At the World Nuclear Symposium 2024, Microsoft’s Director of Nuclear and Energy Innovation, Todd Noe, emphasized the vital role of nuclear energy in achieving the company’s clean energy objectives. However, he clarified that Microsoft does not plan to invest directly in its own nuclear power plants.
During a panel titled “Power Partners – Connecting End Users with 24/7 Energy,” Noe outlined a strategic roadmap that aligns nuclear energy with Microsoft’s decarbonization commitments.
“Microsoft is already one of the largest consumers of renewable electricity,” he stated, asserting that the company views nuclear energy similarly to renewables in its policies. He expressed support for promoting policies that facilitate nuclear deployment and collaboration with manufacturers and utilities in regions where nuclear is accepted.
One key distinction Noe made between nuclear and renewable energy is that nuclear provides “firm power.” He explained, “At the end of the day, you have to have electrons coming into the data center. Renewables are fantastic, but we clearly see the need for additional sources of firm, clean power.”
Addressing the industry’s challenges, Noe emphasized the importance of accelerating nuclear deployment, particularly small modular reactors (SMRs). He mentioned that financial models to support these projects are in development, with potential backing from private equity due to lower construction costs—similar to those of large gas or oil projects.
Earlier this year, Microsoft partnered with North American steel manufacturer Nucor Corporation and tech giant Google to explore new business models and aggregate demand for advanced clean electricity technologies, including advanced nuclear. The company has also signed an energy matching agreement with Constellation Energy to leverage the environmental benefits of nuclear power in reducing its data center’s carbon footprint.
Responding to audience concerns about the pace of new nuclear deployment, Noe reassured attendees that the U.S. has not “missed the boat” but acknowledged challenges posed by existing transmission systems. He suggested that co-locating nuclear facilities with end-users might be a viable solution.
Despite not seeking equity stakes in nuclear plants, Noe pointed out that Microsoft’s substantial investments in data center infrastructure could help de-risk new nuclear projects by providing purchasing certainty. “We’re spending tremendous amounts of CapEx on data center build-out, and while there isn’t much appetite to divert CapEx from our core business to energy, we can enable certainty for purchasing,” he said.
