The growing energy demand caused by Artificial Intelligence has led large technology companies such as Microsoft to reopen the Three Mile Island plant. This movement joins the debates in Europe and Japan, where there are once again voices arguing about reactivating nuclear power plants 13 years after the Fukushima accident. However, nuclear energy is in the global spotlight and has found a foothold in the banks to take off.
Banks promise support for nuclear energy. According to The Financial Times, An event was held in New York City, where representatives of large banking institutions such as Bank of America, Barclays, BNP Paribas, Citi, Morgan Stanley and Goldman Sachs met. At this meeting, fourteen banks and financial entities committed to increasing support for nuclear energy. The goal emerged from the first climate negotiations at COP28 last year, which declared the need to triple global nuclear energy capacity by 2050.
But why nuclear energy? Nuclear energy has been a source of controversy between governments and citizens for years, but now it is presented as a quick option to reduce emissions while generating large amounts of energy. The two large corporations, BNP Paribas and Barclays, have pointed out to the Financial Times that nuclear energy is essential for carbon neutrality.
However, it is important to highlight that many environmental movements and organizations continue to reject it due to the risks associated with nuclear waste, which represents a dangerous environmental footprint. For their part, the interest of technology companies, such as Microsoft, have shown an interest in reactivating and financing nuclear projects to satisfy their energy needs, especially given the rise of Artificial Intelligence.
Although historically the high costs of nuclear energy have been a barrier, the financial support of banking institutions is becoming increasingly important in its development.
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Limitations on financing The high initial cost of building nuclear plants made them financially risky projects. Furthermore, the times to decide and launch a nuclear power plant represented another obstacle in a context of acceleration in the face of climate urgency.
Another challenge that arises is the management of radioactive waste, which requires safe long-term storage. In this context, there are concerns about nuclear accidents such as Chernobyl or Fukushima, which have left a permanent mark on public opinion. The dependence on more advanced technologies and the control of nuclear material are part of the debate on the risks posed by this energy.
Nuclear expansion. Other regions of the globe such as Asia and the Middle East have taken the initiative to continue building new plants. China has seen this source of energy as an engine to continue stimulating its economy.
However, in recent years, several countries have seen nuclear as a viable solution to fulfill their promises of net zero emissions and higher economic performance. The COP 28 commitment to triple nuclear capacity by 2050 was signed by 25 countries, including the United States, France, Japan, Poland and the United Arab Emirates, while Spain does not appear in the agreement.
Support from the technology sector. The technology sector has begun to develop a growing interest in nuclear energy, as a potential way to generate energy constantly. Large companies such as Microsoft and Oracle have reactivated and planned for their data centers to be powered by nuclear reactors due to the demand for Artificial Intelligence.
The commitments of large companies and financial entities towards nuclear energy reflect a significant change in direction, positioning themselves in favor of this source to satisfy growing energy demands.
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