Meta’s (META) ambitious plans to power a new AI data center with nuclear energy have hit an unexpected hurdle due to environmental concerns, according to an exclusive Financial Times report. Initially, Mark Zuckerberg intended to partner with an existing nuclear power plant operator to provide carbon-free electricity for Meta’s AI projects. However, complications arose when a rare species of bee was discovered on land adjacent to the planned data center site.
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As a result, Zuckerberg informed Meta employees in an all-hands meeting last week that this environmental finding, along with other regulatory and logistical challenges, complicated the feasibility of the project.
META’s Setback Comes Amid Big Tech’s Push Into Nuclear Power
This setback for Meta comes as major Big Tech companies like Amazon (AMZN) and Google (GOOGL) are entering nuclear power partnerships to meet the rising energy demands of AI. This is because training and running AI models consume immense power, with a single AI query reportedly consuming up to ten times the energy of a standard Google search.
Even with this setback, Meta is actively exploring alternative carbon-free energy sources, including nuclear, to support its AI ambitions.
Zuckerberg has expressed frustration with the limited nuclear energy options available in the U.S., especially as China rapidly expands its nuclear infrastructure. According to the report, Zuckerberg noted that if Meta’s deal had gone through, it would have positioned the social media giant as the first tech company to deploy nuclear-powered AI on a large scale.
Why Has Nuclear Power Become Important for Big Tech?
For Big Tech companies, nuclear power is increasingly seen as a viable solution for delivering reliable, around-the-clock energy to support advanced AI development. However, it comes with significant challenges, as nuclear plants are costly to build and there are concerns over the buildup of toxic radioactive waste. The industry has also historically relied on nuclear fuel imported from Russia, raising additional geopolitical concerns.
Is Meta Stock a Good Buy?
Analysts remain bullish about META stock, with a Strong Buy consensus rating based on 41 Buys, three Holds, and one Sell. Year-to-date, Meta has surged by more than 60%, and the average META price target of $654.23 implies an upside potential of 14.85% from current levels.
