According to energy expert Dan Yergin, Big Tech is playing a key role in the resurgence of nuclear power.

• After years of setbacks, nuclear power is regaining popularity in the U.S., with big tech leading the charge.
• The growing competition among tech giants such as Microsoft, Amazon, and Google for dominance in the AI industry results in an increasing demand for energy-consuming data centers to power the technology.
• Dan Yergin, a long-time energy market veteran, described the turnaround as nothing short of extraordinary.

After years of setbacks, nuclear power is gaining traction in the U.S., with big tech leading the charge.

The increasing competition among tech giants, such as Microsoft and Google, to dominate the AI industry results in a growing demand for energy-consuming data centers to power the technology.

In the past two months, three companies have signed agreements to increase nuclear power generation. Notably, Microsoft recently struck a 20-year deal with Constellation Energy to restart a reactor at Three Mile Island in Pennsylvania, where the most severe nuclear meltdown in U.S. history occurred in 1979. The reactor is set to reopen in 2028.

At the annual International Monetary Fund meetings in Washington, Dan Yergin, a long-time energy market veteran, described the turnaround as nothing short of extraordinary while speaking to CNBC.

"The reopening of the Three Mile Island power plant is symbolic, according to Yergin, who told CNBC's Karen Tso on Tuesday."

He stated, "Reliable 24-hour electricity is necessary for Big Tech, and it cannot be obtained solely from wind and solar power."

According to Yergin, who has authored several books on energy, including "The Prize" and "The New Map," the energy sector is experiencing significant growth in funding. He specifically mentioned $7 billion in venture capital being invested in nuclear fusion alone, without considering the financing for nuclear fission, another energy-generating process.

"The United States is experiencing a significant shift in its electricity demand, with a sense of anxiety about how to meet the growing demand. Nuclear energy is being reconsidered as a solution, with small nuclear reactors and big tech seeking to contract for the output of existing nuclear power plants. This change is remarkable."

New data centers, factories, electric vehicles, and hotter and longer summers are causing a surge in electricity demand after a 15-year plateau. According to a recent Energy Department memo cited in numerous press reports, the U.S. power grids could see up to 25 gigawatts of new data center demand by 2030.

The U.S. Department of Energy recently announced a $1.5 billion loan for the revival of the Holtec Palisades nuclear plant in Michigan, set to be the first American nuclear plant to restart in late 2025. Meanwhile, Google announced in mid-October that it would purchase power from Kairos Power, a developer of small modular reactors, to help "deliver on the progress of AI."

The International Energy Agency predicts that global electricity consumption from data centers, artificial intelligence, and the cryptocurrency sector will increase from an estimated 460 terawatt-hours (TWh) in 2022 to over 1,000 TWh in 2026.

— CNBC's Ryan Browne contributed to this report.