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Wind and Solar Will Power Datacenters More Cheaply Than Nuclear, Study Finds (theregister.com) 131

An anonymous reader quotes a report from The Register: Renewable energy sources could power datacenters at a lower cost than relying on nuclear generation from small modular reactors (SMRs), claims a recently revealed study. ... [A]nalysis from the Centre for Net Zero (CNZ) says it would cost 43 percent less to power a 120 MW data facility with renewables and a small amount of gas-generated energy, when compared with an SMR. It claims that a microgrid comprising offshore wind, solar, battery storage, and backed up by gas generation, would be significantly cheaper to run annually than procuring power sourced from a nuclear SMR.

[...] CNZ describes itself as an open research institute, founded by Octopus Energy Group in the UK, and claims to advise the State of California and Europe's International Energy Agency as well as the British government. While CNZ's study applies to the UK sector, where energy costs are among the highest in the industrialized world, it is likely that the overall conclusion would still be valid in other countries as well. Its analysis shows that renewables can meet 80 percent of the constant demand from a large datacenter over the course of a year. Offshore wind can provide the majority of load requirements, with gas generation backed by battery storage as a stopgap source of power representing the most cost-optimal mix.

Greater capacity in the on-site battery storage system would reduce the reliance on gas power, and this would likely happen over time as the cost of such systems is expected to come down, the report claims. But perhaps the real kicker is that CNZ estimates that microgrids powered largely by renewables could be built in approximately five years, while operational SMRs are not expected to be widely available until sometime in the next decade. CNZ says that it calculated the typical yearly resource cost (capex and opex) of powering a datacenter with a nuclear SMR, and modeled this using Python for Power System Analysis (PyPSA), an open source energy modeling tool, against two renewable energy scenarios. One was the wind, solar, battery, and gas mix, while the other omitted solar.

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Wind and Solar Will Power Datacenters More Cheaply Than Nuclear, Study Finds

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  • by Anonymous Coward on Friday September 26, 2025 @10:48PM (#65686432)

    But all those windmills in Texas are killing whales!

    • by lsllll ( 830002 )

      Well, it looks like [statista.com] nuclear is right in between solar and wind.

      • Re: (Score:1, Interesting)

        by MacMann ( 7518492 )

        Well, it looks like nuclear is right in between solar and wind.

        Consider that is a statistic that includes the very deadly Chernobyl disaster, a reactor that failed in the most basic of safety mechanisms like a containment dome used everywhere else in the world. Had there been a containment dome, such as those at Fukushima and Three Mile Island, then Chernobyl would likely have been a relative nonevent like Fukushima and Three Mile Island. Chernobyl would likely have still ended up as an expensive cleanup event, people could have still died, but it would have meant th

        • the very deadly Chernobyl disaster, a reactor that failed in the most basic of safety mechanisms like a containment dome used everywhere else in the world.

          They had a alternative containment strategy and it failed to operate as designed. Just like the Three Mile Island containment failed to operate as designed except with far more catastrophic results at Chernobyl. Your argument seems to be until there is an equally catastrophic failure of design we should assume our engineers are smarter than Ukrainian engineers. Chernobyl is just a living example of the possible damage if you are wrong. Give us the dice, we haven't rolled snake eyes so you can be sure we won

          • They had a alternative containment strategy and it failed to operate as designed.

            So you admit that not all nuclear power plants have the same safety features. Tell me something, how may other nuclear power plants have the same "alternative containment" that failed at Chernobyl? I'm fairly certain that all other reactors with this flawed containment were in the Soviet Union, and after Chernobyl those reactors were modified to have a new containment structure, were decommissioned, or were under construction and never completed.

            Just like the Three Mile Island containment failed to operate as designed except with far more catastrophic results at Chernobyl.

            I have no idea what you are talking about a since I could fi

            • So you admit that not all nuclear power plants have the same safety features.

              That is your admission, since you are claiming current plants are ALL safe.

              Everyone involved in nuclear power learned from Chernobyl so it is safe to assume they are all smarter now. You expect they learned nothing from the experience? It seems you learned nothing from the experience.

              What I learned is not to trust over-confident engineers who claim they have the perfect ability to anticipate every future problem. A lesson you clearly did not learn.

