Good morning. Welcome to today’s Energy Subcommittee hearing titled, “Powering Demand: Nuclear Solutions for AI Infrastructure.” With artificial intelligence's rapidly growing demand on our power grid, this hearing will examine the U.S. energy landscape and its capacity to meet that need. In light of recent announcements around the country, we will focus on nuclear energy’s role as a baseload power source. We will also review the Department of Energy’s research, development, and demonstration programs supporting the next generation of nuclear reactors.
Much like the 1940s, when America stood at the dawn of the atomic era, we now stand on the threshold of a new age driven by artificial intelligence. With promises of increased efficiency and productivity, AI has the potential to revolutionize every aspect of our economy and way of life. Unsurprisingly, this potential has spurred a major influx of private capital aiming to turn these promises into reality.
Additionally, this technology is poised to dramatically transform our electric grid and energy sector due to the construction of new AI data centers. According to a recent report from a leading consulting company, data centers are projected to consume 5.2% of U.S. electricity this year, with that share expected to increase to 11.7% by 2030. Their energy use would rise from 25 GW to 80 GW. To put that in perspective, 1 GW of energy equates to roughly 294 utility-scale wind turbines, 1.8 million solar panels, 103 offshore wind turbines, or one large light-water nuclear reactor.
Due to these immense energy demands, major technology companies and hyperscalers, who traditionally sat on the energy sidelines, are now climbing into the driver’s seat to secure their long-term power supply. Nuclear has emerged as the ideal energy source given its clean baseload power and unmatched reliability. Nuclear’s capacity factor of 92.5% is the highest of any energy source. That level of reliability is essential for data centers, which can afford no more than 5.25 minutes of downtime annually.
As a result, tech companies are making substantial investments and forging strategic power purchase agreements with nuclear designers. For instance, Amazon invested over $300 million in X-Energy, Google signed a 500 MW power purchase agreement with Kairos Power, and Switch secured up to 12 GW from Oklo, which is one of our witnesses here today. This led Constellation Energy, another witness here today, to partner with Microsoft to recommission a nuclear reactor at Three Mile Island.
In addition to investments and partnerships, tech firms are also redesigning interconnection agreements. Traditionally, data centers relied on front-of-the-meter interconnection agreements, in which a utility generates, transmits, and distributes energy to the end user. Now, tech companies are pursuing behind-the-meter agreements, where energy assets directly power the data center. This approach reduces transmission costs, streamlines the approval processes, and provides greater operational control to the end user.
Last year, Talen Energy sold Amazon a data center and agreed to a behind-the-meter power agreement supplying up to 480 MW from its Susquehanna nuclear power plant. Although FERC blocked this specific agreement, I believe back-of-the-meter interconnection agreements will be commonplace when constructing new nuclear power plants.
As the nuclear and tech sectors deepen their collaboration, the Department of Energy’s (DOE) Office of Nuclear Energy plays a crucial role in AI’s future success. The office manages the Advanced Reactor Demonstration Program, which helps commercialize new nuclear technologies, including X-Energy’s Xe-100 reactor. Just recently, Dow and X-Energy submitted their construction permit application for a proposed project in Sea Drift, Texas, right next to my district.
DOE also manages the Nuclear Fuel Security Program and the Advanced Nuclear Fuel Availability Program, both created under the Energy Act of 2020. These initiatives are critical to deploying next-generation reactors that rely on high-assay low-enriched uranium (HALEU) fuel. DOE recently announced it will provide HALEU to X-Energy, Kairos Power, Radiant Industries, Westinghouse, and TerraPower. In tandem, the Trump Administration has accelerated the deployment of AI through recent executive orders.
In April, DOE issued a Request for Information (RFI) soliciting feedback on whether industry would be interested in using federal land at DOE sites to host AI data centers. Given the strong support for DOE and its nuclear security missions, these sites are perfect for hosting data centers powered by nuclear reactors.
From the atomic bomb to artificial intelligence, DOE’s labs have consistently stood at the precipice of technological advancement. They continue to meet generational challenges and drive innovations that strengthen America as we enter this new era.
I look forward to our discussion here today and yield back the balance of my time.