The relationship between nuclear power and artificial intelligence has moved from a niche conversation to a central pillar of global energy strategy. At this week's International Atomic Energy Agency (IAEA) General Conference in Vienna, Director General Rafael Mariano Grossi emphasized that the connection between AI and nuclear energy is "no longer incidental or optional," signaling a fundamental shift in how the world thinks about powering the next generation of computing infrastructure.

With nearly 4,000 attendees gathered for the IAEA's 70th General Conference, Grossi outlined an ambitious vision for nuclear expansion. The organization now projects that global nuclear power capacity will grow threefold by 2060, driven by countries both experienced with nuclear technology and newcomers entering the field for the first time. This growth is being fueled by unexpected demand drivers, including shipping applications and the explosive energy requirements of artificial intelligence systems.

Why Is AI Suddenly Demanding So Much Nuclear Power?

The surge in AI adoption has created an energy crisis that traditional renewable sources alone cannot solve. Data centers powering large language models (LLMs), which are AI systems trained on vast amounts of text to generate human-like responses, consume enormous amounts of electricity continuously. Unlike solar and wind farms that generate power intermittently, nuclear plants provide constant, carbon-free baseload power that AI companies need to keep their systems running 24/7. This reliability factor has made nuclear energy attractive to tech giants and utilities planning for the next decade of AI expansion.

The IAEA's recognition of this trend reflects a broader global awakening. Italy, which abandoned nuclear power after the 1987 Chernobyl disaster, is now planning a nuclear comeback specifically to meet rising electricity demand from data centers supporting artificial intelligence. Energy Minister Gilberto Pichetto Fratin cited forecasts of sharply rising electricity demand over the next 10 to 15 years as transport and industry electrify and data centers expand to support AI.

"Fusion has the potential to provide virtually limitless clean energy while supporting more than 10,000 jobs across the UK by 2030, attracting investment and creating major opportunities for British businesses," said Energy Minister Michael Shanks.

Michael Shanks, Energy Minister, UK Government

How Are Countries Responding to This Energy Challenge?

Governments and private companies are moving rapidly to expand nuclear capacity through several complementary approaches:

• Small Modular Reactors (SMRs): Italy's strategy focuses on small modular reactors that could be serially produced by the end of this decade, cutting construction time to three or four years and enabling electricity generation by 2034 or 2035.
• International Partnerships: The UK and US deepened their nuclear collaboration this week, with new agreements between the UK Atomic Energy Authority and Princeton Plasma Physics Laboratory to share expertise in artificial intelligence, computing, and nuclear fusion to accelerate commercialization.
• Commercial Fusion Development: The UK and US also committed to closer collaboration on fusion regulation, which should help support the sector and attract critical investment in this emerging technology.
• Advanced Reactor Deployment: Under the Atlantic Partnership for Advanced Nuclear Energy, major commercial deals are already being finalized, including a project between X-Energy and Centrica to build up to 12 advanced modular reactors in Hartlepool that would generate enough power for 1.5 million homes.

The UK-US partnership announcements follow publication of the Government's UK Fusion Investment Prospectus, which breaks down potential investment and commercial opportunities for fusion, a market estimated to be worth between 3 trillion and 12 trillion pounds globally.

What Does This Mean for the Future of Energy Policy?

The IAEA now supports 43 countries embarking on nuclear power programs that follow the organization's long-term Milestones Approach, with another 20 countries considering it. This represents a dramatic expansion of nuclear adoption beyond traditional nuclear powers. Further expansion will depend on factors like financing and reactor technology, but progress is being made on both fronts. The World Bank Group has lifted its block on financing nuclear energy and is now partnering with the IAEA, removing a major barrier to investment.

Italy's push reflects broader geopolitical concerns about energy independence. Pichetto Fratin described nuclear power as a matter of "national security," citing Italy's "excessive dependence" on foreign energy supplies exposed by energy shocks linked to Ukraine and the Persian Gulf. This framing suggests that AI-driven energy demand is not just a technical problem to solve, but a strategic imperative that governments view as central to economic competitiveness and national resilience.

"We are a democracy. If the Italian people choose backwardness over the modernization of the future, that would be a democratic choice, unfortunately, in my view," stated Gilberto Pichetto Fratin.

Gilberto Pichetto Fratin, Energy Minister, Italy

The generational shift in public perception is also playing a role. Pichetto Fratin noted that young people today are "much less ideologically driven and much more pragmatic" about nuclear power, recognizing it as a safe source of energy that can help achieve decarbonization goals. This changing attitude could prove crucial for securing public support for new reactor construction in countries where nuclear energy remains politically contentious.

Pichetto Fratin

The convergence of AI energy demands, climate goals, and geopolitical pressures is reshaping the global energy landscape faster than many anticipated. What was once a niche discussion about powering data centers has become a central concern for international energy agencies, governments, and private companies. The IAEA's statement that the AI-nuclear relationship is "no longer incidental or optional" captures this transformation perfectly. As artificial intelligence continues to advance and consume more electricity, nuclear power is no longer a supplementary option but an essential component of any realistic energy strategy for the 21st century.