The AI-Nuclear Synergy: How SMR Expansion with X-energy and Amazon Could Reshape the Energy-Infrastructure Megatrend

The convergence of artificial intelligence (AI) and nuclear energy is no longer a speculative future—it is a strategic imperative. As global data center electricity demand surges, driven by AI's insatiable appetite for compute power, the U.S.-South Korea collaboration in Small Modular Reactor (SMR) development is emerging as a pivotal battleground for energy and technological dominance. At the heart of this partnership lies X-energy's Xe-100 reactor, a fourth-generation SMR designed to meet the 24/7, high-capacity needs of AI infrastructure. For early-stage investors, the strategic value of participating in this supply chain—anchored by Amazon's $5 GW investment and South Korean industrial giants like Korea Hydro & Nuclear Power (KHNP) and Doosan Enerbility—could redefine the energy-technology landscape by 2035.

The Strategic Nexus: U.S.-South Korea SMR Supply Chain

The U.S.-South Korea SMR collaboration is more than a technological alliance; it is a geopolitical and economic masterstroke. By 2025, this partnership had mobilized $50 billion in public and private capital, with the Xe-100 SMR at its core. X-energy's reactor, paired with KHNP's reactor engineering expertise and Doosan's manufacturing prowess, is poised to disrupt traditional energy paradigms. Doosan Enerbility's role in securing global nuclear equipment supply chains ensures that the Xe-100's deployment is not just a U.S. endeavor but a scalable, cross-border infrastructure project.

This collaboration is underpinned by the $350 billion U.S.-South Korea trade deal, which positions SMRs as a cornerstone of energy security and AI growth. The Xe-100's recent Construction Permit Application acceptance by the U.S. Nuclear Regulatory Commission (NRC) marks a critical milestone, with the first commercial deployment expected by 2027. Amazon's co-development of a 320-MWe Xe-100 project in Washington state, alongside Energy Northwest, further underscores the urgency of aligning nuclear energy with AI's energy demands.

AI's Energy Appetite and the SMR Solution

The energy demands of AI infrastructure are staggering. By 2030, U.S. data centers could consume between 214 TWh and 675 TWh annually, a 2.6-fold increase from 2023 levels. Traditional energy sources—renewables and fossil fuels—struggle to meet this demand due to intermittency, transmission limitations, and carbon constraints. SMRs, however, offer a compelling alternative: high-capacity, low-emission, and grid-independent power.

X-energy's Xe-100, with its 320 MWe output and TRISO-X fuel technology, is uniquely suited to this challenge. Unlike gigawatt-scale reactors, SMRs can be co-located with data centers, eliminating transmission losses and enabling real-time energy management. Amazon's 5 GW SMR roadmap, which includes 12 Xe-100 units at the Energy Northwest site, exemplifies this strategy. Similarly, Google's 500 MW Kairos Power project and Meta's 4 GW nuclear RFP highlight the sector's shift toward nuclear as a foundational energy source.

ROI Realities and Strategic Risks

While the strategic case for SMRs is robust, investors must navigate complex ROI dynamics. Deloitte estimates that SMRs could meet 10% of the projected 2035 data center energy demand, but capital expenditures remain high—$6,417 to $12,681 per kilowatt in 2024. Regulatory delays, supply chain bottlenecks, and public perception risks further complicate deployment timelines. For instance, the NRC's permitting process for advanced reactors could take up to four years, pushing first commercial operations to 2030 at the earliest.

However, the ADVANCE Act of 2024 and DOE loan guarantees are mitigating these risks. The bipartisan legislation streamlines licensing, caps fees, and funds workforce development, while Amazon's $50 billion investment in Xe-100 projects provides a de facto subsidy for early adopters. Additionally, modular construction and digital twinning technologies are expected to reduce costs by 15–34% over the next decade.

Investment Implications: Early-Stage Opportunities

For investors, the U.S.-South Korea SMR supply chain offers a dual opportunity: participation in a high-growth energy sector and alignment with AI's infrastructure needs. Key players to consider include:
1. X-energy (XNRGY): The developer of the Xe-100, with Amazon as its largest backer. Its stock has shown volatility but reflects growing institutional interest.
2. KHNP and Doosan Enerbility: South Korean firms providing reactor design and manufacturing expertise. Their stock performance is tied to global nuclear demand and U.S. trade policies.
3. Amazon (AMZN): While not a nuclear developer, Amazon's SMR investments signal a long-term bet on energy security for its AI infrastructure.

The strategic value of early-stage participation lies in capturing the “first-mover” advantage in a sector poised for exponential growth. By 2035, SMRs could account for 35–62 GW of new U.S. nuclear capacity, with AI data centers consuming over 176 GW of electricity. Investors who align with this trajectory—through direct equity in SMR developers, supply chain partners, or AI-driven energy infrastructure—stand to benefit from both technological innovation and geopolitical positioning.

Conclusion: A New Energy-Infrastructure Paradigm

The AI-nuclear synergy is not merely a response to energy demand—it is a redefinition of how power is generated, distributed, and consumed. The U.S.-South Korea SMR partnership, anchored by X-energy and Amazon, is a blueprint for this future. While challenges remain, the alignment of policy, capital, and technological innovation creates a compelling case for early-stage investment. For those willing to navigate the complexities of nuclear energy and AI infrastructure, the rewards could be transformative.

As the world races to power the AI revolution, the reactors that fuel it may well determine the next era of global energy and technological leadership.