If you’re like me, you’ve probably asked Alexa to play your favorite song, bought something you didn't need, and lost 4 hours to a Real Life Crime binge—all in the same day. Amazon's everywhere. But there’s one area you might not expect Amazon to be involved in: nuclear power. 

Recently, Amazon Web Services (AWS) made headlines by shelling out $650 million to buy a nuclear-powered data center from Talen Energy in Pennsylvania. It’s a headline that raises eyebrows. Why would Amazon, the king of e-commerce, venture into nuclear energy? Is Jeff Bezos plotting to create his own off-grid utopia somewhere in the wilderness? Not quite.

The real story here is about the insane amount of energy that AI is starting to consume. Our traditional power grid just isn’t built to handle this kind of demand, and Amazon knows it. By investing in nuclear power, Amazon is making sure it has a reliable energy source to keep its data centers running smoothly as AI continues to grow.

To put things into perspective, by 2027, energy consumption tied to AI is expected to jump by 64%, reaching a staggering 134 terawatt-hours annually. That’s the equivalent of the total electricity use of countries like Sweden or the Netherlands. So, yeah, this is a big deal. And Amazon isn’t the only one sweating over this—Google, Apple, Tesla, and the rest of the tech giants are all in the same energy-hungry boat.

(Source: Futurism)

Now, let’s talk about the bigger picture. The U.S. energy grid is aging, with about 70% of transmission lines nearing the end of their 50 to 80-year lifespan. Combine that with the growing demand from electric vehicles, smart homes, and other tech innovations, and it becomes clear why Amazon is turning to nuclear power as a safety net.

But before jumping to conclusions, it’s important to consider what’s driving this decision. Big Tech has been putting a lot of emphasis on sustainability, with companies like Microsoft and Google making serious commitments to reduce their carbon footprints. But here’s the catch: the rapid expansion of AI is making these goals harder to achieve. For instance, Microsoft’s carbon emissions have jumped by 29% since 2020, mainly due to the surge in AI-driven data centers.

So, Amazon’s move into nuclear power is a clear wake-up call. The world of AI is evolving fast, and with it comes an energy crunch that even the biggest tech companies are struggling to keep up with. Next time you ask Alexa to order your latest must-have, just remember: there’s a whole lot of energy behind that simple request. And companies like Amazon are pulling out all the stops to make sure the lights stay on—quite literally.

And of course, I couldn’t end the article without giving you some stock names to take advantage of this AI energy trend…

First, Exelon Corporation (EXC) is a top U.S. nuclear power provider, producing 19% of the nation’s nuclear energy. With AI’s energy demands soaring, Exelon stands to benefit from the push for reliable, carbon-free power, making it a strong contender.

Then there’s AMD (Advanced Micro Devices, Inc.), a key player in semiconductors. As AI grows, the need for powerful, energy-efficient computing hardware like AMD’s will only increase, positioning them to capitalize on this trend.

Lastly, NextEra Energy (NEE) is a leader in renewables, particularly wind and solar. As AI’s energy needs rise, so will the demand for clean energy solutions, making NextEra a compelling choice.

In short, Exelon, AMD, and NextEra Energy are all positioned to benefit from the AI-driven energy surge. Keep an eye on these stocks as this story unfolds.

Stock.News has positions in Amazon, Apple, Google, Tesla, and Microsoft.