What Bill Gates, ASX uranium shares and the AI revolution have in common
Two IT professionals walk along a wall of mainframes in a data centre discussing various things
ASX uranium shares, Microsoft Corp (NASDAQ: MSFT) co-founder Bill Gates, and the AI revolution have an energetic thread connecting them.
As you may be aware, the rapid expansion of AI is also driving increased energy demand. The new technology requires the construction of more data centres, which in turn require significantly more electricity to drive the AI-enabled chips.
In a world intent on decarbonising its energy sources, this connects the AI revolution to ASX uranium shares like Paladin Energy Ltd (ASX: PDN), Bannerman Energy Ltd (ASX: BMN), Deep Yellow Limited (ASX: DYL), Boss Energy Ltd (ASX: BOE) and Alligator Energy Ltd (ASX: AGE).
Because data centres need reliable baseload power that can't always be delivered by solar or wind power, a growing number of operators are investigating the potential of nuclear energy to power the new centres when the sun's not shining, and the wind's gone flat.
Which brings us to Microsoft's Bill Gates.
ASX uranium shares count as 'allies'
Bill Gates has been investigating the potential of next generation nuclear reactors via his start-up company TerraPower since 2008.
And in potentially good news for ASX uranium shares, Gates told US broadcaster CBS that he's prepared to invest billions more dollars into the company's first commercial-scale reactor, located in Wyoming.
"I put in over a billion, and I'll put in billions more," Gates said about the project after construction commenced last week.
The new TerraPower nuclear plant was originally planned to start producing power in 2028. That's been pushed back to 2030 following the US ban on Russian uranium imports. The plant is now expected to come online in 2030.
With Russia's nuclear fuel "unacceptable now," Gates said TerraPower would source the radioactive metal domestically and from the nation's allies. Presumably that could include ASX uranium shares.
Exploding AI demand
In an interview with US-based National Public Radio (NPR), Gates addressed the strains that the "exploding AI demand" could put on the electric grid.
"The additional data centres that we'll be building look like they'll be as much as a 10% additional load for electricity," he said.
Gates added:
The US hasn't needed much new electricity, but with the rise in a variety of things from electric cars and buses to electric heat pumps to heating homes, demand for electricity is going to go up a lot.
And now these data centres are adding to that. So, the big tech companies are out looking at how they can help facilitate more power, so that these data centres can serve the exploding AI demand.
As for ASX uranium shares, Australia has the world's largest proven uranium reserves. Enough to sustainably power the AI revolution into the far-distant future.
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Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Microsoft. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool Australia has recommended Microsoft. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.