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The rapid rise in electricity demand from artificial intelligence (AI) data centres is emerging as a major factor behind the global revival of nuclear energy, according to a thematic report by Deven Choksey Research.
The report noted that AI-led power consumption, coupled with energy security concerns and decarbonisation goals, is pushing countries to reconsider nuclear energy as a reliable long-term power source. "AI data centers are projected to exponentially rise the energy demand to 1600 terra-watt hours by 2034," the report said. It added that global electricity demand is already rising at an annual rate of 3.3-3.7 per cent, driven by "AI compute, EV adoption and industrial electrification." The report further pointed out that the growing power needs of AI infrastructure are exposing the limitations of intermittent renewable energy sources such as solar and wind. "AI data centers requires power that is firm, dispatchable, always on and carbon free, wind and solar, by their intermittent nature cannot fulfil these requirements without expensive storage," the report said. The report highlighted that nuclear power plants operate at nearly 92 per cent capacity factor, significantly higher than renewable sources, making them more suitable for the uninterrupted electricity supply required by AI infrastructure. It further stated that global nuclear power generation reached a record high in 2025, driven by energy security needs and clean energy targets. "In 2025, global nuclear power generation reached its highest level in record history driven by energy security and zero emission goals," the report said. The report also noted that over 12 gigawatts of new nuclear capacity entered construction globally in 2025 alone. According to Deven Choksey Research, geopolitical tensions and supply disruptions have also accelerated the shift toward nuclear energy. "Russia's invasion of Ukraine in 2022 was the first shock. The subsequent conflict in the Middle East was the second," the report said, adding that Europe has been forced to rethink its earlier dependence on imported gas. The report said nearly 40 countries have now pledged to triple nuclear energy capacity by 2050 as governments increasingly view nuclear power as essential for both energy security and net-zero goals. "As of 2026, the EU commission has formally declared nuclear 'vital to EU energy security'," the report added. The report argued that nuclear energy is becoming increasingly important in the global power mix because of its ability to provide stable baseload electricity with low carbon emissions. "Nuclear's high-capacity factor and dispatch ability makes it an important technology for ensuring grid stability in an increasingly electrified and decarbonizing ecosystem," the report said. According to the report, India is also expected to play a major role in the sector's expansion, with the country targeting a sharp increase in installed nuclear capacity over the coming decades. (ANI)
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