The demand for electric energy in the U.S. has been largely flat since the 1980s but as we now grapple with skyrocketing electricity needs driven by artificial intelligence (AI), data storage, and renewable energy integration, the nation’s energy landscape is undergoing a seismic shift. This transformation is not merely a response to increasing demand but also a concerted effort to reduce carbon emissions, ensure energy reliability, and stabilize costs in a rapidly evolving market. Utilities and tech companies alike are turning to cleaner and more sustainable energy sources, and hydrogen and nuclear power are emerging as pivotal players in this transition, answering the pressing question: “Where will the power come from?”

The convergence of several trends is pushing electricity consumption to unprecedented levels. AI applications and machine learning models demand massive computing power, resulting in energy-intensive data centers. These centers, the backbone of a digitized economy, already account for significant global electricity usage and are poised to consume even more as AI adoption accelerates.

Simultaneously, the widespread adoption of renewable energy, such as wind and solar, introduces variability into the grid, requiring reliable, on-demand power to balance supply. Moreover, the electrification of transportation and the increasing integration of battery storage solutions further stress existing grid systems.

Hydrogen: A Non-Grid Energy Solution

Hydrogen is quickly becoming a key player in the clean energy transition due to its versatility and scalability. It can serve as a fuel for transportation, a storage medium for excess renewable energy, and a direct source of electricity through fuel cells. With the introduction of the Section 45V Clean Hydrogen Production Tax Credit under the Inflation Reduction Act, the U.S. government has set clear incentives for hydrogen producers to meet stringent greenhouse gas (GHG) emission standards, encouraging investment in low-carbon hydrogen production.

Tech giants like Amazon Web Services (AWS) and Microsoft have already recognized hydrogen’s potential, exploring its use in data centers and as a clean backup power source. Hydrogen’s ability to integrate with existing infrastructure and complement renewable energy systems makes it an attractive option for decarbonizing industries beyond electricity generation.

Nuclear Power: A Reliable, Scalable, and Clean Grid Solution

Nuclear power, which currently provides nearly 20% of the U.S. electricity supply and more than half of its carbon-free electricity, is experiencing a renaissance. Advanced nuclear reactors, such as the Natrium reactor and small modular reactors (SMRs), offer significant advantages over traditional designs, including greater safety, lower costs, and increased flexibility. These reactors can operate continuously, providing a steady base load of power, or scale output to match demand, making them ideal for grid stabilization alongside renewables.

Moreover, the newly operational Vogtle Units 3 and 4 in Georgia symbolize a renewed commitment to nuclear energy, despite decades of stalled development. The Inflation Reduction Act and state-level initiatives like zero-emission credits (ZECs) are further ensuring that existing plants remain viable and that new projects attract investment.

The Intersection of Technology and Energy

Tech companies, driven by sustainability goals and the operational demands of AI and cloud computing, are becoming significant players in energy strategy. Companies like Microsoft and AWS are partnering with energy providers to secure long-term power purchase agreements (PPAs) for nuclear and hydrogen-based energy, showcasing how private sector innovation can accelerate the clean energy transition.

The intersection of technology and energy is also reshaping public perception. Nuclear power, once seen as controversial, is gaining renewed acceptance as concerns about climate change grow. Similarly, the clean hydrogen economy is being heralded as a pathway to decarbonizing hard-to-abate sectors, including aviation, shipping, and heavy industry.

Hydrogen and Nuclear rise to meet the Challenge

While hydrogen and nuclear power are not without challenges—such as the need for investment in infrastructure, public acceptance, and regulatory hurdles—both are positioned to play central roles in the future energy mix. Hydrogen offers flexibility and storage solutions, while nuclear ensures reliability and base-load power, creating a complementary relationship that addresses the weaknesses of renewables.

In the decade to come, these energy sources are not only answers to the question of “where will the power come from?” but also key drivers of a cleaner, more resilient energy system. Together, they represent the bridge between the energy demands of the present and the sustainable future we are striving for.

The Role of Nuclear Power in U.S. Energy

Nuclear power has been a cornerstone of U.S. energy generation for decades, accounting for 18% of total electricity output and over 55% of carbon-free energy in 2022. With the Inflation Reduction Act of 2022 offering incentives for advanced reactors and hydrogen production, the stage is set for a nuclear resurgence.

Recent Developments

• Vogtle Units 3 and 4: These reactors came online in 2023 and 2024, marking the first new nuclear reactors in the U.S. in decades.
• Economic Viability: Nuclear generation costs have plummeted by 40% since 2012 due to advancements in fuel efficiency and operational costs.
• Advanced Reactors: Technologies like the Natrium reactor, combining liquid sodium cooling and molten salt storage, promise enhanced safety, flexibility, and cost efficiency.

Addressing Challenges

Despite these advancements, nuclear energy faces hurdles, including competition from natural gas and subsidized renewables. However, the stability and reliability of nuclear power make it indispensable for achieving a low-carbon future.

Hydrogen: The Clean Fuel Revolution

Hydrogen is rapidly gaining traction as a clean energy alternative, capable of decarbonizing sectors that are difficult to electrify, such as heavy industry and transportation. The U.S. Department of Energy’s Regional Clean Hydrogen Hubs program and the Section 45V tax credit are pivotal in accelerating hydrogen adoption.

Key Drivers

• Green Hydrogen: Produced through electrolysis using renewable or nuclear energy, green hydrogen represents a zero-emission solution.
• Infrastructure Growth: Investment in hydrogen production, storage, and distribution is scaling rapidly, bolstered by federal support and private partnerships.
• Synergies with Nuclear: Nuclear power plants are uniquely positioned to produce hydrogen through high-temperature electrolysis, enhancing their economic viability.

Why Tech Companies are Joining the Transition

Tech giants like Microsoft and AWS are committing to nuclear power to meet their data centers’ growing energy demands. For instance:

• Microsoft and Constellation Energy: A 20-year agreement to use electricity from Three Mile Island’s Unit 1 demonstrates the potential of nuclear for steady, low-emission energy.
• AWS and Talen Energy: A partnership to leverage 960 MW from Susquehanna nuclear plant showcases the scalability of nuclear power.

Regulatory and Public Perception Shifts

Public sentiment and regulatory landscapes are evolving, paving the way for broader acceptance of nuclear energy:

• Extended Reactor Lifespans: The Nuclear Regulatory Commission is licensing reactors for up to 80 years, enabling long-term energy production.
• Enhanced Safety Measures: Innovations such as FLEX accident response strategies and passive safety designs bolster public confidence.
• Economic and Environmental Benefits: States like Illinois and New York have implemented Zero Emission Credits (ZECs) to support nuclear plants, recognizing their critical role in reducing emissions.

The Path Forward

The integration of hydrogen and nuclear power into the U.S. energy mix is not merely a technological evolution but a strategic imperative. As renewables like wind and solar reach their limitations in reliability and scalability, hydrogen and nuclear stand ready to fill the gap. This dual approach ensures a resilient, low-carbon energy future capable of supporting the nation’s ambitious climate goals and burgeoning electricity demands.

Call to Action

The time to act is now. Policymakers, industry leaders, and consumers must collaborate to:

1. Expand Investments: Accelerate funding for advanced nuclear and hydrogen projects.
2. Modernize Grids: Build resilient infrastructure to support distributed energy resources.
3. Educate the Public: Promote awareness of the safety, reliability, and environmental benefits of these technologies.

By embracing this transformative energy transition, the U.S. can lead the world in innovation, sustainability, and economic growth.