The $100 billion Stargate joint venture—spearheaded by OpenAI, Oracle, and SoftBank Group—will be powered, at least in part, by renewable energy, including solar and battery storage, according to reports. SoftBank-backed SB Energy is expected to develop the necessary infrastructure, though renewables are unlikely to serve as the venture’s sole energy source.
As artificial intelligence and cloud computing expand at an unprecedented pace, technology firms are racing to secure sufficient power to sustain their vast data centers. The U.S. Department of Energy estimates that data centers could account for as much as 12% of national electricity consumption by 2028, a sharp increase from 4.4% in 2023. This surge in demand has raised concerns of a potential energy shortfall, with projections indicating that half of all new data centers could face power constraints by 2027.
Against this backdrop, nuclear power has emerged as a favored solution among major technology companies. Google recently secured a 500-megawatt deal with nuclear startup Kairos, while Microsoft has committed to restarting one of the decommissioned reactors at Three Mile Island. Meanwhile, data center operator Switch has entered an agreement with Oklo, a Sam Altman-backed small modular reactor firm, to develop 12 gigawatts of nuclear capacity.
Despite renewed interest, the nuclear sector continues to grapple with cost overruns and delays. A new wave of nuclear startups aims to address these challenges by modularizing and mass-producing reactor components, a strategy intended to expedite regulatory approvals and accelerate construction. However, no startup has yet completed a reactor, and commercial deployment is not expected until at least 2030, leaving the near-term energy gap unaddressed. Similarly, natural gas power plants—another potential energy source for data centers—require years to build and bring online.
By contrast, solar and wind power present a more immediate solution. Compared with nuclear and natural gas facilities, renewable energy projects can be developed in roughly half the time. Studies indicate that solar farms can be completed in an average of 18 months, benefiting from their modularity, which allows them to begin generating power even before full-scale deployment is achieved.
For data centers, grid interconnection—a process that often represents the most time-consuming phase of a renewable energy project—can be bypassed in favor of direct power sourcing. Given the scale and urgency of the Stargate initiative, regulatory approvals may also be expedited, further positioning solar as a leading candidate to support the venture’s energy needs in the short term.
As the AI-driven demand for computing power continues to mount, the search for sustainable, scalable, and rapidly deployable energy solutions remains a critical challenge for the tech industry.
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