Tech companies are “sprinting” to build out data centres in the US, but it is still unclear whether they are willing to make big bets on using nuclear power to meet their energy demands, a report from thinktank Carnegie Endowment for International Peace has said.

The Washington-based organisation said the entry of hyperscalers into a rapidly evolving nuclear energy market introduces new dynamics to what has been a highly regulated and slow-moving industry.

As technology companies pursue aggressive AI buildouts, they are seeking innovative ways to meet their energy demands. Nuclear power has entered the conversation as one of the few energy sources capable of delivering the kind of firm, high-density electricity that data centers need while simultaneously allowing companies to maintain public climate commitments.

The report warns of “key entanglement risks” that big tech will need to confront including potential reputational exposure, nonproliferation concerns and management of long-term nuclear waste.