Oracle chairman and co-founder Larry Ellison made an unexpected announcement this week, revealing the company’s ambitious plans to build a data center powered by small nuclear reactors. The move is driven by the increasing energy demands of artificial intelligence, which Ellison described as “crazy.” Speaking during Oracle’s earnings call on Monday, Ellison explained that next-generation nuclear technology would be the solution to meeting this growing demand.
Ellison’s remarks to investors highlighted the unusual nature of the plan, noting, “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.” He then disclosed that Oracle’s new data center would require more than a gigawatt of electricity and would be powered by three small modular nuclear reactors.
While the exact location of the data center and reactors was not disclosed, Ellison mentioned that the site already has building permits for the nuclear reactors. He emphasized the scale of the project by saying, “This is how crazy it’s getting. This is what’s going on.” The company has not yet provided further details, and CNBC has reached out to Oracle for comments.
Small modular nuclear reactors (SMRs) are a relatively new technology that offers the potential for reliable, carbon-free energy. They are especially attractive for industries facing rising power demands, such as data centers and manufacturing. Unlike traditional nuclear reactors, which generate about 1,000 megawatts or more, SMRs are much smaller, typically producing 300 megawatts or less. This smaller size allows the reactors to be prefabricated in sections and then assembled on-site, which significantly reduces capital costs compared to larger nuclear plants.
Although SMRs promise a breakthrough in energy production, they are still in the early stages of commercialization. Nuclear industry experts generally agree that SMRs won’t be widely available in the United States until the 2030s. Currently, there are only three operational small modular reactors in the world. Two are located in China and Russia, countries that are considered central geopolitical adversaries of the U.S. A test reactor is also operational in Japan, further emphasizing the emerging interest in the technology across the globe.
As AI technologies continue to advance, data centers are consuming unprecedented amounts of electricity. Oracle’s decision to explore nuclear power highlights the growing concern about how to sustainably meet the increasing energy demands. Nuclear power, particularly through SMRs, offers a potential solution by providing a steady and reliable energy source without producing carbon emissions.
While the full details of Oracle’s nuclear-powered data center project are yet to be revealed, the announcement signals a bold step towards a future where nuclear energy could play a key role in powering the tech industry. This development also raises broader questions about the role of advanced nuclear technologies in meeting the world’s energy needs, especially as demand rises from sectors like data centers and the electrification of economies. The project will likely face regulatory and technological challenges in the coming years, but it represents a significant shift in how companies like Oracle are thinking about sustainable energy solutions.
