AI Data Centers to Finance Nuclear Energy Investment

Developers look to build their own power plants to meet growing electricity demands

Mar. 15, 2026 at 12:26pm

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As AI data centers are projected to consume 12% of U.S. power by 2028, up from 2% prior to 2020, President Trump has proposed that tech companies be required to build their own power plants to meet their growing electricity needs. This would ensure the companies' ability to get electricity while lowering prices for the public. Several states are joining the president in this proposal, as intermittent renewables cannot fulfill the around-the-clock power requirements of data centers. Companies like Microsoft and Meta are looking to reopen or build new nuclear plants to power their facilities.

Why it matters

The growing electricity demands of AI data centers are straining the U.S. power grid, leading to potential shortages and higher costs for consumers. By requiring tech companies to self-finance their own power generation, the administration aims to ensure reliable 24/7 baseline power while reducing the burden on the public grid and electricity rates.

The details

President Trump has announced a 'rate payer protection pledge' that will require major tech companies to provide for their own power needs through self-financed generation, rather than drawing from the public grid. This includes building natural gas, clean coal, and nuclear power plants to meet the around-the-clock electricity demands of AI data centers, which are projected to consume 12% of U.S. power by 2028. Several states have joined the president in this proposal, as intermittent renewables cannot fulfill the baseline power requirements. Companies like Microsoft and Meta are exploring options to reopen retired nuclear plants or build new advanced nuclear facilities to power their data centers.

  • In his Feb. 24 State of the Union Address, President Trump announced the 'rate payer protection pledge'.
  • On May 23, 2025, President Trump issued four executive orders to quadruple U.S. nuclear generating capacity by 2050.
  • The first small modular nuclear reactor plant developed through a deal between Alphabet and Kairos Power is expected to come online by 2030.

The players

President Trump

The President of the United States who has proposed requiring tech companies to build their own power plants to meet the growing electricity demands of AI data centers.

Elon Musk's xAI

An AI company that is building natural gas plants in Tennessee to power its data centers.

Microsoft

A tech company that wants to reopen the retired Three Mile Island nuclear plant to power its data centers.

Meta

A tech company that has announced deals with advanced on-site nuclear startups to power its data centers.

Santee Cooper

A major power provider in South Carolina that is looking for buyers to restart two nuclear reactors that were mothballed years ago at the Virgil C. Summer Nuclear Station.

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What they’re saying

“Tonight, I'm pleased to announce that I have negotiated the new rate payer protection pledge. You know what that is? We're telling the major tech companies that they have the obligation to provide for their own power needs.”

— President Trump (State of the Union Address)

What’s next

The first small modular nuclear reactor plant developed through a deal between Alphabet and Kairos Power is expected to come online by 2030.

The takeaway

By requiring tech companies to self-finance their own power generation, the administration aims to ensure reliable 24/7 baseline power for AI data centers while reducing the burden on the public grid and electricity rates for consumers. This shift towards nuclear and other baseload power sources represents a pragmatic approach to meeting the growing electricity demands of the tech industry.