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How Big Tech embraced nuclear power

Microsoft made waves last week when it announced a deal with Constellation Energy to restart a nuclear reactor at Three Mile Island to meet its surging data center power needs, bucking the power source’s seemingly terminal decline.

In the last decade, seven nuclear reactors have been decommissioned in the U.S., while only two new ones have been switched on. Meanwhile, the number of data centers has exploded, with over 10,000 worldwide, half of which are in the U.S. And as cloud computing grows, EPRI, an electric industry research organization, anticipates that the sector’s energy demand will grow by anywhere from 29% to 166% by 2030. 

Today, data centers consume about 4% of U.S. electricity. By the end of the decade, they might use 9%, all while overall demand grows. Hyperscale data centers, like what Microsoft, Google, and Amazon operate — and that startups like OpenAI and Anthropic rely on — are the primary culprit, responsible for 60% to 70% of all data center energy use, according to EPRI. 

For companies like Microsoft, which has ambitions to eliminate its carbon emissions by 2030, growth in cloud computing and AI pose a particular challenge: The firm’s carbon emissions have ballooned some 40% over the last four years, largely a result of expanding data center operations. Google’s carbon emissions have grown, too, some 48% in the last five years. (Amazon says all of its data centers’ energy use is matched by an equivalent amount of renewable power.)

All of that has companies eyeing nuclear as a way to reconcile their breakneck data center growth with their commitments to hit net-zero. In that context, it’s easy to see why nuclear is appealing: Fission reactors can run uninterrupted for years, working at maximum capacity over 90% of the time. Maintenance outages tend to be planned months or years in advance, giving data centers plenty of time to prepare. No wonder Microsoft signed a 20-year agreement with Constellation.

Outside of the new deal, Microsoft also has been investing, participating in a Series A for Last Energy, which is planning to build small modular reactors. 

Not far from Three Mile Island, Amazon recently bought a hyperscale data center that’s directly connected to a nuclear plant, and it’s hiring a nuclear engineer to help AWS develop and acquire nuclear power. 

Investors connected to Big Tech have placed their bets, too. Bill Gates co-founded TerraPower, and he has personally invested over $1 billion in the company; former Microsoft CTO Nathan Myhrvold, through Intellectual Ventures, is also on the cap table. Sam Altman backed the small modular reactor startup Oklo before it merged with a special-purpose acquisition company.

But Microsoft’s deal with Constellation suggests that the company is hedging its bets. The company’s rapid data center growth may have forced it to secure power more quickly than it had anticipated. It’s also possible that the company realized the current wave of nuclear startups won’t be generating electricity anytime soon.

The latter isn’t surprising. Nuclear reactors aren’t exactly simple, and many startups are still relatively young, having produced only plans or concepts of plans.

But even more mature startups have stumbled. Two years ago, the Nuclear Regulatory Commission denied Oklo’s application to build a reactor for the Department of Energy in Idaho, and last year the Air Force rescinded a $100 million cost-plus contract. Competitor NuScale Power, another fission startup that went SPAC, lost a big contract in 2023.

Even if nuclear fission startups are able to overcome their engineering and regulatory hurdles, they’ll still have to find somewhere to build them. That remains the biggest challenge, I’d argue. It’s no secret that nuclear has an image problem. How many of you cringed a bit when Microsoft announced it was reopening Three Mile Island, even if the reactor in question was operational as recently as 2019? And while the majority of Americans now support nuclear power, the technology lags in acceptance to wind and solar. Plus, that support may vanish once concrete plans emerge. People might like nuclear in the abstract, but what about in their backyards?

Meanwhile, the cost of renewable power has grown increasingly attractive, even when adding the cost of batteries to enable 24/7 operation. 

In the near term, restarting old nuclear power plants will help tech companies keep up with growing power demand while minimizing its climate impact. But there are only so many mothballed nuclear power plants waiting for a savior. Eventually, cloud computing and AI companies will need alternative sources. The time to start looking for them is now.

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The fax machine is the bottleneck in US healthcare, and VCs are starting to notice

Like many AI companies automating work that humans currently do, Basata will eventually face a harder question about where the line is between augmenting workers and displacing them. For now, the founders say the administrative staff they work with aren’t worried about that; they’re more worried about drowning.
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US defense contractor who sold hacking tools to Russian broker ordered to pay $10M to former employers

Peter Williams, a veteran cybersecurity executive who was the head of the hacking and surveillance tech division of U.S. defense contractor L3Harris, has been ordered to pay $10 million to his former employer. Williams was the central figure in one of the worst leaks of advanced hacking tools in the history of the United States and its closest allies.

