What will power the grid in 2035? The race is wide open

As tech companies face rising energy demands, they explore new power sources for 2035, amidst challenges with natural gas supply chains exacerbated by geopolitical tensions. Innovations in small modular reactors (SMRs) and fusion power are on the rise, with several startups preparing for commercial operation by the early 2030s. However, competition from affordable renewable energy and battery technologies remains a critical challenge.

Key Points

• AI's growing power demands are leading tech firms to seek new energy sources.
• Natural gas faces supply chain vulnerabilities due to geopolitical events, specifically the attacks on Qatari infrastructure.
• A waitlist for gas turbines could extend well into the early 2030s, posing risks to the natural gas industry.
• SMR startups plan commercial plants by the late 2020s, with companies like Kairos Power and Oklo at the forefront.
• Fusion technology promises large energy outputs and several startups aim for first reactors in the early 2030s.
• Cost remains a significant barrier for both SMRs and fusion, with current nuclear power more expensive than gas.
• Renewable energy sources, particularly solar and wind, are becoming increasingly competitive, threatening traditional power paradigms.

Relevance

• The energy transition aligns with 2025 IT trends focusing on sustainable technology and renewable energy innovations.
• Historical reliance on fossil fuels is being challenged by modern energy crises, pushing for faster adoption of alternatives.
• Investment in clean tech startups reflects a tech industry pivot towards long-term sustainability as a response to climate change.

With the energy landscape shifting rapidly, investments in small modular and fusion reactors present potential to reshape power generation by 2035 amid challenges posed by natural gas and competitive renewables.