              Or, more accurately, the proponents of nuclear power who claim that perfect ability for them even if the engneers themselves know better.Every computer programmer knows their programs will have bugs even after they do their best to catch them. But the marketing dep

  • by will4 ( 7250692 ) on Saturday September 27, 2025 @12:03AM (#65686482)

    A bit of clicking and the research institute is funded by Octopus Energy Group which is funded by Octopus Group, a venture capital firm.

    Suggestion here is to not report research paid for by venture capitalists for the same reason why /. should be skeptical of oil industry lobbyist funded research.

    Obligatory: https://en.wikipedia.org/wiki/... [wikipedia.org] where research is published because it agrees with a political viewpoint.

    • A bit of clicking and the research institute is funded by Octopus Energy Group which is funded by Octopus Group, a venture capital firm.

      Maybe they could venture some capital and build a demo then.

      • We should start by asking the research think tanks, political parties, media outlets a simple "How much did you spend last year to directly build solar or wind based electricity projects?"

        If not, then follow up with "How much are you going to spend this year on them?"

        The 50+ year of talk only researchers, institutes, non-profits, NGOs, World Bank, UN and politicians has been talk with no direct building action.

        It's all "someone else has to take the first step" nonsense.

        This is not left, right or center. It

        • Good idea, but I'll extend it a bit.

          From now on, only people who have built nuclear plants are allowed to argue for them.

          I think your suggestion has merit. It solves a lot of problems.

          • by will4 ( 7250692 )

            My idea is that talk only nonprofit, think tanks, research centers need to pay something of their budget to directly build renewable energy generating plants.

            They have spent 50+ years talking about it and always want 'someone else to take the first step' so that they can keep talking about it.

            The key phrase here is that many nonprofits, experts, politicians, social agitators, diplomats advocate for something and always want 'someone else to take the first step, pay the taxes, fund it, etc.'.

            It is time that

        • "If not, then follow up with "How much are you going to spend this year on them?""
          I'd drop this question. Promises are cheap, as every international conference on CO2 proves.
          In short, let's disregard anyone without a proven track record of already investing in the field. That would make what they say vastly more credible.

          • I like your suggestion. It helps us eliminate the "activists" who are all talk and no action. Maybe we should be asking them how much they've spent on these projects so far this year.
    • by rta ( 559125 )

      Interesting. what got me in the summary is that they want to use offshore wind. Now they do give the disclaimer that it's UK market that they're basing it on, but in the US off-shore wind is like 2+x as expensive as on-shore, and not near competitive basically with anything right now.

      w/ some handwaving and not counting for storage or dispatchability, on-shore wind and solar are , in the US the cheapest to new build (in favorable areas) then gas, then nuclear and then off-shore wind.

      Not too clear why o

      • by OrangeTide ( 124937 ) on Saturday September 27, 2025 @01:06AM (#65686562) Homepage Journal

        Storms resistance makes for a difficult design requirement with off shore wind on the Eastern seaboard. The extremes in the US are worse than what the UK typically faces on its shores.

        • Is that why the USA has only three offshore windfarms all of which are located on the Eastern Seaboard? You want the challenge?

          Sorry but your post just doesn't understand the realities of wind farm design. These are not difficult design requirements. You want a difficult design requirement look at actual deep-water projects in the gulf. If the energy industry can drill and operate hundreds of wells at multiple km depths and trivially process the result on floating structures in cyclonic conditions a shitty

          • The lack of lease availability in the Gulf is the current obstacle there rather than the depth.
            There are are some projects in the planning stages on the Pacific Coast, with lease agreements completed, but none in the Gulf of Mexico. But given the current administration I think the California projects will be indefinitely mothballed.

            Of the Eastern seaboard sites, Coastal Virginia Offshore Wind and South Fork Wind are at a 40 m depth. To put that into perspective, Hywind Scotland's 110 m depth. There are mult

        • by AmiMoJo ( 196126 )

          It's not that hard, especially compared to the alternatives. And it's a huge opportunity to develop the technology before anyone else.

