Nuclear Power Renaissance: SMRs and Data Center Power

Small modular nuclear reactors (SMRs) are emerging as a potential solution for the data center industry's voracious power demands, with several major technology companies signing agreements for nuclear power procurement. The convergence of AI-driven data center load growth and advanced nuclear technology is creating a new market dynamic that could reshape both industries.

Microsoft signed a landmark agreement to purchase power from Constellation Energy's Three Mile Island Unit 1 restart, securing 835 MW of carbon-free power for its data center operations. Google followed with a first-of-its-kind agreement to purchase power from Kairos Power's advanced reactor technology. Amazon has invested in small modular reactor developer X-energy.

The appeal of nuclear power for data centers is clear: it provides carbon-free, baseload power with capacity factors exceeding 90%, making it ideal for facilities that operate 24/7/365. Unlike solar and wind, nuclear does not require storage to provide firm power, simplifying the power procurement stack for data center operators.

NuScale Power's VOYGR small modular reactor design, the first SMR to receive Nuclear Regulatory Commission approval, produces 77 MW per module and can be scaled to 924 MW with multiple modules. The modular design allows capacity to grow with data center demand, matching the phased development approach common in the industry.

For communities and landowners near potential SMR sites, the development brings both opportunities and considerations. SMR facilities require 30-50 acres — much less than the 500+ acres needed for traditional nuclear plants — and generate significant tax revenue, jobs, and economic activity. However, public acceptance of nuclear technology remains a challenge that requires extensive community engagement and education.