Small Modular Reactors (SMRs) & Advanced Nuclear Energy

What's Happening

The convergence of AI's insatiable power demands, climate targets requiring zero-carbon baseload energy, and decades of nuclear technology advancement has created a renaissance in nuclear energy — specifically Small Modular Reactors (SMRs). Unlike traditional nuclear plants that cost $10-20 billion and take 10-15 years to build, SMRs are designed to be factory-built, transported by truck, and deployed in 3-5 years at a fraction of the cost. They generate 50-300 MW each (compared to 1,000+ MW for conventional reactors) and can be sited closer to demand centers, including AI data centers. The market driver is unprecedented: the world needs to double its electricity generation capacity by 2050 to meet climate goals, and AI data centers are adding massive new demand — Microsoft, Google, Amazon, and Meta are collectively planning data centers that will require tens of gigawatts of new clean power. Microsoft signed a historic deal with Constellation Energy to restart the Three Mile Island nuclear plant specifically to power AI data centers, and Google signed the first corporate power purchase agreement for SMR electricity from Kairos Power. Amazon invested $500 million in X-energy, an SMR developer. The global SMR market is projected to reach $10-20 billion by 2030 and potentially $150+ billion by 2040 as designs gain regulatory approval and reach commercial deployment. NuScale Power received the first-ever SMR design certification from the US Nuclear Regulatory Commission (NRC). Kairos Power, X-energy, TerraPower (backed by Bill Gates), and Rolls-Royce SMR are leading the development race. The technology comes in multiple flavors: light-water SMRs, molten salt reactors, high-temperature gas reactors, and microreactors. While the nuclear plants themselves are capital-intensive, there is a vast software and services ecosystem emerging around them — from regulatory compliance tools to supply chain management, workforce training, safety monitoring, and grid integration platforms.

Interest Over Time

Market Size