NuScale’s SMRs Could Help Meet AI’s Surging Power Needs, But Commercial Hurdles Remain
NuScale’s SMRs Could Help Meet AI’s Surging Power Needs, But Commercial Hurdles Remain
NuScale Power is gaining fresh attention as artificial intelligence data centers create a fast-growing need for reliable, around-the-clock electricity. The company’s small modular reactors, or SMRs, are being viewed as a possible long-term answer for hyperscale data centers that need clean power without interruptions.
Why AI Is Creating a New Energy Challenge
AI data centers use huge amounts of electricity because they run powerful chips, cooling systems, storage equipment, and networking hardware all day and night. The International Energy Agency says global data center electricity use could roughly double by 2030, reaching about 945 terawatt-hours in its base case.
This rising demand is putting pressure on power grids. Tech companies want energy that is reliable, scalable, and lower in carbon emissions. That is why nuclear power, especially SMRs, is becoming part of the conversation.
What Makes NuScale’s SMR Technology Important
NuScale’s key advantage is regulatory progress. In May 2025, the U.S. Nuclear Regulatory Commission completed its review of NuScale’s US460 standard design, which uses six 77-megawatt electric modules for a total of 462 megawatts.
The U.S. Department of Energy also said NuScale’s uprated 77-MWe reactor design became the second SMR design approved by the NRC. This matters because nuclear projects require strict safety reviews before they can move toward construction.
Why Data Centers May Like Behind-the-Meter SMRs
One major idea is placing SMRs near large energy users, sometimes called a behind-the-meter model. Instead of relying fully on the public grid, a data center could receive dedicated power from nearby reactors. This could reduce grid congestion and improve energy certainty.
For AI companies, certainty is valuable. A delay in electricity access can delay new data center capacity. Since AI workloads are expanding quickly, companies are looking for power sources that can support long-term growth.
The Bull Case for NuScale
Supporters believe NuScale is well positioned because its technology has already passed important U.S. regulatory milestones. Its modular design could allow customers to build capacity in stages instead of committing to one massive traditional nuclear plant.
SMRs may also appeal to customers that want low-carbon baseload power. Solar and wind are growing quickly, but they depend on weather and often need storage. Nuclear plants can provide steady electricity, making them useful for facilities that cannot easily pause operations.
The Main Risks Investors Should Watch
NuScale still faces major challenges. SMRs are promising, but commercial deployment in the United States remains limited. Projects must secure customers, financing, construction partners, permits, fuel supply, and long-term operating plans.
Cost is another concern. Reuters has reported that critics argue SMRs may be more expensive to operate than large conventional reactors and still face nuclear waste issues. Earlier nuclear projects have also shown that delays and rising costs can hurt investor confidence.
AI Demand Could Be a Tailwind, Not a Guarantee
The AI power boom gives NuScale a strong market story, but demand alone does not guarantee success. Tech companies may use a mix of energy sources, including natural gas, renewables, batteries, existing nuclear plants, geothermal power, and grid upgrades.
Reuters has also noted that SMRs face hurdles such as safety concerns, waste management, financing uncertainty, and regulatory delays, even as technology companies explore nuclear power for future data center demand.
What This Means for NuScale Power Stock
For investors, NuScale represents a high-potential but high-risk energy technology story. The company may benefit if hyperscale data center operators commit to SMR-based power projects. However, the stock could remain volatile because revenue timing, project approvals, and construction milestones are still uncertain.
The key question is not only whether SMRs can help solve AI’s power problem. The bigger question is whether NuScale can turn regulatory progress and market interest into signed contracts, funded projects, and operating plants.
Conclusion
NuScale’s SMRs could play an important role in powering the AI era, especially for data centers that need clean, constant, and large-scale electricity. The company’s NRC-approved 77-MWe design gives it credibility in a difficult industry.
Still, the road ahead is not easy. NuScale must prove that its technology can be financed, built, and operated at commercial scale. AI demand may open the door, but execution will decide whether NuScale becomes a major winner in the next phase of clean energy infrastructure.
External reference: U.S. Department of Energy report on NuScale’s NRC approval
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