The global electricity system is entering a period of extraordinary stress. The International Energy Agency projects electricity demand to rise 4% annually through 2027 – the fastest pace in recent times. Much of this growth is driven by two powerful, intertwined forces: the exponential electrification of industries and the expansion of digital infrastructure, particularly data centres built to serve artificial intelligence (AI).

At Equinix, we sit at the nexus of these forces. Our facilities provide the physical backbone for everything from cloud-based video streaming to AI-driven drug discovery. But that digital foundation is meaningless without round-the-clock electricity. Power is now a first-order business challenge for every data centre operator. And the blunt truth is this: without innovation in energy supply, the world will struggle to meet the demand.

That is why Equinix is taking a diversified portfolio approach to the energy challenge. We continue to work with utilities to strengthen the grid and bring more capacity online, but we are also leaning into advanced technologies that can complement and extend the traditional grid. Among these, none are more important – or more misunderstood – than next-generation nuclear power.

A new nuclear moment
For decades, nuclear has been framed in binary terms: either a necessary baseload source or a technology too slow and too expensive to matter. That debate is quickly becoming outdated. The rise of next generation nuclear technologies such as fourth generation small modular reactors (SMRs) and advanced microreactors is rewriting the nuclear playbook.

These new designs offer simplified construction, faster deployment timelines and safety features that are orders of magnitude more robust than the reactors of the past. Equally important, they are being developed with the realities of today’s energy system in mind: modularity, scalability and the ability to complement intermittent renewables.

At Equinix, we have chosen to partner directly with the innovators leading this renaissance. In 2024, we became the first data centre operator to sign a procurement agreement with Oklo, whose fast reactors can be fuelled by nuclear waste. In August, we expanded our nuclear partnerships significantly:

• With Radiant, we preordered Kaleidos microreactors – portable, long-lasting energy sources that can be installed in days.
• With ULC-Energy and Rolls-Royce SMR we signed a letter of intent for up to 250 MWe in the Netherlands.
• With Stellaria, we agreed to procure 500 MWe in Europe from the world’s first molten salt breed and burn reactor, capable of recycling spent fuels.

Together, these partnerships represent more than a bet on nuclear. They are an acknowledgement that digital infrastructure demands energy sources that are reliable, clean and – critically – deployable at scale.

The AI era has magnified both the promise and the pressure of energy. Training a single large AI model can consume more electricity than hundreds of US homes use in a year. Multiply that across thousands of models and it is easy to see why utilities are warning of grid stress.

Data centre operators cannot simply ‘buy more power’ from overstretched grids. We need to help build the future grid itself. Nuclear, with its ability to provide 24/7 carbon-free power, is a natural candidate. Unlike wind and solar, it does not depend on weather conditions. Unlike fossil fuels, it does not emit carbon at scale. And unlike yesterday’s nuclear projects, next-generation designs are engineered for modular deployment that matches the pace of digital growth.

Bridging the gap
That is not to say nuclear is a silver bullet. These new solutions will take years to come online and start generating power. Even the most optimistic industry watchers believe it will be the 2030s before we see power generation from next generation nuclear.

That’s why we are also investing in bridging technologies. Equinix has long been a pioneer in deploying fuel cells – our collaboration with Bloom Energy goes back 10 years and will soon surpass 100 MW across 19 sites in the US. We are also investing in substation upgrades and emergency backup systems that benefit not only our customers but entire local grids.

Data centre operators cannot simply ‘buy more power’ from overstretched grids – we need to help build the future grid itself.

A call for partnership
What makes this moment unique is that large power consumers – like Equinix – are no longer passive buyers of electricity. We are active participants in shaping the energy landscape. Our agreements with Oklo, Radiant, Stellaria and others are not just procurement contracts; they are votes of confidence in technologies that the world urgently needs.

To accelerate deployment, the private sector must continue to step forward. Governments and regulators also have a crucial role: streamlining licensing processes for advanced reactors, modernising grid infrastructure, streamlining the complex and laborious permitting process, and ensuring that innovation is rewarded rather than delayed.

The AI revolution will not wait for the energy sector to catch up. It is incumbent upon all of us – operators, utilities, innovators and policymakers – to ensure that digital progress does not outpace the electricity system that enables it.

Equinix has committed to sourcing 100% clean and renewable energy by 2030. We are already at 96% globally, with 250 sites running on 100% renewables in 2024. But the clean energy transition cannot succeed through renewables alone. It requires a portfolio approach that integrates nuclear, fuel cells, efficiency improvements and grid upgrades.

The views and opinions expressed in this article are strictly those of the author only and are not necessarily given or endorsed by or on behalf of the Energy Institute.

• Further reading: ‘Czech development just the latest news in a booming small modular (nuclear) reactor market’. Read more about Rolls-Royce SMR and ČEZ signing an agreement to progress the Czech Republic’s first small modular reactor (SMR) at Temelín; ARC Clean Technology clearing the latest regulatory review in Canada for its ARC-100 SMR, bringing it one step closer to commercial deployment; and the latest findings in the OECD Nuclear Energy Agency’s SMR report, which reveals a sharp global uptick in SMR deployment.
• A nuclear energy production system based on thorium could be a transformative approach to meeting the world’s growing energy demands sustainably. Safety, proliferation resistance and climate change mitigation often dominate discussions, but in addition thorium’s advantages also touch on efficiency, abundance, waste management and economic potential, writes Thomas Jam Pedersen, founder and CEO of developer Copenhagen Atomics.