    • This seems like something that just shouldn't be ignored:

      While CNZ's study applies to the UK sector, where energy costs are among the highest in the industrialized world, it is likely that the overall conclusion would still be valid in other countries as well.

      "Where energy costs are among the highest"

      "It's likely...would still be be valid in other countries"

      Please, tell me how big the required battery is to make this work, and how much this battery will cost.

    • Suggestion here is to not report research paid for by venture capitalists for the same reason why /. should be skeptical of oil industry lobbyist funded research.

      By the same logic we should not pay attention to research funded by anyone at all.

      • By the same logic we should not pay attention to research funded by anyone at all.

        I'm not sure that follows. While I can agree that any study will have a bias due to who is writing the check there must be a way to find organizations that make their bias clear up front, have little reason for their bias to color the results, or share their bias with the intended audience.

        What do people want from the energy they consume? If I were to guess it is some balance on costs in dollars and costs in harms like global warming and air pollution. If we had infinite money then we'd do all we could t

    • by thegarbz ( 1787294 ) on Saturday September 27, 2025 @04:03AM (#65686666)

      Maybe you could address the numbers and the data rather than rely on ad-hominem attacks, especially when the conclusion they reached is mind bogglingly fucking obvious. That is that the two technologies currently the cheapest on the market, paired with batteries which have plummeted in costs are cheaper than a fantasy technology that doesn't exist yet which is effectively a scaled down, less economical version of the most expensive technology on the market.

      • by CRC'99 ( 96526 )

        Except you're just wrong.

        By the time you deploy enough solar and wind to charge the batteries *as well as* supply the load while the batteries charge, you're deploying ~6-10x your required load in watts. Add to that the MWh required (remember, power vs capacity), and you'll also need 3-4x the amount of storage as your daily usage - most of the time, that will be idle and unused.

        Capacity factor in renewables still isn't anywhere near traditional generation - whatever type you compare it to. Nuclear is normal

        • It sounds scary having to overprovision something, but you simply are clueless as to the underlying numbers. Yes all analysis takes into account having to over deploy wind + solar, and takes into account that storage doesn't generate anything.

          It still comes out cheaper. Even with the capacity factors taken into account. It comes out cheaper during construction, it comes out hysterically cheaper during operation, and let's not even get into the discussion of decommissioning since that's a dirty word that the

    • by kick6 ( 1081615 )

      A bit of clicking and the research institute is funded by Octopus Energy Group which is funded by Octopus Group, a venture capital firm.

      Suggestion here is to not report research paid for by venture capitalists for the same reason why /. should be skeptical of oil industry lobbyist funded research.

      Obligatory: https://en.wikipedia.org/wiki/... [wikipedia.org] where research is published because it agrees with a political viewpoint.

      We need to get past this idea that the only unbiased source of research funding is federal dollars. Because guess what? They're biased too.

  • There are a lot of risks in the SMR approach, but some of these data centers being built are pretty much capable of consuming all the power from an AP1200. The SMRs add redundancy and an opportunity for co-location where the value is greater than the feed-in tariff alone.

    If SMRs are able to hit an LCOE of around $200/MWh they still might work out cheaper than a solar farm 200 miles away. Offshore wind is likely more cost effective for costal data centers, but you lose that benefit of co-location.

    • Re:Hard to believe (Score:5, Informative)

      by ShanghaiBill ( 739463 ) on Saturday September 27, 2025 @01:19AM (#65686570)

      There are a lot of risks in the SMR approach

      The biggest risk is that they don't exist yet.

      all the power from an AP1200.

      What is an AP1200?

      If you mean AP1000 [wikipedia.org], those take twenty years to build and cost 300% of the initial estimate.

    • but some of these data centers being built are pretty much capable of consuming all the power from an AP1200.

      [Citation required]. The current largest data centre in the world uses less than 1/10th of the power from an AP1200.

      • The 1GW threshold is multi-hall facilities. Switch has been well over 100MW per hall for over a decade. I believe FB has a 2GW facility under construction in Louisiana, and Microsoft is over 400MW per. You also have locations with clusters of multiple independent facilities that are contenders.

        SMRs simplify the scaling problem though.

