Jensen Huang, CEO of Nvidia, has stated that artificial intelligence requires 1,000 times more power than current capabilities can provide. Despite this, the growth in data centers, which would typically drive demand for nuclear reactor developers like Oklo and NuScale Power, appears to be facing delays. Oklo, still in pre-application stages with the Nuclear Regulatory Commission (NRC), and NuScale Power, which holds NRC approval but awaits customer procurement, may not see immediate benefits from AI’s power demand. The situation suggests that reactor demand is contingent on actual data center expansion rather than just AI power forecasts.
Key Takeaways
- The statement by Jensen Huang appears to highlight a potential mismatch between AI’s power needs and current data center growth, which could affect reactor developers.
- Pricing suggests a decreased likelihood of data center moratoriums in Texas and Missouri, aligned with a reduced urgency for new power infrastructure.
- The delay in data center expansion could indicate that the anticipated demand for nuclear reactors from Oklo and NuScale Power may not materialize as quickly as expected.
What to Watch
The trajectory of data center construction in Texas and Missouri will be key indicators to watch. Any legislative or executive actions by state leaders, such as Governor Greg Abbott in Texas or Governor Mike Kehoe in Missouri, could influence market odds. Additionally, developments in the NRC’s processing of Oklo’s applications or NuScale’s customer procurements might further impact market sentiment regarding the energy infrastructure needed to support AI’s growing power demands.
