Artificial intelligence (AI) operations could consume as much energy as 22% of American households combined by 2028.
Nuclear power is one way to help meet AI’s growing electricity needs, and companies like Microsoft are investing heavily in it.
Constellation Energy is America’s largest nuclear energy producer and is very well-positioned to profit from AI infrastructure spending.
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Most of the investment talk about artificial intelligence (AI) infrastructure is focused on semiconductor chips for high-end computer servers or the data centers that will house those servers. I think the bigger AI infrastructure need is more indirectly tied to computers.
I’m talking about energy.
AI is an absolute glutton for electrons. The Guardian reported in August last year that OpenAI’s latest model GPT-5 potentially consumes in one day enough energy to power 1.5 million American homes for a day. And those power needs are growing. MIT Technology Review reports that by 2028, AI alone could consume as much electricity annually as 22% of all U.S. households.
Image source: Getty Images.
It’s a serious infrastructure problem, as we would like to meet those electrical needs without producing vast amounts of pollution. One solution is nuclear power.
The technology industry is well aware of that, which is why Constellation Energy (NASDAQ: CEG), America’s largest carbon-free energy producer, has partnered with Microsoft (NASDAQ: MSFT) to resurrect a nuclear plant in Pennsylvania for the express purpose of powering data centers.
Based in Baltimore, Maryland, Constellation is not only America’s largest green energy producer — it’s the country’s largest producer of nuclear energy as well. So it made for an obvious partner for Microsoft in its bid to power its data centers with as little pollution generated as possible.
Nuclear is efficient and comparatively clean, and can generate immense amounts of power. That’s what makes it so great for data center use. The Crane Clean Energy Center that…
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