        • No FB's facility isn't 2GW. There's a 2GW power station going in because economies of scale benefit producing power at mass, but it's not dedicated to Facebook's datacentre. Their Power Purchase Agreement was for less than 1/4 of the new power station capacity.

  • Stitch up. Here is the report https://microgridai.centreforn... [centrefornetzero.org] How to accelerate the UK’s AI revolution

    Latest strike price for offshore wind (AR7) is UKP113/MWh, they've assumed 50. Oh.I imagine an error of 125% might change the results a bit.

  • Why can we as Americans not apply science to a problem? Everything becomes "fungible", the speed of light can be different in America, the gravity of earth can be different. All of this can be measured and predicted. Why not apply science to the cost of oil, nuclear, wind, and solar and come up with a single answer?
    • Maybe it's because a majority of Americans reject science and therefore elect governments that reject science? All out of spite that the people doing science are smarter than them.
    • When you analyze the costs it goes against political dogma they’ve been trained on and it angers them. They respond by doubling down.

      • by shanen ( 462549 )

        Actually looking for references to training LLMs, but yours is the only mention of "train" in the discussion (so far).

        If I've reconstructed the context, then I think the answer to the branch question is related via the training, though my original focus was on the economic advantage of deliberately scheduling training for periods when the renewable energy is available. Sun shining or wind blowing... No need to store the electricity if you're always ready to use it.

        But branching back to the thread OP, the an

      • I miss the days of George Will (former Republican), where he took principled stands on issues, was consistent, and did not degrade nor talk over his "perceived enemies". He respected everybody. I actually had a very difficult time refuting his arguments, and have an easy time refuting MAGA arguments. All I hear back from them is close mindlessness talking points, and they seem trained to just talk over other people like a brainwashed tape recorder.
  • We are at the apex of wind and solar, itâ(TM)s as cheap as itâ(TM)s likely to get. Between government subsidies and market investments there is a dearth of companies providing those products . SMRs have just started and are first generation mostly prototypes. As the market adoption grows the cost will come down significantly.
  • As soon as I saw "Centre for Net Zero" I knew this couldn't be trusted. Its like asking vegans to do a study on meat.
    • As soon as I saw "Centre for Net Zero" I knew this couldn't be trusted. Its like asking vegans to do a study on meat.

      They even failed on being net zero. From the fine article:

      But analysis from the Centre for Net Zero (CNZ) says it would cost 43 percent less to power a 120 MW data facility with renewables and a small amount of gas-generated energy, when compared with an SMR.

      It claims that a microgrid comprising offshore wind, solar, battery storage, and backed up by gas generation, would be significantly cheaper to run annually than procuring power sourced from a nuclear SMR.

      I'd ask them to remove the option for "a small amount of gas-generated energy" (whatever "small" means in this context) then recompute. If the goal is to be rid of electricity from fossil fuels then they failed to make their point.

      They hobbled the nuclear power option by limiting it to SMR than already established technologies. They then gave wind, solar, and storage a cost advantage by allowing for some natural gas backup.

      This is clearly a flawed

  • by nevermindme ( 912672 ) on Saturday September 27, 2025 @06:08AM (#65686764)
    If I have half a billion burning a hole in my pocket, and in progress on a contract to build a data center, I would want the power agreement tied down before the land clearing took place, because I would be spending another half billion in operations over the next 7 years. Getting the local utility company to extend the grid to my selected location is a matter of 6 weeks of communications and the construction to lead off with the building of substation to the utility companies requirements. The solar company or wind company that wants to sell my data center power and be backed up by the utility when the sun does not shine and the wind does not blow. The utility has a rate to provide this highly variable service, it is far in excess of the fixed rate that I expect to pay for my datacenter, as my customers in the data center are fine with 20cents/KWH and I am fine with 18cents/KWH daytime rates. My customers expect 10/KWH at night, Ill live with 9/KWH to pay for the power part of a data center. The solar and wind companies can offer me 16c/KWH daytime and perhaps just pass through 25c/KWH night time from the utility. Not one of these people have told me of the 10032c/KWH they are going to need to invest in storage.

    This is exactly opposite the demand curve. The only thing I can offer as the DC operator is that 80-160 hours a year I would be willing to fire up both my A and B side generators and use a bit of my UPS lifetime to cut my load off the grid. The utility at least has to guarantee me that they will pay for the NG cost for the generators.