On Wednesday, a judge ordered Williams to pay that amount in restitution on top of the $1.3 million he had already been ordered to pay to L3Harris. Williams, a 39-year-old Australian citizen who previously worked in one of Australia’s intelligence agencies, was until last year the general manager of Trenchant. Born out of the acquisition of two sister startups, Trenchant is L3Harris’ division that develops advanced spyware and hacking tools and sells them to the U.S. government and its allies in the Five Eyes intelligence alliance, a coalition of five English-speaking nations that share classified intelligence with one another. In addition to the U.S., the alliance includes Australia, Canada, New Zealand, and the United Kingdom.

Veteran cybersecurity reporter Kim Zetter first reported the new order to pay restitution in her newsletter. 

Williams’ lawyers did not respond to a request for comment.

Last year, Williams was arrested and accused of stealing seven unspecified trade secrets — almost certainly cyber exploits, which is code that hijacks software vulnerabilities, and surveillance technology — from Trenchant and then selling them to Operation Zero. The Russian firm acts as a broker, buying and selling hacking tools, and it says it works exclusively with the Russian government and local companies.

Williams pleaded guilty and was sentenced to more than seven years in prison. 

Williams made $1.3 million selling the trade secrets, which he used to buy luxury watches, a house near Washington, D.C., and family vacations. Trenchant told prosecutors that it suffered losses of up to $35 million due to Williams’ theft. 

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U.S. prosecutors said Williams “betrayed” the United States and its allies by giving Operation Zero, which the U.S. government calls “one of the world’s most nefarious exploit brokers,” tools that could have been used to hack “millions of computers and devices around the world.” 

As TechCrunch previously reported, Williams took advantage of his privileged “full access” to Trenchant’s internal network to siphon the tools out of the company’s offices. After Williams sold the hacking tools to Operation Zero, some of them ended up being used by Russian government spies in Ukraine, and later Chinese cybercriminals, according to former L3Harris employees who recognized the stolen code in cybersecurity research that Google published after investigating the cyberattacks in which those tools were deployed.

Williams also tried to frame one of his employees for the theft.

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Poland says hackers breached water treatment plants, and the US is facing the same threat

Poland’s intelligence service said it detected attacks on five water treatment plants where hackers could have taken control of the industrial equipment inside, including, in the worst case, tampering with the safety of the water supply.

The story is relevant beyond Poland’s borders: U.S. water infrastructure has faced similar threats in recent years. In 2021, a hacker briefly gained access to a water treatment plant in Oldsmar, Florida and attempted to increase the level of sodium hydroxide — a caustic chemical — to dangerous levels. The FBI and the U.S. Cybersecurity and Infrastructure Security Agency have since warned that water utilities remain a soft target for foreign hackers.

On Friday, Poland’s Internal Security Agency, the country’s top intelligence agency, published a report covering the last two years of the agency’s operations and threats the country faced. The report said Polish intelligence thwarted multiple acts of sabotage from Russian government spies and hackers, who targeted military facilities, critical infrastructure (essential systems such as power grids, water supplies, and transportation networks), as well as civilian targets. These attacks, according to the report, may have resulted in fatalities.  

“The most serious challenge remains the sabotage activity against Poland, inspired and organized by Russian intelligence services. This threat was (and is) real and immediate. It requires full mobilization,” read the report.

The report did not specify whether the hackers behind the attacks on the water treatment facilities were Russian government spies. But Poland has recently been the target of several attempts by Russian government hackers to attack its infrastructure, including a failed attempt to bring down the country’s energy grid. That breach was later attributed to poor security controls at the targeted facilities.

Poland’s experience is part of a growing global pattern of attacks on water and energy infrastructure. As recently as last month, a joint advisory from the Cybersecurity and Infrastructure Security Agency, the FBI, the NSA, and several other federal agencies warned that Iranian-backed hackers are actively targeting programmable logic controllers — the industrial computers that run water and energy facilities — at U.S. utilities. The same Iranian hacking group, CyberAv3ngers, previously broke into digital control panels at multiple U.S. water treatment plants in Pennsylvania in 2023, in attacks that federal agencies linked to escalating hostilities in the Middle East.

In other words, the attacks against Poland are not unique, they follow a strategy that the Russian government is applying both in war zones such as Ukraine, as well as against Western countries that it sees as longstanding enemies. The plan, according to Polish intelligence, is to destabilize and weaken the West, and cyberattacks and cyberespionage are just tools in a larger toolkit for Putin’s regime.

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