Nvidia CEO Jensen Huang has voiced strong support for nuclear energy as a critical solution for powering AI data centers, which are projected to consume as much electricity as a small country within the next three years. By 2027, the energy requirements for AI could rival the total electricity consumption of Sweden or the Netherlands.

In an interview with Bloomberg, Huang emphasized the need for a diverse energy portfolio, stating, “Nuclear is a wonderful way forward as one of the sources of sustainable energy.” He acknowledged that while nuclear energy won’t be the sole solution, it is essential to balance energy availability, cost, and sustainability as the demand for electricity rises due to AI advancements. Huang also noted that despite increased energy consumption, AI’s potential for “incredible productivity” will offset these demands.

His comments come amid Microsoft’s decision to reopen the Three Mile Island nuclear power plant, which had been closed for five years. Other tech leaders, such as OpenAI’s Sam Altman, have similarly highlighted nuclear power’s role in meeting AI’s energy needs. Altman has invested $375 million in Helion Energy, a startup aiming to develop the world’s first nuclear fusion power plant.

AI’s energy consumption is becoming increasingly significant. Google’s 2024 environmental report revealed a nearly 50% rise in emissions, primarily attributed to energy demands from data centers and its supply chain. The report indicated that as AI integration deepens, reducing emissions will become more challenging due to heightened energy needs.

Nvidia currently dominates the AI chip market, holding between 70% and 95% share. Its top clients—Meta, Amazon, Google, and Microsoft—contribute over 40% of its revenue. At the time of this report, Nvidia’s market capitalization stood at an impressive $2.953 trillion.