    If I were building 10 data centers that could be turned on and off in 10 minutes, cheap unreliable power would be attractive, attractive enoght to hire weather forcasters 24/7/365 to tell me top up my 10 minutes of backup power at prime rates because it certain that the automation will flip the switch. But I am building 2 data centers to finance the other 8 over the next 20 years, it is right there in my business plan. With a pair of small power plants within my grid operator footprint, I do not have to invest a ton in storage and THE COSTS ARE FIXED UP FRONT. My investors only risks are returns on AI vs inflation and interest rates. If someone is willing to produce a must deliver contract at anything under 15c/KWH and pro rate that with inflation as a data center, they have a customer of the datacenter and their tenates. The data center clients are free to have a contract with the utility and the solar wind to shut down compute for a fee/hr, those clients can offload to my competitor, I really cannot write a contract telling them they must.

    I have to figure when I am contracting power for the 9th and 10th data center, the power provider has figured out how to make this deal profitable. The weathermen are already on payroll, so that is a fraction cheaper per region. Most importantly I have a standard contract to take to solar/wind provider, the nuclear competitor has figured out the downsides, the utility has gotten over dreams of windfall profits and the customer of the data center has figured a strait forward load shed agreement with both the DC operator, the utility and the provider.

    Or a Power Plant operator can sign a fix rate contract with a data center to maintain 92% utilitzation of a stated max for 10 years with the rate specified at the time of signing. Any growth is on another contract, directly related to the cost of construction. Nuclear or NG, 10 year contract with a 10 year option for 99.99% power uptime is 3 pages of tables on a contract. Solar, Wind has to be able to offer the same known cost and that same 99.99 uptime.
  • CO2 from fossils cost easily 5,000$ per ton in collateral damage. Nuclear is not as easily calculatable, but sure nuclear power plants make up good targets in times of war.

    No study needed for that calculation then ..

  • This is the problem with a lot of studies. Who funded it and what's their motivation. I just have to guess about the "Centre for Net Zero." I'm sure their hearts in the right place, not so sure about their wallets. This is perhaps why the free market works a little better than study ideas or government funded projects. Trust the people that are spending their money to build and power a data center to find the cheapest power source. Their wallets are usually at risk.
  • by Anonymous Coward

    Cheap energy will power things that need energy cheaply! Who would have thought.

    Do you know what it costs alone to safely decomission a nuclear power plant? If you take that in account, nuclear is the most expensive option, and we did not even talk about how to keep the used rods safe for the next million years. And surprise, the fresh rods also do not grow on trees.
    In 1955 they hoped that plutonium would be available in every pharmacy in 1985, but now we have 2025 and the stuff is still expensive as hell.

  • by arcade ( 16638 ) on Saturday September 27, 2025 @08:27AM (#65686912) Homepage

    The Economist (www.economist.com) convinced me with their June 22nd 2024 issue ( https://www.economist.com/week... [economist.com] ). Specifically, see the article: https://www.economist.com/inte... [economist.com] among others in that issue.

    Solar is cheap, abundant, and will come out on top due to economic reasons alone. No subidies required.

    Batteries are also needed, of course, but they're also dropping in price as China ramps up production.

    The entire thing will be a slam dunk. It'll be entirely obvious 5 years from now, but we're still in the phase where a lot of people haven't caught on and realized that this is the cheapest option.

    • Solar is cheap, abundant, and will come out on top due to economic reasons alone. No subidies required.

      Batteries are also needed, of course, but they're also dropping in price as China ramps up production.

      The entire thing will be a slam dunk. It'll be entirely obvious 5 years from now, but we're still in the phase where a lot of people haven't caught on and realized that this is the cheapest option.

      You are talking about the wrong thing. The salient issue isn't generating energy it is storing it so it can actually be used at the time and place it is actually needed.

      The economist article you cite briefly touches on and then dismisses reality. "All real issues. But the past 20 years of solar growth have seen naive extrapolations trounce forecasting soberly informed by such concerns again and again. "

    • > realized that this is the cheapest option.

      It's cheaper if the financing an be achieved.

