The way we power our world is undergoing a remarkable transformation driven by new technologies, geopolitical events, and evolving needs. From the surge in artificial intelligence to the urgent requirement for reliable energy in remote locations, the global energy market is adapting. Understanding these shifts is key to building a resilient and sustainable energy future for everyone.
Geopolitical events have profoundly impacted the global energy landscape. The conflict in Ukraine, beginning in early 2022, triggered a major global energy crisis. It disrupted oil and natural gas supplies, particularly for Europe, which was heavily reliant on Russian energy. As the International Energy Agency (IEA) noted, this led to volatile prices and a renewed focus on energy security and diversification of energy sources worldwide.
Alongside these geopolitical shifts, one of the most significant new technological factors is the explosive growth of Artificial Intelligence (AI). As StarCore CEO David Dabney explains, “AI has become an element of almost every technical conversation. Most places around the world do not have sufficient energy in their grids to supply it.”
This surge in demand is already straining existing power grids. In fact, the IEA projects that electricity consumption from data centers, AI, and cryptocurrencies could double by 2026. Their total electricity consumption would reach the equivalent of Japan’s.
Compounding these challenges is the state of our existing energy infrastructure. Much of it was built decades ago and is now showing its age. “It needs a severe maintenance upgrade,” says Dabney, “in the same way as our more visible infrastructure such as bridges, roads and airports.”
The U.S. Department of Energy has highlighted that modernizing the grid is essential to improve resilience against extreme weather, accommodate new energy sources, and enhance overall reliability. Dabney explains that “the cost of these necessary upgrades is huge, because of the overall size of the grids and associated connections.”
These combined pressures are leading to a fresh look at energy solutions that can offer consistent, reliable power. There’s a growing recognition that we need flexible options. Dabney points out that “it would be much better if we had dispatchable energy. If we could drop it in places where we have shortages, or where we have unstable parts of the grid.” This is where innovative technologies like Small Modular Reactors (SMRs) are gaining traction.
Interestingly, the conversation around nuclear energy itself is changing. “While climate change was the initial driver for exploring low-carbon energy sources,” says Dabney, “now it’s economics, safety, ease of application, dispatchability – all of these concepts have come into play.” This is leading to a significantly lower financial risk profile for the nuclear industry. It is creating newfound investor confidence that is crucial for bringing new technologies to market.
The global energy landscape is clearly in flux. Geopolitical disruptions, the rise of AI, the need to update aging infrastructure, and the growing demand for reliable, dispatchable power are all shaping a new energy paradigm. As we navigate these changes, innovative solutions like SMRs are poised to play an increasingly important role in powering our future securely and sustainably.
