The UK-US Tech Prosperity Deal: AI to be Powered by Nuclear
This week, the US and UK governments have announced a ground-breaking bilateral trade agreement, known as the Tech Prosperity Deal.
The announcement of this landmark deal coincides with Donald Trump's state visit to the UK, and the US President and UK Prime Minister Keir Starmer publicised the accord on Thursday, in a joint press conference.
This deal is designed to support the UK's AI ambitions going forward, with high-profile companies including Google, Nvidia and Microsoft all making large commitments to the country's technological future.
Perhaps the most underreported aspect of this story, however, is the energy infrastructure that will be required to facilitate the UK's new AI systems.
AI, of course, is a power-hungry sector, with data centres consuming vaster amounts of energy and water than ever before to accommodate the levels of computing that the technology's growing popularity is demanding.
The UK has already begun considering this, though.
The government believes that nuclear power could provide the steady and sustainable supply of energy that its new AI systems will need.
Power-hungry AI drives nuclear renaissance
The connection between nuclear power and AI has been clear for some time now, to both the US and UK governments.
Chris Wright, the US Energy Secretary, says that America has been looking to commercial nuclear power to "fuel the AI revolution".
"Meeting this demand will require strong partnerships with our allies around the world and robust collaboration with private sector innovators," he adds.
The energy requirements for AI data centres are little short of staggering, with major facilities consuming hundreds of megawatts continuously.
According to the IEA, data centres will consume 945 terawatts of energy annually, which is equivalent to Japan's annual demand. This figure will only continue to increase as AI takes root across industries.
Right now, traditional renewable sources like solar and wind are struggling to provide the consistent baseload power that AI operations demand. As things stand, the only alternatives available are fossil fuels or nuclear energy.
With global net zero deadlines fast approaching, it seems inevitable that nuclear energy will become a far more prominent part of the conversation going forward.
"We’re kickstarting a golden age of nuclear in this country, joining forces with the US to turbocharge new nuclear developments and secure the technologies of the future," the UK's Energy Secretary, Ed Miliband, said this week.
Targeting the data centre market
One of the most significant developments for AI applications comes from companies Holtec, EDF Energy and property developer Tritax.
Their US$11bn project at the former Cottam coal-fired power station in Nottinghamshire will specifically look to power advanced data centres with small modular reactors.
This represents one of the first major projects explicitly designed to serve the AI sector's energy needs in the United Kingdom.
Meanwhile, Last Energy's partnership with DP World will focus on micro-modular nuclear plants for the London Gateway port and business park.
Streamlining regulations and facilitating trade
The UK-US Atlantic Partnership for Advanced Nuclear Energy promises to halve licensing times to approximately two years.
Both countries will accept each other's safety assessments, eliminating bureaucratic duplication that has historically slowed nuclear deployment.
This streamlined approach could prove crucial for AI companies seeking rapid expansion of their computational capacity.
Starmer described the agreement as a "landmark nuclear partnership" that would power economic growth.
The PM says that the commitments would set Britain "well on course to a golden age of nuclear that will drive down household bills in the long run, while delivering thousands of good jobs in the short term".
What impacts might this have on the UK's economy?
The broader industrial strategy extends beyond immediate power generation, too.
Centrica's partnership with X-energy for up to 12 advanced modular reactors in Hartlepool could create 2,500 jobs in England's North East.
The Nuclear Industry Association reports that the sector has already added 11,000 jobs this year, making good on the time-old promise that sustainability will lead to more employment.
Tom Greatrex, CEO of the Nuclear Industry Association, says that these transatlantic deals promise to contribute to the sector's "industrial revival, creating thousands of high-value jobs, and strengthening the UK's energy security".
Taking up a strategic position
By expanding its nuclear portfolio, the British government is looking to address two key challenges that it must overcome if it is to achieve its AI ambitions: energy security and industrial capacity.
By 2028, the new reactors could provide up to 6GW of power across the country, which would match the UK's current total nuclear output.
The Hartlepool facility alone is expected to generate enough electricity to power 1.5 million homes.
This baseload capacity could prove decisive in attracting major technology companies requiring reliable power for AI operations.
The deals also aim to eliminate dependency on Russian nuclear material by 2028, reducing geopolitical risks in critical infrastructure.
Britain's success in the global AI race may ultimately depend on whether these nuclear projects deliver the promised power capacity on schedule.
