Why are Google and Microsoft investing in nuclear power?

AI's electricity demand is real and growing fast, but most of the nuclear "solutions" being announced won't deliver power for years.
According to the IEA's April 2026 report, AI-focused data center electricity consumption surged 50% in 2025 alone, roughly three times faster than the growth of the broader data center industry. Total data center electricity demand is projected to nearly double, from about 485 TWh in 2025 to roughly 950 TWh by 2030. Renewable sources like solar and wind are cheaper and faster to deploy but are intermittent, while data centers need 24/7 baseload power, which is exactly what nuclear provides.
That's the real problem. But look closely at the timelines in these deals: Microsoft's restart of the Three Mile Island reactor isn't expected to be online until 2027. Google's small modular reactor (SMR) partnership with Kairos Power relies on technology that hasn't been proven at commercial scale anywhere in the US yet, with full deployment not expected until later this decade.
So the honest framing is: the problem (AI needs continuous power now) is completely real, but the announced solution (new or restarted nuclear plants) is mostly a promise for the late 2020s, not something operating today.
Longer breakdown here: [Full Article]