As artificial intelligence systems continue to grow in complexity and scale, their energy demands have skyrocketed, creating unprecedented challenges for data center operators. Enter Small Modular Reactors (SMRs) – compact nuclear power plants that are emerging as the perfect solution for powering the AI revolution. With their unique combination of reliability, scalability, and zero-carbon operation, these innovative energy systems are poised to transform how tech companies power their most demanding computational workloads.

The SMR Revolution: Meeting AI's Insatiable Power Needs

The rapid expansion of AI capabilities has created a power dilemma for tech companies. According to the Nuclear Business Platform, data centers are expected to consume over 1,000 TWh of electricity by 2026, with AI applications driving much of this growth. Traditional energy sources struggle to meet these demands, especially when considering the need for 24/7 reliability and carbon reduction goals.

Small Modular Reactors offer a compelling solution. These advanced nuclear facilities can be manufactured in factories and deployed where needed, providing constant, carbon-free electricity to power even the most demanding AI operations. While traditional nuclear plants typically generate 1,000+ megawatts of electricity, SMRs produce between 10 to 300 megawatts, making them ideal for dedicated data center applications.

The tech industry has taken notice, with venture capital pouring into the sector. Business Insider reports that just four SMR companies have received over $3 billion in VC funding, highlighting the growing recognition of nuclear power's crucial role in enabling AI advancement.

Leading SMR Designs Transforming the Energy Landscape

Several innovative SMR designs are at the forefront of this energy revolution, each with unique features suited to different applications:

NuScale Power Module

NuScale's design was the first SMR to receive U.S. Nuclear Regulatory Commission design approval, marking a significant milestone for the industry. Each NuScale Power Module generates 77 megawatts of electricity and can be deployed in configurations of 4, 6, or 12 modules, creating flexible power plants that match different needs.

The company has already signed notable agreements with data center providers. In October 2023, NuScale announced a partnership with Standard Power to develop two SMR-powered facilities specifically for data center operations. Despite facing financial challenges (the company reported a $180 million loss in 2023), NuScale continues to advance its technology and market position.

NuScale's design emphasizes passive safety, utilizing natural circulation for cooling rather than pumps or other active systems that could fail. This approach not only enhances safety but also simplifies operations and reduces maintenance requirements – critical factors for reliable data center power.

GE Hitachi BWRX-300

The BWRX-300 represents one of the most commercially advanced SMR designs, with multiple deployment agreements already in place. This 300-megawatt boiling water reactor builds on GE Hitachi's extensive nuclear experience while incorporating modern safety features and simplified design elements.

According to GE Hitachi, the BWRX-300 can achieve an electricity cost of approximately $60/MWh – comparable to many renewable energy sources and significantly less expensive than earlier nuclear designs. This economic competitiveness makes it particularly attractive for tech companies seeking to control operational costs while maintaining reliable power for AI operations.

The design has gained significant international traction, with agreements in place across North America and Europe. Saskatchewan Power Corporation, Ontario Power Generation, and Synthos Green Energy in Poland have all selected the BWRX-300 for deployment, demonstrating broad market confidence in the technology.

X-energy Xe-100

X-energy's Xe-100 represents a different approach to SMR technology, utilizing a high-temperature gas-cooled reactor design. Each Xe-100 unit generates approximately 80 megawatts of electricity, and the company typically proposes deploying them in four-packs to create 320-megawatt power plants.

What makes the Xe-100 particularly interesting for data center applications is its high operating temperature – exceeding 750 degrees Celsius. This thermal output could potentially be used not just for electricity generation but also for direct cooling applications in data centers, potentially improving overall system efficiency.

In a significant development for AI infrastructure, Curtiss-Wright recently announced that Amazon has partnered with X-energy to support deployment of the Xe-100 reactor technology. This partnership highlights the growing interest from major tech companies in securing dedicated nuclear power for their expanding AI operations.

Oklo Aurora

Perhaps the most innovative approach comes from Oklo, whose Aurora "microreactor" design produces just 1.5 megawatts of electricity – making it the smallest commercial nuclear design in development. Despite its modest size, the Aurora represents a potentially transformative approach for powering smaller, distributed AI computing nodes.

Oklo has attracted significant attention through its connection to OpenAI CEO Sam Altman, who serves as chairman of Oklo's board. The company went public in May 2024 through a special purpose acquisition company (SPAC) called AltC Acquisition Corp., founded and led by Altman himself.

Though Oklo's stock initially faced challenges, dropping 54% on its first day of NYSE trading, the company has made significant progress with its technology. In September 2024, Oklo received approval from the Department of Energy to begin site investigations for its planned microreactor in Idaho Falls, Idaho – making it the only advanced fission company with a DOE site use permit.

In December 2024, Oklo signed a major agreement with data center company Switch to provide clean nuclear energy for its operations. This deal represents one of the first commercial contracts specifically linking microreactor technology with data center operations.

Tech Giants' Nuclear Ambitions Accelerate

The relationship between tech companies and SMR developers has evolved rapidly, with several landmark developments in recent months:

Oracle made headlines in September 2024 when it announced plans to construct a gigawatt-scale data center powered by three small modular reactors. According to Data Center Frontier, Oracle founder and CTO Larry Ellison revealed that building permits for these reactors have already been secured, suggesting a serious commitment to nuclear-powered AI infrastructure.

