New Mission for Nuclear Energy and AI in the U.S.

Over 80 years after the Manhattan Project’s groundbreaking use of atomic energy, there’s a fresh endeavor underway in the U.S. to manage artificial intelligence (AI) and maintain a competitive edge against China. This time, it’s focused on uranium enrichment, with a new facility recently opened in Oak Ridge, Tennessee.

The first phase of this uranium enrichment facility launched in May, an important step since uranium powers nuclear reactors—an energy source that AI data centers increasingly need. Jean-Luc Palayer, CEO of Orano USA, pointed out, “The more advanced AI becomes, the more energy it requires.”

Palayer emphasized, “The U.S. can only lead with AI if it can power it. With our new enrichment project in Oak Ridge, we aim to advance our mission of equal outcomes.” A number of Tennessee lawmakers participated in a ribbon-cutting ceremony to inaugurate the facility.

According to the U.S. Energy Information Agency, almost all nuclear fuel is imported; about 99% of U.S. uranium products come from outside the country. Currently, the U.S. sources most of its uranium from Russia, Canada, Australia, Kazakhstan, and Uzbekistan. Although imports from Russia were banned in May 2024, there are exemptions available until 2028 for certain applications.

Tennessee’s Energy Concerns

Tennessee Governor Bill Lee expressed concern, stating, “The U.S. is on the brink of an energy crisis. Losing the AI battle to China or the energy struggle against Russia is not an option. To avoid that, we must lead a renaissance in nuclear energy right here in America.”

Recently, President Trump signed four executive orders targeting the development of domestic nuclear energy by 2050. This includes mandates for reporting on improving uranium processing and updating nuclear energy policies to facilitate production. There’s a goal for at least 10 large nuclear reactors to be under construction by 2030, according to the orders.

China’s Ambitious Nuclear Plans

In stark contrast, China is making plans to establish ten new nuclear reactors annually for the next decade, totaling around 100 reactors by 2035. This stands in sharp disparity to the U.S., which has only built three reactors in the last three decades, according to data from the National Energy Institute.

While China rapidly expanded its nuclear capacity in 2022, it still only contributed about 5% to its total energy generation that year. In comparison, nuclear energy accounts for around 18% of the U.S. generation mix.

Lee commented on the urgent need for action: “We can’t afford to wait a decade to build a nuclear reactor. That’s how long it takes to approve, license, and construct them. Meanwhile, China might build 150 in that same timeframe.”

As of 2023, the Department of Energy noted that data centers consumed roughly 176 TWh of energy, a figure expected to rise significantly, possibly reaching between 325 and 580 TWh by 2028. This means AI data centers could account for about 12% of the nation’s energy consumption within a few years, equivalent to the electricity needs of New York City for over a decade.