International Energy Agency (IEA) recently published a report, Energy and AI, which dug into a data-driven global analysis on the growing connections between energy and artificial intelligence (AI). That included tapping into experts in the tech sector, energy industry, and international alliances. The study projects that electricity demand from data centers worldwide is set to more than double by 2030 to around 945 terawatt-hours (TWh). AI will be the most significant driver of this increase, with electricity demand from AI-optimized data centers projected to more than quadruple by 2030.
Companies like Amazon, Microsoft, and Alphabet have developed strategies about the fast-growing demand for the cloud infrastructure. These and other companies are also taking nuclear power very seriously as a source to produce enough electricity to meet this demand. Some of these major corporations are also investing in nuclear power plants — restoring mainly existing facilities in the U.S. to meet safety and environmental demands; and to realistically plan for what do with nuclear waste.
Nuclear energy now provides about 9% of the world’s electricity from about 440 power reactors, according to World Nuclear Association. It makes up about a quarter of the world’s low-carbon electricity, and it’s the second largest source for low-carbon power. Nuclear provides nearly 20% of the U.S.’s electricity, according to the Dept. of Energy. It’s also the nation’s largest source of clean energy, making up about half the renewable energy used to run electricity power plants.
When millions of people across the Iberian peninsula were left without power last month, it fueled debate over the need to bring in more nuclear power to Europe as reported in The Guardian. That power outage, primarily in parts of Spain and Portugal within the peninsula, was the largest blackout in decades. The U.S. has seen its share of major blackouts and short-term power outages in the past few years, with most of it blamed on the demands made by climate change and chaotic weather fluctuations and extremes, and rising demand for power consumption from air conditioning units, electronic devices, and eventually around new demand from cloud, AI, and quantum computing projects taking off at large scale.
There could be 92 million electric vehicles on U.S. roads by 2040, based on a PwC analysis. That would be 20 times more than the estimated 4.5 million EVs in 2023. That will take a lot more charging power. Even with that increasing demand, it could be significant but manageable with the right planning and control measures, according to PwC. But that wouldn’t take into account the fast-growing data cloud storage demand in the U.S. and other countries.
Clean Air Task Force says that the U.S. federal government earns an “incomplete” rating on nuclear energy. President Trump recently issued four executive orders focused on unlocking advanced nuclear energy domestically and abroad. The U.S. will struggle to deploy and build new projects at the scale necessary to tackle energy security and leadership in nuclear technology, CATF says. That comes down to three main reasons: “Orderbook” reactor deployment may be necessary for future projects, but the financial risk and finding revenue certainty isn’t being addressed; the U.S. House recently voted to diminish crucial tax credits that reduce the costs of new plants by up to 40%; and the House recently voted to restrict the Department of Energy’s Loan Programs Office, which is essential to finance the first wave of new plants.
CATF agrees with the administration — and the previous Biden administration — that advanced nuclear energy should be supported. The organization will also continue to advocate for a bolder, more cohesive strategy to make sure government is delivers, safe, clean, and reliable nuclear energy at an affordable cost.
Nuclear power has a large segment of opponents in the U.S., who will cite debacles such as Three Mile Island, Chernobyl, and Fukushima; and several projects in the U.S. that have stalled out or run out of funding to go online. It will be part of getting these power plant projects approved and funded. Both the Biden and Trump administrations have supported nuclear energy with their own set of requirements, but it is likely to gain enough support to go forward.
Washington blocking CA rules: President Donald Trump is ready to sign an executive order that would roll back California’s clean clean car and truck rules and waivers. It signifies the Trump administration’s commitment to rolling back the state’s zero emission vehicle mandates. The Senate recently backed the House by rejecting three California regulations that had been supported by the Biden administration. Currently, 16 other states and the District of Columbia have adopted California’s Advanced Clean Cars II regulations, which include ZEV standards. A coalition of 11 states recently launched an Affordable Clean Cars Coalition to expand access to ZEVs — primarily electric vehicles — by protecting their state residents from they call attacks by the federal government and to continue supporting advancements in clean cars and trucks.
AVs in Washington: The U.S. Senate is looking into the question of whether federal safety standards can be established for autonomous vehicles. Senator Cynthia Lummis (R-WY) recently introduced the Autonomous Vehicle Acceleration Act of 2025, which is designed to expedite the integration of autonomous vehicles (AVs). Lummis’ goal is to set a national framework to support development and deployment of the technology. Separately, the Dept. of Transportation has unveiled a new Automated Vehicle Framework. Its objective is to harmonize state regulations and eliminate unnecessary barriers to innovation.
What’s Happening in Funding?
Cited above, you’ll see a reference to a Clean Air Task Force (CATF) analysis of Washington nuclear policies. CATF is a nonprofit organization working to safeguard against the worst impacts of climate change by catalyzing the rapid global development and deployment of low-carbon energy and other climate-protecting technologies. This is accomplished through research and analysis, public advocacy leadership, and partnership with the private sector. CATF has offices in Boston, Washington D.C., and Brussels, with staff working virtually around the world. Check out its Clean Transportation Funding Tracker that follows available incentives and other funding opportunities to decarbonize on-road, maritime, and aviation transportation sectors.
