Nuclear power is 'overblown' as an energy source for data centers, power company CEO says

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AES Corporation CEO Andrés Gluski said the 'euphoria' over nuclear power has been a 'little overblown.'

AES Corporation CEO Andrés Gluski said the "euphoria" over nuclear power has been a "little overblown."

Some Wall Street analysts have predicted a nuclear renaissance as power demand increases thanks to artificial intelligence, data centers, re-industrialization and the electrification of the vehicle fleet. Nuclear provides reliable, carbon-free energy, though new projects have long lead times and are expensive.

"The Street got ahead of it saying you're not going to build renewables, it's all going be nuclear," Gluski said. "It's going to be natural gas and renewables, but the bulk of it's going to be renewables," the CEO said.is 54% renewables, 27% natural gas, and 17% coal. Renewables represent 89% of the company's gross power generation under construction while gas makes up the remaining 11%.for 10.

Goldman Sachs estimates that power demand from data centers will more than double to 8% of total U.S. electricity consumption by 2030, according to an April report. The investment bank sees natural gas supplying 60% of the demand growth, and renewables 40%.

 

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