The insatiable power demands of artificial intelligence have data center operators searching for reliable, carbon-free energy solutions. This quest has ignited renewed interest in nuclear power—specifically Small Modular Reactors (SMRs) that promise to deliver clean, consistent energy at a scale suitable for tech facilities.
Last week, NuScale Power made waves by signing a memorandum of understanding with Standard Power, a major data center infrastructure provider. The agreement outlines plans to deploy NuScale’s innovative SMR technology at upcoming data center locations, potentially transforming how tech facilities source their energy.
“This partnership represents a pivotal moment for both the nuclear and technology industries,” said John Hopkins, NuScale’s CEO. “Our SMRs offer the reliability and carbon-free profile that modern computing infrastructure desperately needs.”
The timing couldn’t be more critical. AI workloads are pushing power requirements to unprecedented levels, with some facilities now requiring upwards of 100 megawatts—enough to power roughly 75,000 homes. Traditional electrical grids simply weren’t designed for this concentrated demand.
NuScale’s approach centers on their VOYGR power plants, which feature compact 77-megawatt modules that can be factory-built and transported to sites, dramatically reducing construction complexity and timeframes. Unlike conventional nuclear plants that can take a decade or more to build, these SMRs aim for deployment in 3-4 years.
Standard Power isn’t the only tech infrastructure company exploring nuclear options. Amazon Web Services recently announced they’re investigating SMRs for their data centers, while Microsoft signed a power purchase agreement with Constellation Energy that includes nuclear in the mix.
What makes this trend particularly noteworthy is the alignment of nuclear power’s strengths with data centers’ specific needs. Data facilities require “baseload” power—consistent electricity available 24/7 regardless of weather conditions. This is precisely what nuclear excels at providing.
“The data center industry faces dual pressures: maintaining absolute reliability while meeting increasingly stringent environmental commitments,” explains Sarah Jenkins, energy analyst at MIT Technology Review. “SMRs potentially solve both problems simultaneously.”
Critics point to the historical challenges of nuclear projects, including cost overruns and regulatory hurdles. Indeed, NuScale has faced setbacks, including the cancellation of their UAMPS project in Utah last year due to rising costs and subscription challenges.
However, industry experts suggest data centers represent a more promising market. Unlike utilities that must navigate complex regulatory environments and public service obligations, tech companies can make independent decisions based on business needs.
For perspective, Google alone consumed 18.3 terawatt-hours of electricity in 2021—more than many small countries. With AI accelerating these demands, traditional renewable sources like wind and solar face fundamental limitations due to their intermittency.
The economics also appear increasingly favorable. Recent research from the Energy Information Administration suggests that when factoring in reliability and lifetime operation, SMRs could deliver electricity at costs competitive with natural gas plants in many scenarios.
Environmental considerations add another dimension. While building a nuclear plant involves significant carbon emissions, the operational phase produces virtually no greenhouse gases. Over a facility’s 60+ year lifespan, this results in one of the lowest carbon footprints per kilowatt-hour of any energy source.
“We’re seeing a remarkable convergence of needs between next-generation computing and next-generation energy,” notes David Thompson of Epochedge Technology Research. “Both industries are pushing boundaries of what’s possible, and both need each other to advance.”
NuScale has positioned itself at the forefront of this convergence. Their SMR design received the first-ever U.S. Nuclear Regulatory Commission certification for a small modular reactor in January 2023, providing crucial regulatory clarity for potential customers.
The road ahead still contains challenges. Securing financing, navigating permits, and addressing public perceptions around nuclear energy remain significant hurdles. Additionally, the first commercial deployments will need to demonstrate that the promised benefits materialize in practice.
Nevertheless, the entry of data center operators into the nuclear conversation signals a significant shift. These companies bring substantial capital, technical expertise, and a pressing need that could accelerate SMR development.
As AI continues reshaping our digital landscape, the energy infrastructure supporting it appears headed for equally transformative change. The marriage between nuclear innovation and computing power may just be getting started, with implications extending far beyond server racks and cooling systems.
For an industry that thrives on reliability measured in “nines” (99.999% uptime), nuclear’s consistent output offers a compelling proposition. Whether this translates into widespread adoption remains to be seen, but NuScale’s latest partnership suggests the technological momentum is building.
