AI Boom Resurrects Nuclear Power as Japan's IHI Bets Big

Every ChatGPT query consumes as much electricity as charging your smartphone 10 times. As AI data centers multiply globally, an unexpected industry is experiencing a renaissance: nuclear power.

Japanese engineering giant IHI announced plans to invest 20 billion yen ($128 million) over three years to dramatically expand nuclear plant component production. The company is betting on surging demand for next-generation reactors driven by AI's voracious appetite for electricity.

When Silicon Valley Meets Uranium

This isn't just another industrial expansion story. IHI's move signals a fundamental shift in how the AI revolution is reshaping global energy markets.

Kansai Electric Power is already exploring construction of a next-generation reactor at its Mihama nuclear plant. After years of post-Fukushima decline, Japan's nuclear industry sees AI as its ticket back to relevance.

The math is compelling: traditional renewables struggle to meet AI's 24/7 power demands. Solar panels don't work at night, and wind turbines stop when the breeze dies down. But AI algorithms never sleep, creating an insatiable need for baseload power that nuclear reactors can reliably provide.

The Clean Energy Paradox

Here's where things get interesting. Big Tech companies have spent billions promoting their green credentials, pledging to power operations with renewable energy. Yet their AI ambitions are driving them straight back to nuclear power.

Microsoft recently signed a deal to restart Three Mile Island. Google and Amazon are exploring small modular reactors. The same companies that once distanced themselves from nuclear are now embracing it as their AI enabler.

This creates a fascinating paradox: the technology promising to solve humanity's greatest challenges requires massive amounts of electricity from a power source many consider controversial. Are we witnessing pragmatism trumping ideology, or simply the inevitable collision between AI dreams and energy reality?

Winners and Losers Emerge

For companies like IHI, the timing couldn't be better. Nuclear component manufacturers, uranium miners, and reactor designers are suddenly hot properties again. Traditional renewable energy companies might find themselves competing for a smaller slice of the data center pie.

Investors are taking notice. Nuclear stocks have surged as the AI-power connection becomes clearer. But this renaissance faces hurdles: regulatory approval processes remain lengthy, public opinion varies by country, and construction costs are substantial.