      The capital costs for a retrofit are impossible for the 60% of this country who live paycheck-to-paycheck.

      Then there's the matter of being responsible for your own energy system maintenance in the highly-distributed model (which is more resilient). Folks with ceiling bird aren't going to.

      And of course I can design my own system but many need professional help and it's more difficult than plumbing or residential ele

      • by arcade ( 16638 )

        I think I see what happened here; With "people" I didn't think of individuals adding it as rooftop solar, although that's nice too. I meant people who make financial decisions for power plant buildouts. People who make financial decisions for where their business is going to get power, etc.

        I'm mostly thinking of grid scale projects. Which are already happening in both Texas and Arizona in the US from what I gather from articles in The Economist.

        I'm also thinking of places like the Atacama desert between

  • Scenario 2 is 43.4% the cost of nuclear using 20% gas backup.
    The same scenario is 31.7% the cost of nuclear using 5% gas backup.

    Below 20% you basically run into a brick wall with skyrocketing costs many times what was necessary to get to 80% in the first place /w ever diminishing environmental returns vs burning hydrocarbons. Here it is much worse than the utility modeling because we are talking about microgrids without geographic reach and assumptions with much less baked in diversity in sourcing. One is

  • by mspohr ( 589790 ) on Saturday September 27, 2025 @10:00AM (#65687034)

    Wind and solar with batteries (SWB) has been the absolute least expensive source of energy for several years.
    People keep trying to revive nuclear but it has always been the most expensive (as well as longest lead time) source of energy.

  • For anyone interested in an objective review of energy sources. [withouthotair.com]. It's out of date having been put together a decade ago, and most of the cost comparisons will be pretty out, but it's still a useful resource, getting rid of the hyperbole you always get from biased protagonists.
    • For anyone interested in an objective review of energy sources.. It's out of date having been put together a decade ago, and most of the cost comparisons will be pretty out, but it's still a useful resource, getting rid of the hyperbole you always get from biased protagonists.

      I do not believe Dr. MacKay's studies are outdated since he gave renewable energy options considerable latitude for showing their best, including potential future improvements, and then showing that nuclear power is superior even if it saw no improvements in the forseeable future.

      If there is a flaw in "Sustainable Energy - Without the Hot Air" then it is in the presentation than anything in the data. Dr. MacKay didn't want to lead people to any conclusion, rather he wanted to show the data and then expecte

      • I didn't mean the analysis from a scientific perspective was out of date; it's still very relevant. I've got a physics background and agree with Scotty that you canny change the laws of physics. Being a decade old doesn't change the math. Rather it was that a lot of the text uses costings which are now well out of date for a range of reasons. It would be useful to see it updated for today's numbers but agree that the conclusions would be the same.
  • haha good one (Score:2, Insightful)

    by groobly ( 6155920 )

    Of course intermittent unreliable power is cheaper than reliable power, if it actually is, which it probably isn't if it includes the need for reliable power.

    • Of course intermittent unreliable power is cheaper than reliable power, if it actually is, which it probably isn't if it includes the need for reliable power.

      From the summary:

      it would cost 43 percent less to power a 120 MW data facility with renewables and a small amount of gas-generated energy

      Renewables plus a gas plant are just as reliable as a nuclear plant. This analysis appears to have taken reliability as a pre-requisite, then with that addressed they compared costs.

      • by CRC'99 ( 96526 )

        We're already starting to get deployments of 47kW per rack.

        Please factor this into your "120MW data centre".

        • We're already starting to get deployments of 47kW per rack.

          Please factor this into your "120MW data centre".

          Given that the comparison is with a Small Modular Reactor, this isn't really relevant. If we end up with GW data centers then the comparison result may change, since it will be comparing a full-sized reactor against much larger renewable plants. I doubt the results will be much different, but they might be.

  • This why I use AWS us-west-2 (Oregon) for my workloads.

    It's powered mostly by hydroelectricity and some solar.

    There's a Facebook data center there (I visited it a few times), along with Apple's "Pillar" data center across the street which nobody can visit.
    To the north is AWS us-west-2, Google, and Microsoft Azure, which are much closer to the hydroelectric dams.

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