As global demand for cleaner and more reliable energy grows, nuclear power is poised for a revival that could attract $1.5 trillion in capital investments by 2050. This resurgence is driven by the rise of energy-intensive technologies like generative artificial intelligence, along with a global commitment to triple nuclear capacity by mid-century. With a high capacity factor, nuclear energy provides consistent, low-carbon baseload power, making it attractive not only to hyperscalers but also to Bitcoin miners. Companies like TeraWulf operate nuclear-powered Bitcoin mining facilities. But is this a dying breed as hyperscalers such as Amazon and Microsoft are doubling down on nuclear deals to fuel their data centers? Lets find out.
The Revival of Nuclear Power
How Nuclear Energy Works
Nuclear Energy’s High Capacity Factor
Why Bitcoin Miners Consider Nuclear Power
Nuclear Mining Collaboration between TeraWulf and Talen Energy
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Hyperscalers Doubling Down on Nuclear Power
3 Reasons Hyperscalers Outpace Bitcoin Miners for Nuclear Power
The Revival of Nuclear Power
For years, the nuclear power industry has faced challenges related to high costs, construction delays, and concerns over safety and waste management. These issues intensified after the 2010 Fukushima disaster in Japan, which reignited public fears about nuclear safety. However, in 2023, over 20 countries at the UN’s COP28 climate conference committed to adding 740 gigawatts of nuclear capacity by 2050. The goal of adding 740 gigawatts of nuclear capacity is ambitious. For perspective, it took the world 70 years to reach 390 gigawatts of nuclear power capacity since the first nuclear power station was connected to the grid in 1954.
As the global demand for cleaner and more reliable energy intensifies, nuclear power is on the verge of a revival that could attract $1.5 trillion in capital investments by 2050, according to Morgan Stanley Research. Key factors driving the growing demand for nuclear energy include the rise of energy-intensive generative artificial intelligence and a global commitment by multiple countries to triple nuclear capacity by 2050. Nuclear energy can be a crucial contributor to achieving decarbonization targets by delivering stable, low-carbon baseload power generation. Nuclear power is expected to represent 17% of electricity generation by 2050, up from about 10% currently.
How Nuclear Energy Works
Nuclear energy is generated through nuclear fission, where atoms of uranium or other heavy elements are split to release a significant amount of heat. This heat is then used to produce steam, which drives turbines connected to generators that produce electricity. The key benefits of nuclear power are its ability to provide continuous (baseload) energy and produce minimal carbon emissions compared to fossil fuels.
Nuclear energy has been gaining attention as a potential power source for Bitcoin mining due to its ability to provide a reliable, large-scale, and low-carbon energy supply.
Nuclear Energy’s High Capacity Factor
Capacity factor measures the actual output of a power plant compared to its maximum possible output over a given period. It reflects how often a plant operates at full capacity. Nuclear power has a high capacity factor because nuclear plants run continuously, often for long stretches, with minimal downtime for refueling or maintenance. Unlike intermittent renewable sources like solar or wind, nuclear plants aren’t affected by weather or daylight, allowing them to generate power consistently. This reliability makes nuclear an excellent source for baseload power. As a result, nuclear plants can provide steady, round-the-clock electricity with few disruptions.
Why Bitcoin Miners Consider Nuclear Power
Mining companies consider nuclear power as a viable energy source for several reasons. First, nuclear energy provides a stable and reliable supply of electricity, which is essential for the continuous operation of mining activities. Second, with its high capacity factor, nuclear power can help reduce operational costs by minimizing disruptions caused by power outages or fluctuations in energy prices. Third, as the industry faces increasing pressure to reduce carbon emissions, nuclear power offers a low-carbon alternative that can contribute to sustainability goals.
While mining with 100% nuclear power can be challenging, there are many grids that have nuclear power as part of their energy mix. An example is the Texas grid. Texas has two operating nuclear power plants: the South Texas Project and Comanche Peak, which together provide about 10% of the state’s electricity generation. While Texas is primarily known for its significant contributions from natural gas and renewables, particularly wind power, nuclear energy plays a role in ensuring grid stability and reliability, especially during periods of high demand.
Nuclear Mining Collaboration between TeraWulf and Talen Energy
Although they are rare, there are miners who use 100% nuclear power. In 2021 Talen Energy Corporation announced that, as part of its strategic transformation to a renewable energy and digital infrastructure growth platform, it entered into a Joint Venture with TeraWulf, a U.S.-based bitcoin mining company, to develop up to 300 Megawatts of zero-carbon bitcoin mining capacity. The Joint Venture, named Nautilus Cryptomine leveraged the strengths of both Talen and TeraWulf as they collectively worked to advance the convergence of clean energy sources and digital infrastructure assets.
In April 2023 TeraWulf announced that the company fully energized its 50-MW stake in the Nautilus facility. It represented the first behind-the-meter Bitcoin mining facility directly sourcing power from the 2.5 GW Susquehanna nuclear generation station in Pennsylvania. TeraWulf contracted one of the lowest power cost in the sector, just $0.02/kWh. However, after the PPA expires in 2027, power prices at Nautilus are anticipated to exceed those at TeraWulf other location, Lake Mariner. This lead WULF to sell 25% equity interest in Nautilus to Talen Energy.
Under the transaction terms, Talen acquired TeraWulf’s 25 % and obtained full control of the legacy Power Purchase Agreement (PPA) for $85 million cash, along with select physical assets used in the Bitcoin mining operation. The total transaction value was valued at $92 million.
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Hyperscalers Doubling Down on Nuclear Power
3 Reasons Hyperscalers Outpace Bitcoin Miners for Nuclear Power
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