Microsoft demonstrated its confidence in nuclear power by committing $1.6 billion to restore the Three Mile Island nuclear plant, aiming to secure 835 megawatts of carbon-free electricity for its AI operations starting in 2028. While not an SMR, this investment signals Microsoft's broader strategy of securing reliable nuclear power for its growing AI compute needs.

Amazon, Google, Meta, and other tech giants have also announced nuclear partnerships or initiatives, marking a profound shift in the industry's approach to power infrastructure. IEEE Spectrum reports that these companies "aim to secure reliable, carbon-free electricity" through investments in next-generation nuclear and small modular reactors, recognizing that traditional power sources may not be sufficient for their future AI ambitions.

Advantages for AI Infrastructure

SMRs offer several distinct advantages that make them particularly well-suited for powering AI infrastructure:

Unmatched Reliability

AI operations require constant, uninterrupted power with extremely high reliability standards. Nuclear power plants routinely achieve capacity factors exceeding 90%, meaning they operate at full power more than 90% of the time – far higher than alternative energy sources. For data centers running critical AI workloads, this reliability is invaluable.

Perfect Load Matching

AI training operations often require consistent power delivery over extended periods – sometimes weeks or months for training large models. SMRs deliver steady baseload power that matches this usage profile perfectly, eliminating the intermittency challenges associated with renewable energy sources.

Compact Footprint

Modern data centers can consume as much electricity as small cities, but SMRs require relatively little land compared to other clean energy alternatives. A typical SMR facility uses just 5-10% of the land area needed for solar or wind farms producing equivalent electricity, making them ideal for deployment near data centers without excessive transmission infrastructure.

Carbon-Free Operation

Tech companies have made ambitious climate commitments, and nuclear power helps them meet these goals. SMRs produce zero direct carbon emissions during operation, with lifecycle emissions comparable to wind and solar when considering manufacturing and construction impacts.

Scalable Deployment

The modular nature of SMRs allows for incremental capacity additions that align well with the phased expansion typical of data center campuses. Rather than building excess capacity upfront, companies can add power modules as their computing needs grow.

Challenges and Considerations

Despite their promise, SMRs face several important challenges before they can fully realize their potential for powering AI infrastructure:

Regulatory Timelines

While regulatory processes for SMRs have improved, they still operate on timeframes measured in years rather than months. This creates a mismatch with the rapid deployment cycles typical in the tech industry, though recent policy reforms are helping to address this gap.

Specialized Fuel Requirements

Many advanced SMR designs require High-Assay Low-Enriched Uranium (HALEU) with enrichment levels up to 20%, compared to 3-5% for conventional reactors. The supply chain for this fuel is still developing, creating potential bottlenecks for widespread deployment.

Initial Capital Costs

Though SMRs offer competitive electricity costs over their operational lifetime, they still require significant upfront investment. This capital-intensive model differs from the operational expense approach preferred by many tech companies, though innovative financing models are emerging to address this challenge.

Public Perception

Nuclear energy continues to face perception challenges despite its safety record. Tech companies must navigate these concerns carefully when proposing nuclear-powered data centers, though recent polling shows increasing public support for nuclear energy, particularly when framed as a climate solution.

The Path Forward: Integration and Innovation

The integration of SMRs with AI infrastructure represents not just a technological partnership but a fundamental reimagining of how we power the digital economy. As this relationship evolves, several trends are emerging:

Co-located Infrastructure

Rather than relying on grid-supplied electricity, future AI facilities may be directly co-located with SMR installations, minimizing transmission losses and improving overall system efficiency. These integrated facilities could represent a new paradigm for critical digital infrastructure.

Thermal Integration

Beyond electricity, SMRs produce substantial thermal energy that could be directly utilized for data center cooling. This integrated approach could significantly improve overall energy efficiency compared to conventional setups that waste heat from electricity generation.

Dedicated Power Purchase Agreements

Long-term agreements between tech companies and SMR developers provide the financial certainty needed for nuclear projects while securing stable, predictable energy costs for AI operations. These partnerships benefit both sectors while accelerating the deployment of clean energy.

Regulatory Evolution

Policymakers are increasingly recognizing the importance of SMRs for both energy security and digital infrastructure. The International Atomic Energy Agency's 2024 publication "Small Modular Reactors: Advances in SMR Developments" documents significant progress in regulatory frameworks worldwide, creating more efficient pathways for licensing and deployment.

Looking Ahead: The 2030 Landscape

By 2030, the relationship between SMRs and AI infrastructure will likely have advanced significantly. Early commercial SMR deployments will be operational, providing valuable operational data and experience. Tech companies will have refined their approaches to integrating nuclear power with computing facilities, developing best practices that optimize both safety and performance.

The Nuclear Business Platform identifies 2025 as a "transformative period for the nuclear energy sector," driven by technological advancements, regulatory reforms, and international collaborations. This transformation will be particularly evident in the tech sector, where the enormous energy demands of AI systems are driving unprecedented innovation in power infrastructure.

Small Modular Reactors represent more than just a power source for AI – they embody a fundamental rethinking of our approach to critical infrastructure. By combining the reliability of nuclear energy with the computational capabilities of advanced AI, these technologies together may unlock solutions to some of society's most pressing challenges, from climate change to healthcare innovation.

As we navigate this transition, thoughtful integration of these powerful technologies will be essential to maximizing their benefits while addressing legitimate concerns. The convergence of SMRs and AI infrastructure represents one of the most promising technological partnerships of our time – one that could reshape not just how we power computing, but how we power society itself.