The future may run on silicon, but it will depend on electricity. As artificial intelligence advances, so does its demand for power. Training a single large language model can consume as much electricity as a small town uses in a year. Multiply that across all the tech firms, cloud providers, and defense agencies trying to stay ahead, and the scale of demand becomes staggering.
In Israel, a country already struggling to meet peak electricity needs during hot summers, this AI-driven surge could strain the grid long before it boosts the economy. But this is not only a matter of capacity. It is a matter of energy security. Relying too heavily on one source, such as natural gas, leaves Israel vulnerable to price volatility, supply disruptions, and geopolitical instability.
The option of civilian nuclear energy
This brings a long-avoided option back into focus: civilian nuclear energy. While often dismissed in Israel due to safety concerns, nuclear power may be one of the few viable ways to meet growing demand while ensuring low emissions and reliable supply.
Crucially, the new generation of nuclear technology looks nothing like the old. Small modular reactors, or SMRs, are compact, factory-built, and designed with advanced safety features. They may offer a practical way forward.
Consider the numbers. The Israel Electricity Authority projects a 4% annual growth in electricity demand throughout this decade. That figure does not account for the expected load from data centers, semiconductor fabrication plants, or defense-related AI systems. Intel’s upcoming chip facility alone could require as much as 400 megawatts, equivalent to the consumption of an entire city.
Unlike solar, nuclear energy operates around the clock. Unlike natural gas, it is not tied to the volatility of global commodity markets. SMRs being developed in the United States, Canada, and South Korea offer stable, scalable, and low-emission baseload power. They can be installed underground, cooled without relying on rivers or the sea, and located near industrial centers and data centers. This reduces transmission losses and minimizes exposure to threats.
Decentralized power generation could become a pillar of national resilience. Data centers, defense installations, and other critical infrastructure would benefit from consistent local power, even in the event of large-scale grid failures.
It's time to overcome the obstacles
There are political and legal hurdles, of course. Israeli law currently prohibits civilian nuclear generation. The legacy of Dimona and concerns over regional nuclear proliferation still loom large.
Yet the strategic context is changing. Saudi Arabia is pursuing civilian nuclear technology with American backing. The United Arab Emirates has already launched its own reactors.
Israel, one of the world’s most technologically advanced economies, risks falling behind if it continues to ignore this option. SMRs also offer value beyond electricity. They provide resilience against cyberattacks, sabotage, and protracted regional crises.
As AI systems and data infrastructure become increasingly strategic, so too does the energy that powers them.
This is not a call for reckless expansion. But it is time to begin a serious national conversation. Just as AI is reshaping our industries, borders, and capabilities, it must also shape how we think about energy.
For Israel to remain secure, competitive, and technologically relevant in the coming era, it must explore all available options – including nuclear power.
Dr. Asaf Tzachor is the founder and academic director of the Yannay Institute for Energy Security at Reichman University. Avri Schechter is the director of the institute.