September 12, 2024 Oracle co-founder Larry Ellison revealed the company’s plan to power a future data center using small modular nuclear reactors (SMRs), reflecting the growing energy demands driven by AI technologies.
SMRs are part of a next-generation energy solution that promises reliability and carbon-free power, aligning with the rising electricity demands of the tech industry. These reactors are smaller and, according to proponents, safer. Additionally, many components can be prefabricated and assembled on-site, reducing capital costs and speeding up construction.
However, SMRs remain largely unproven, which prompted Ellison’s remark during a briefing to industry analysts: “Let me say something that’s going to sound really bizarre. Well, you’d probably say, well, he says bizarre things all the time, so why is he announcing this one? It must be really bizarre.”
Ellison further emphasized the increasing energy demands and the need for novel solutions, stating, “This is how crazy it’s getting. This is what’s going on,” in reference to the project’s requirement for over a gigawatt of power.
Oracle is not the first U.S. company to champion SMRs; Microsoft is also exploring the technology. However, Oracle’s reactors would be the first to be built and operated in the U.S. Currently, only three SMRs exist worldwide—two in China and Russia, and a third test reactor in Japan.
Ellison is pushing forward on the concept, stressing the critical need for sustainable energy sources. While Oracle has not revealed the location of the new data center, he did state that the building permits had been obtained.
