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Phantom energy: New report exposes empty promises behind nuclear power and data centers

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Phantom energy: New report exposes empty promises behind nuclear power and data centers

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The push for nuclear-powered data centers is entirely dependent on technology that remains commercially unproven and prohibitively expensive, according to a new report released today by the Australian Conservation Foundation.

Several Coalition shadow ministers are promoting nuclear power, particularly small modular nuclear reactors, or SMRs, as a potential energy source for data centers.

Shadow energy minister Dan Tehan, Nationals leader Matt Canavan, Nationals deputy Bridget McKenzie, shadow minister Andrew Hastie and Liberal Sen. Jonno Duniam have all said nuclear power should play a role in supplying electricity to data centers.

"SMRs are presented as a solution to Australia's future energy needs, but they remain a theoretical answer to a very real and rapidly growing challenge: decarbonizing the electricity system while meeting increasing demand from electrification, industry and data-intensive technologies," said ACF's nuclear-free campaigner Mia Pepper.

"Australia has more than 160 operating data centers and many more are planned.

"The rapid spread of data centers—including proposals to power them with coal and gas—has sparked serious and widespread concerns about energy, water and land use, health impacts, electricity prices and the growth of AI.

"The International Energy Agency expects renewables to provide around two-thirds of new electricity generation for data centers between 2024 and 2035, compared with just 6% from nuclear—and much of that projected nuclear contribution relies on SMRs suddenly becoming commercially viable.


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