The surge in electricity demand driven by the spread of artificial intelligence is reshaping the global energy market. As big tech companies actively review renewable energy and next-generation nuclear technologies to secure stable power supplies, competition over power infrastructure is intensifying.

According to TechCrunch on March 28, about 40 percent of global natural gas consumption is currently used for power generation, and prolonged shortages of gas turbine supplies are worsening energy supply chain instability. In particular, a jump in gas demand is delaying turbine orders, and new equipment supply is expected to be possible only in the early 2030s.

Major countries, including the United States, still rely on natural gas, but geopolitical risks have emerged as a variable. Tensions in the Middle East have hit gas infrastructure, heightening concerns over energy stability, and technology companies are actively seeking alternative power sources.

In this process, small modular reactors, or SMRs, and nuclear fusion are emerging as leading alternatives. SMRs shrink existing reactors to reduce construction costs and time, while fusion can use seawater as fuel and is seen as the ultimate energy source in the long term.

In the SMR field, Kairos Power is building a demonstration reactor, and Oklo is targeting commercialisation in 2028. X-energy and TerraPower are also pushing for commercialisation around 2030.

Competition is also intense in nuclear fusion. Commonwealth Fusion Systems is preparing to start operating a demonstration reactor next year, and Helion has set an aggressive goal of beginning power supply by 2028. Helion, which Sam Altman has invested in, aims to build a reactor to supply power to Microsoft by 2028 and to supply 5 gigawatts in 2030 and 50 gigawatts in 2035. To do so, it would need to build 800 reactors by 2030 and 7,200 reactors after 2030.

Cost remains an obstacle. Current nuclear power and early fusion power costs are about $150 to $170 per megawatt-hour, higher than natural gas generation at about $100. Securing economic viability in the short term is therefore cited as a key task.

At the same time, renewable energy and battery technologies are quickly gaining competitiveness. Solar power costs are continuing to fall, and grid battery prices have also dropped sharply. Form Energy has presented large-scale storage solutions through iron-air batteries, and XL Batteries is developing low-cost storage technology using existing infrastructure.

The power competition in the AI era is expanding beyond simply securing energy to a contest over which technology can achieve economic viability and scalability at the same time. With natural gas, nuclear power, renewables and batteries competing simultaneously, attention is focused on where leadership in the future power market will head.