The UK-US Nuclear Deal Targeting AI Power Demand: Explained
Following US President Donald Trump’s visit to the UK, the two nations have struck a deal.
After talks with UK Prime Minister Keir Starmer, the two leaders have made a bilateral trade agreement targeting nuclear power development to meet the energy demands of AI infrastructure.
The Tech Prosperity Deal, unveiled by President Trump and Prime Minister Keir Starmer, positions nuclear energy as the backbone for powering AI data centres.
Keir Starmer describes the agreement as a “landmark nuclear partnership” that would power economic growth, saying the commitments would set Britain “well on course to a golden age of nuclear that will drive down household bills in the long run, while delivering thousands of good jobs in the short term.”
Google, Nvidia and Microsoft have also committed to expanding UK operations as part of the broader agreement.
Why nuclear power?
AI data centres consume hundreds of megawatts of power continuously to run the parallel processing systems that enable machine learning (ML) applications.
The International Energy Agency (IEA) projects that data centres will devour 945 terawatt-hours annually – equivalent to Japan’s entire energy consumption – as AI adoption accelerates across industries.
Traditional renewable sources like solar and wind struggle to provide the consistent baseload power that AI operations demand around the clock.
Nuclear reactors, by contrast, can operate continuously regardless of weather conditions, making them ideal for data centres that cannot tolerate power interruptions.
Chris Wright, the US Energy Secretary, frames nuclear power as essential for supporting America’s AI ambitions.
He says that America has been looking to commercial nuclear power to “fuel the AI revolution.
“Meeting this demand will require strong partnerships with our allies around the world and robust collaboration with private sector innovators.”
The partnership promises to slash regulatory red tape through the UK-US Atlantic Partnership for Advanced Nuclear Energy, which aims to halve licensing times to approximately two years.
Both countries will accept each other’s safety assessments, eliminating duplicative approval processes that have historically slowed nuclear deployment.
Why the nuclear push will be at a former coal plant
The centrepiece of the nuclear push is an ambitious US$11bn project at the former Cottam coal-fired power station in Nottinghamshire.
Nuclear technology company Holtec International will partner with EDF Energy and property developer Tritax to build small modular reactors specifically designed for AI data centres.
These smaller nuclear units produce between 50 and 300 megawatts of power, compared with traditional plants that generate over 1,000 megawatts.
The modular approach allows components to be manufactured in factories and transported to sites, potentially reducing both construction times and costs.
EDF Energy, which operates Britain’s existing nuclear fleet and supplies electricity to 5.8 million customers, sees the partnership as its entry into next-generation nuclear technologies targeting AI infrastructure.
Meanwhile, nuclear startup Last Energy will team up with ports operator DP World to develop micro-modular plants at the London Gateway port and business park, where automated cargo systems require reliable power.
Ed Miliband, the UK’s Energy Secretary, says: “We’re kickstarting a golden age of nuclear in this country, joining forces with the US to turbocharge new nuclear developments and secure the technologies of the future.”
The promise of thousands of new jobs
Beyond the headline projects, energy supplier Centrica will partner with reactor developer X-energy to build up to 12 advanced modular reactors in Hartlepool.
The project could create 2,500 jobs in England’s North East, where traditional heavy industries have declined.
The Hartlepool facility alone is expected to generate enough electricity to power 1.5 million homes.
By 2028, the new reactors could collectively provide up to 6 gigawatts of power across the UK – matching the country’s current nuclear output.
Tom Greatrex, CEO of the Nuclear Industry Association, emphasises the broader economic impact.
The sector has already added 11,000 jobs this year, with Greatrex saying these transatlantic deals promise to contribute to the sector’s “industrial revival, creating thousands of high-value jobs and strengthening the UK’s energy security.”
