined both the advantages and the challenges of pairing nuclear generation with data centers, including construction timelines, regulatory hurdles and water availability.

The researchers also emphasized the value of reusing existing infrastructure. Retired coal plant sites and current nuclear locations already have grid connections, water access and, in many cases, a trained workforce nearby, which can lower the cost and shorten the timeline of co-located projects. Suitable sites, the team found, exist in every U.S. state when both nuclear-siting criteria and data-center requirements are considered.

The economic case and the obstacles

The study framed the pairing as an economic opportunity for the communities that host it. Both data centers and nuclear plants are significant sources of jobs and tax revenue, and combining them could multiply those benefits; the researchers estimated that a one-gigawatt data center connected to a nuclear plant could create roughly 1,700 operational jobs while supporting thousands more in the surrounding economy, with urban areas seeing larger gains than rural ones.

Those benefits come with real hurdles. The analysis flagged lengthy construction schedules, regulatory review, water needs and high capital costs as the main challenges, and it stressed that overcoming them would require close cooperation among policymakers, technology companies and the nuclear industry. The Department of Energy has already begun supporting such projects by offering federal land at several sites for combined data-center and energy developments.

Where the research goes next

The study’s authors described their work as a starting point rather than a finished blueprint. The next phase is expected to dig into questions the initial analysis left open, including fuel requirements, detailed economic and social feasibility, refined siting options and specific case studies. The stated goal is a framework that would let the digital economy expand without outrunning the reliable, low-carbon power it depends on. For a country weighing how to feed an explosion in computing demand, the report offers a measured conclusion: reviving retired reactors and leaning on existing nuclear infrastructure is one of the more plausible near-term ways to deliver steady power to data centers within the coming decade, provided the regulatory and financial obstacles can be cleared.

This article was produced with the assistance of AI and reviewed by Morning Overview editors prior to publication.

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