On November 10, 2024, major technology companies Amazon, Microsoft, and Google announced their commitment to nuclear energy to power data centers and address the rising energy demands of artificial intelligence (AI).
This strategic pivot towards nuclear power reflects an intention to utilize clean and reliable energy sources, potentially transforming the energy landscape.
In India, where energy consumption is surging due to an expanding tech sector, there is a renewed focus on nuclear energy. The country is considering its approach to this energy source, particularly with the growing interest in Small Modular Reactors (SMRs). These reactors are noted for their compact size and cost-effectiveness, offering quicker assembly than traditional reactors.
SMRs utilize high-assay low-enriched uranium (HALEU), which features a higher concentration of uranium-235, promising faster deployment and reduced costs. However, experts caution about the challenges associated with managing SMR waste.
Currently, nuclear energy contributes less than 2% to India's electricity grid, which heavily relies on coal. The Indian government operates 22 nuclear reactors generating a total of 6,780 MW and aims to triple its nuclear capacity by 2032.
Regulatory frameworks, such as the Atomic Energy Act and the Civil Liability for Nuclear Damage Act, currently restrict reactor ownership to state entities, posing barriers for private sector involvement.
However, discussions are underway with major companies like Reliance Industries, Tata Power, Adani Power, and Vedanta to explore private participation in a hybrid public-private model. This approach could introduce technological advancements and financial resources to the nuclear sector.
India's future nuclear policy will need to balance innovation with safety, ensuring a regulatory environment that attracts investment without compromising accountability.