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As AI booms, land near nuclear power plants becomes hot real estate

Mar 26, 2024 - news.bensbites.co
Startup NE Edge is seeking approval to build two AI datacenters next to a 2GW Millstone nuclear power plant in Waterford, Connecticut. The company has secured $1.6 billion for the project, which will span 1.2 million square feet and house between 25,000 and 35,000 servers. However, local residents are concerned that the project, which will consume up to 13% of the plant's output, could increase electricity costs. NE Energy has committed to paying a 12.08% premium to the town on top of what it pays Dominion for power, along with other payments said to total more than $1 billion over the next 30 years.

Meanwhile, other datacenter operators are also exploring nuclear power options. Amazon Web Services (AWS) has agreed to purchase Cumulus Data's atomic datacenters for $650 million, which are colocated with the 2.5 gigawatt Susquehanna nuclear power plant in northeast Pennsylvania. Microsoft is looking into the use of small modular reactors (SMRs) to power existing datacenters. Other companies exploring SMRs include Standard Power, Green Energy Partners, and Bahnhof.

Key takeaways:

  • Startup NE Edge is seeking approval to build a pair of AI datacenters adjacent to a 2GW Millstone nuclear power plant in Waterford, Connecticut, arguing that nuclear power is a reliable and carbon-free energy source.
  • NE Energy has secured $1.6 billion for the project, which will span 1.2 million square feet and include between 25,000 and 35,000 servers.
  • Local residents have expressed concerns about the project potentially increasing the cost of electricity, as the facilities are expected to consume up to 13 percent of the plant's output.
  • Other datacenter operators, including Amazon Web Services and Microsoft, are also exploring the use of nuclear power for their operations, with Microsoft looking into the use of small modular reactors (SMRs).
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