The Push for Nuclear Power in the Age of AI

Reopening Palisades Nuclear Power Plant: A Strategic Response to Growing Energy Demands

Table of Contents

• Artificial Intelligence & Energy Consumption
• Reopening the Palisades Nuclear Power Plant
• Investment & Timeline
• Current Progress
• Planned SMR Additions

The rapid rise of artificial intelligence (AI) and data centers is driving an unprecedented surge in global energy consumption. According to the International Energy Agency (IEA), data centers are projected to account for one-third of new energy demand in the U.S. through 2026. Worldwide, electricity consumption by data centers is expected to more than double by 2026, reaching a staggering 1,000 terawatt-hours—equivalent to Japan’s total electricity consumption.

Michigan's Bold Move: Bringing Back a Nuclear Plant from the Dead

In response to this burgeoning demand, Michigan is taking a bold step by reopening the Palisades Nuclear Power Plant. Initially shut down in May 2022, Palisades is set to make history as the world’s first decommissioned nuclear power plant to restart, according to The Wall Street Journal. This decision marks a significant departure from the global trend of permanently closing older nuclear facilities.

Investment & Timeline

The plan to restart Palisades is supported by a substantial $2 billion investment, combining federal and state resources. The U.S. Department of Energy has committed up to $1.52 billion through a conditional loan, while the state of Michigan has also contributed significant funding. Holtec International, the plant’s new owner, is targeting a restart by end of 2025.

Progress and Workforce

As of August 2024, significant progress has been made:

• Training and Staffing: Over 470 employees are currently on site, with 240 new hires in 2024, including 26 former licensed operators who have requalified their NRC operating licenses.
• Training Accreditation: The plant has received initial accreditation from the National Nuclear Accreditation Board for its training programs, with final approval anticipated in 2025.

Technical & Safety Upgrades

• Chemical Cleaning: A major chemical cleaning of the primary coolant system was completed in July 2024, significantly reducing background dose rates.
• System Inspections: Ongoing inspections of the reactor vessel and steam generator cleaning are in progress to ensure safety and efficiency.

Future Prospects & the Role of Small Modular Reactors (SMRs)

Looking ahead, Holtec plans to enhance the plant’s capacity by adding two small modular reactors (SMRs), potentially increasing output by 600 megawatts. Construction permit applications for these SMRs are expected to be filed in 2026.

• Development Status: The first SMR design by Oregon-based NuScale Power received approval from the U.S. Nuclear Regulatory Commission in 2020.
• Industry Interest: Major tech companies, including Microsoft, are exploring SMRs to power their data centers. Microsoft’s plans involve potentially using SMRs for AI data centers, although regulatory and technical challenges remain.

Nuclear power plants are a key solution to rising energy demands due to their high energy output, low greenhouse gas emissions, and reliable, stable power supply. They can efficiently meet the large electricity needs of AI and data centers while complementing renewable energy sources and supporting long-term energy security.

The reopening of the Palisades Nuclear Power Plant represents a strategic response to the escalating energy demands driven by AI and data centers. By reinvesting in nuclear power and incorporating advanced technologies like SMRs, Michigan is positioning itself at the forefront of sustainable energy solutions, addressing both current and future energy needs.