Powering the Shift to Clean Energy and the Artificial Intelligence Revolution Through Nuclear Power
Small Modular Reactors (SMRs) are poised for significant growth in the nuclear energy sector, with the U.S. Department of Energy (DOE) fast-tracking 10 companies to build and operate test reactors by mid-2026, aiming for commercial rollout within the next decade 1.
Scalable, Zero-Carbon, and Reliable Baseload Power
SMRs offer a promising solution to meet the surging electricity demands of emerging technologies like artificial intelligence (AI). With AI-driven data centers expected to nearly double their electricity consumption by 2030 to about 945 terawatt-hours annually 2, there is an urgent need for low-carbon, high-density power sources. SMRs, such as NuScale's 77 MWe modules, provide a modular and rapid deployment potential that fits these needs well 2.
Tech Industry Leaders Embrace SMRs
Tech industry leaders, including Microsoft, Amazon, Google, and OpenAI, are actively investing alongside governments (with over $1.6 billion committed) and urging regulatory streamlining. Their on-site deployment reduces transmission losses and allows capacity to scale with data center expansion 2.
Government Support and Regulatory Innovation
The U.S. nuclear sector is bolstered by renewed government policy support under the 2025 executive orders targeting quadrupling nuclear capacity by 2050. Key regulatory pathways like design certification, early site permits, and combined construction and operating licenses are also improving prospects for SMR commercial adoption 1.
However, despite fast-tracking, deployment hurdles such as construction, licensing, and financing remain substantial challenges. Experts caution about achieving all DOE goals on schedule 1.
Advancements in Fuel Technology and Design
Several companies are making strides in fuel technology and design. Lightbridge will soon begin testing its enriched uranium-zirconium alloy fuel at Idaho National Laboratory. X-Energy's flagship Xe-100 SMR uses proprietary TRISO-X fuel, designed with multiple layers of ceramic materials that cannot melt, even at extremely high temperatures 1.
NuScale Power's approved US460 SMR has passive safety features that use natural forces like gravity and convection for automatic shutdown and cooling. Kairos Power is making headway with its advanced modular reactor design, which combines TRISO fuel with a molten salt cooling system 1.
BWX Technologies successfully tested a new furnace for additively manufacturing TRISO fuel, a key milestone in the company's efforts to build an entirely new industrial supply chain 1.
Expanding HALEU Production and Waste Disposal Innovations
The DOE is leading efforts to expand High-Assay Low-Enriched Uranium (HALEU) production, releasing plans to downblend highly enriched uranium at the Savannah River site into HALEU 1.
Deep Isolation, a waste disposal innovator, recently closed a reverse merger and an oversubscribed $33 million private placement financing 1.
Notable Projects and Partnerships
Shine Technologies' fuel recycling venture with Standard Nuclear signals a market for firms focused on recycling spent nuclear fuel to extract more energy 1.
Oklo has secured a contract with the US Air Force to pilot a microreactor at Eielson Air Force Base in Alaska 1.
BWX Technologies has begun fabricating the reactor core for the 1.5 megawatt Pele demonstration microreactor for the US Department of Defense 1.
The DOE's Milestone-Based Fusion Development Program was authorized in 2020 and officially launched in September 2022 1.
The High Burnup Experiments in Reactivity-Initiated Accident project completed its first test, aimed at understanding light water reactor fuel performance under extreme conditions 1.
Global Laser Enrichment has advanced its separate laser-based enrichment project by completing both its full license application and a safety analysis report for US Nuclear Regulatory Commission review 1.
The DOE extended its $110 million contract with Centrus Energy for HALEU production and launched its Fuel Line Pilot Program to fast track nuclear fuel fabrication for new test reactors in July 1.
The DOE signed a lease with General Matter for a new uranium enrichment facility at the decommissioned Paducah gaseous diffusion plant 1.
Arc Energy's sodium-cooled fast reactor is designed to be remote, able to operate for over two decades without refueling 1.
In summary, SMRs are emerging as a pivotal technology to reconcile rising AI-driven energy demand with carbon reduction goals, offering an inherently safe, modular, and economically competitive nuclear option globally. Their rise is supported by strong government backing, industry investment, and regulatory innovation but full-scale commercialization and widespread adoption will unfold progressively throughout the 2030s and beyond 14.
The Nuclear Waste Technical Review Board will convene on August 27 to review information on the DOE's activities to manage spent nuclear fuel and high-level radioactive waste 1.
- Tech industry leaders are not just committing funds towards the development of Small Modular Reactors (SMRs), but also advocating for regulatory streamlining, recognizing the potential of these technologies to meet the growing energy demands of emerging technologies like AI and allow capacity to scale with data center expansion.
- With AI-driven data centers expected to nearly double their electricity consumption by 2030, Small Modular Reactors (SMRs) are a promising solution for providing low-carbon, high-density power, especially given their modular and rapid deployment potential. Such reactors, like NuScale's 77 MWe modules, offer a solution that fits these needs well.
