The Racket Continues
With no sense of shame for that failure, one of the two companies involved in that fiasco recently expressed an interest in selling this project. On January 22, Santee Cooper’s President and CEO wrote, “We are seeing renewed interest in nuclear energy, fueled by advanced manufacturing investments, AI-driven data center demand, and the tech industry’s zero-carbon targets…Considering the long timelines required to bring new nuclear units online, Santee Cooper has a unique opportunity to explore options for Summer Units 2 and 3 and their related assets that could allow someone to generate reliable, carbon emissions-free electricity on a meaningfully shortened timeline”.
A couple of numbers to put those claims about timelines in perspective: the average nuclear reactor takes about 10 years to go from the beginning of construction—usually marked by when concrete is poured into the ground—to when it starts generating electricity. But one cannot go from deciding to build a reactor to pouring concrete in the ground overnight. It takes about five to ten years needed before the physical activities involved in building a reactor to obtain the environmental permits, and the safety evaluations, carry out public hearings (at least where they are held), and, most importantly, raise the tens of billions of dollars needed. Thus, even the “meaningfully shortened timeline” will mean upwards of a decade.
Going by the aftermath of the Deepseek, the AI and data center driven energy demand bubble seems to have crashed on a timeline far shorter than even that supposedly “meaningfully shortened timeline”. There is good reason to expect that this AI bubble wasn’t going to last, for there was no real business case to allow for the investment of billions. What DeepSeek did was to also show that the billions weren’t needed. As Emily Bender, a computer scientist who co-authored the famous paper about large language models that coined the term stochastic parrots, put it: “The emperor still has no clothes, but it’s very distressing to the emperor that their non-clothes can be made so much more cheaply.”
But utility companies are not giving up. At a recent meeting organized by the Nuclear Energy Institute, the lobbying organization for the nuclear industry, the Chief Financial Officer of Constellation Energy, the company owning the most nuclear reactors in the United States, admitted that the DeepSeek announcement “wasn’t a fun day” but maintained that it does not “change the demand outlook for power from the data economy. It’s going to come.” Likewise, during an “earnings call” earlier in February, Duke Energy President Harry Sideris maintained that data center hyperscalers are “full speed ahead”.
Looking Deeper
Such repetition, even in the face of profound questions about whether such a growth will occur, is to be expected, for it is key to the stock price evaluations and market capitalizations of these companies. The constant reiteration of the need for more and more electricity and other resources also adopts other narrative devices shown to be effective in a wide variety of settings, for example, pointing to the possibility that China would take the lead in some technological field or the other, and explicitly or implicitly arguing how utterly unacceptable that state of affairs would be. Never asking whether it even matters who wins this race for AI. These tropes and assertions about running out of power contribute to creating the economic equivalent of what Stuart Hall termed “moral panic”, thus allowing possible opposition to be overruled.
One effect of this slew of propaganda has been the near silence on the question of whether such growth of data centers or AI is desirable, even though there is ample evidence of the enormous environmental impacts of developing AI and building hyperscale data centers. Or for that matter the desirability of nuclear power.
As Lewis Mumford once despaired: “our technocrats are so committed to the worship of the sacred cow of technology that they say in effect: Let the machine prevail, though the earth be poisoned, the air be polluted, the food and water be contaminated, and mankind itself be condemned to a dreary and useless life, on a planet no more fit to support life than the sterile surface of the moon”.
But, of course, we live in a time of monsters. At a time when the levers of power are wielded by a megalomaniac who would like to colonize Mars, and despoil its already sterile environment.
