NuScale Power and the AI Energy Revolution: A Strategic Pathway to Reshape Global Power Dynamics

The rise of artificial intelligence (AI) is no longer a speculative narrative—it is an energy crisis in the making. By 2030, data centers alone will consume nearly 1,000 terawatt-hours (TWh) of electricity annually, a figure rivaling Japan's total current energy use. This surge, driven by AI training and inference workloads, demands a reimagining of power generation. In this context, small modular reactors (SMRs) are emerging as a disruptive force. Among them, NuScale Power (NUS) stands out as a pioneer, uniquely positioned to address the scalability, reliability, and sustainability challenges of AI-era energy needs.

The AI-Driven Energy Bottleneck

AI's insatiable appetite for computational power has created a paradox. While AI promises efficiency gains across industries, its own operations are energy-intensive. Data centers now account for 2% of global electricity consumption, and this is projected to double by 2030. Traditional energy sources—fossil fuels, even renewables—struggle to meet these demands due to intermittency, transmission losses, and environmental constraints. For instance, solar and wind require vast land areas and energy storage to ensure 24/7 uptime, a costly proposition for hyperscalers. Meanwhile, grid infrastructure in many regions is ill-equipped to handle the rapid load fluctuations AI imposes.

NuScale's SMR: A Precision-Engineered Solution

NuScale Power's SMR technology, the NuScale Power Module™ (NPM), is designed to dismantle these barriers. Each module generates 77 megawatts (MW) of electricity with a capacity factor exceeding 95%, outperforming most renewables and traditional nuclear reactors. Its modular architecture allows for scalable deployment, with plants configurable from 308 MW to 924 MW by combining 4–12 modules. This flexibility is critical for AI data centers, which require incremental power additions as demand grows.

What sets NuScale apart is its operational resilience. The NPM can function as a standalone microgrid, ensuring uninterrupted power even during grid outages—a critical feature for mission-critical AI operations. Its “walk-away safe” design, which enables self-cooling without human intervention, further reduces risk. These attributes make NuScale an attractive partner for hyperscalers like Microsoft, which has pledged $80 billion in 2025 to transition its data centers to carbon-free energy.

Strategic Partnerships and Financial Resilience

NuScale's recent financials underscore its strategic positioning. As of Q1 2025, the company holds $521.4 million in cash and equivalents, bolstered by $102.4 million raised through its ATM program. While operating losses persist ($35.3 million in Q1), the reduction from $44.0 million in 2024 signals improving efficiency. Crucially, NuScale's partnerships with tech giants and energy innovators are accelerating its commercialization timeline. Collaborations with Microsoft, Alphabet, and Oracle are not just symbolic—they represent a $1-trillion market opportunity as hyperscalers seek to decarbonize.

The company's regulatory progress is equally compelling. Approval of its 77 MWe design by the U.S. Nuclear Regulatory Commission (NRC) by July 2025 will unlock a path to commercial deployment by 2030. This aligns with global demand for SMRs, which the International Energy Agency (IEA) estimates could supply 150 GW of new capacity by 2040.

Competitive Advantages in a Fragmented Market

NuScale's SMRs outperform alternatives in three key areas:
1. Scalability: Unlike conventional reactors, which require 10+ years to build, NuScale's factory-built modules can be deployed in 3–5 years.
2. Reliability: With 95% uptime, SMRs eliminate the intermittency of renewables and the operational risks of fossil fuels.
3. Dual-Use Potential: Beyond power, NuScale's modules can generate process heat for hydrogen production or desalination, creating revenue diversification.

Competition from startups like Oklo and Constellation Energy exists, but NuScale's regulatory head start and $2.2 billion in pre-orders give it a significant edge.

Investment Implications

For investors, NuScale represents a convergence of macro trends: the AI revolution, decarbonization mandates, and energy infrastructure modernization. While the stock remains speculative—its $521 million cash balance must fund R&D and regulatory costs—its strategic alignment with hyperscalers and governments positions it as a long-term winner.

A cautious entry point would involve dollar-cost averaging into NuScale, given its high beta and exposure to regulatory risks. However, for a 5–10 year horizon, the company's role in powering the AI economy justifies a premium valuation. Investors should also monitor its partnerships with financial institutions and infrastructure capital groups, which could unlock new funding avenues.

Conclusion

NuScale Power is not merely building reactors—it is architecting the energy infrastructure of the AI era. As data centers evolve into the new “factories” of the digital economy, SMRs will be their lifeblood. For investors seeking to capitalize on the intersection of AI and clean energy, NuScale offers a compelling thesis: a technology that is as scalable as the demand it serves and as resilient as the systems it powers.