Artificial intelligence is fueling faster and better organizational intelligence. Its helping business leaders navigate the complexities of the world in new and innovative ways. However, these gains arent without growing pains. AI is also straining the energy grid. Over the coming years, its role in consuming global energy will rise by 26% to 36% annually.As companies seek to boost energy availability, control costs and meet ambitious climate targets, the concerns -- and real-world problems -- multiply. Although renewables such as solar and wind now play a key role in supplying power, consumption continues to outstrip energy growth.The answer? Large enterprises -- including tech firms that require enormous amounts of energy to keep data centers running -- are turning to nuclear power. It can play an important role in supplying energy and supporting decarbonization, says Jennifer Gordon, director of the Nuclear Energy Policy Initiative at the Atlantic Council, a non-partisan think tank.Adds Martin Stansbury, US Power, Utilities & Renewables Risk & Financial Advisory Leader at Deloitte: As demand for energy grows and reliable clean energy becomes the focus, nuclear is an appealing option.Google, Microsoft, AWS, Meta and others have recently announced a spate of projects that incorporate nuclear power. This includes building or restarting conventional reactors, and developing energy systems based on advances in small modular reactors (SMRs) and microreactors that can operate at a site or facility.Related:There is an increased interest in pursuing a low-carbon grid thats resilient, reliable and affordable, states John F. Kotek, Senior Vice President of Policy Development at the Nuclear Energy Institute (NEI). This is leading people to take a fresh look at nuclear power. It can help companies build a more efficient energy infrastructure.Nuclear Charges ForwardThe enormous growth of data centers -- fueled by digitalization and AI -- is fundamentally changing the stakes for companies large and small. Consulting firm McKinsey & Company reports that data center operations will more than double their energy requirements to 35 gigawatts from 2022 to 2035. The US Department of Energy notes that overall electricity demand could double by 2050.Unlike wind and solar, nuclear delivers a consistent source of carbon-free energy. In fact, it has the highest capacity factor of any energy source, at 92%, according to the US Department of Energy. Thats about double natural gas and coal, and about three times more reliable than wind and solar. Nuclear facilities also require relatively little land and fuel, and advances in storage have made it safer to handle radioactive waste.Related:At present, 94 licensed reactors operate in the US. They produce about 20% of US electrical output. Yet, in recent months, Google, Microsoft, Amazon and others have pivoted to nuclear. Microsoft, for example, is reopening the former Three Mile Island facility in Pennsylvania. Renamed as the Crane Clean Energy Center and costing about $1.6 billion, it is slated to go back online in 2028. It will deliver 835 megawatts (MW) of continuous electricity to operate its data centers and cloud computing infrastructure.Meanwhile, Google signed a deal with startup Kairos Power in October 2024 to build a series of small modular reactors (SMRs) for data centers and other facilities. Google aims to have these systems fully operational by 2030. The same month, Amazon announced that it is investing in SMRs. It is working with a company called X-Energy as well as public utilities Energy Northwest and Dominion Energy to boost capacity by 2030.Positive ReactionsThis isnt your grandfathers nuclear power technology. SMRs can deliver up to 300 megawatts of continuous power, which is ideal for a data center or manufacturing facility that relies on robotics and other energy-intensive equipment. Different companies tap different technologies to power the reactors, which include Light Water Reactors (LWRs), Molten Salt Reactors (MSRs), High-temperature Gas-Cooled Reactors (HTGRs) and Lead-Cooled Fast Reactors (LFRs).Related:In fact, SMRs deliver a level of flexibility that conventional energy sources cannot. You can position a system inside or close to a data center and not only have a major source of carbon-free power but also greater resiliency, says Gillian Crossan, Advisory Principal and Global Technology Leader at Deloitte. In the event of a weather-related disruption or other event you can continue to operate.Another thing that makes SMRs attractive is an array of enhanced safety features. This includes a smaller core size that reduces heat and radiation, lower operating pressures, and a simplified design that uses fewer pumps and valves. These systems also offer passive cooling that requires no human intervention in the event of an accident or emergency. Automated safety is built into these systems, Stansbury says.Another type of nuclear power system, ultra-compact microreactors can generate up to 20 megawatts of continuous power. Its possible to transport these systems by train or truck to a temporary site or facility, such as a mine or remote construction site. The technology can also dial up power for a data center or manufacturing site that would otherwise go offline during a hurricane, earthquake or other emergency.Fueling ProgressAt present, about 150 small modular reactors are in development around the world, according to Deloitte. Most wont be fully operational for the next five to seven years. This isnt a wait-and-see proposition. Companies need to start planning for their future energy requirements and capacity, Stansbury says. You have to determine whether or not you want to dip your toes into the SMR space.Nuclear energy wont displace or replace renewables, it merely complements them, Kotek says. Nuclear power unlocks a lot of opportunities. One of the biggest advantages for companies that use small modular reactors and micro reactors is that you dont have to build a single large reactor. You can use dozens of these systems in a very flexible way and assemble them at sites as needed.Of course, nuclear power isnt without challenges. SMRs could increase nuclear waste output. Theyre also expensive to build and subject to frequent cost overruns, partly due to complex and inconsistent regulations, the US Department of Energy notes. Finally, there are concerns about how SMRs and other onsite energy sources could impact the overall grid. Nuclear power could help bring stability to the grid but theres still going to be the need for regulation, Stansbury says.For companies considering a nuclear future, Kotek recommends studying the different types of SMRs and microreactors and understanding whats the best fit. Theres a learning curve associated with these technologies, he says. Organizations that build internal expertise are able to scale up the technology over time and generate more dependable energy and better returns.Concludes Gordon: As companies seek out always-on energy thats fully decarbonized, nuclear stands out. It alone cant solve the energy problem but its emerging as a key part of a balanced energy framework.