NuScale Power (SMR): Powering the AI Revolution with Small Modular Reactors

The artificial intelligence (AI) revolution is reshaping industries, economies, and global energy demand. As AI infrastructure surges—driven by large language models, generative AI, and cloud computing—the energy needs of data centers are outpacing traditional grid capacity. By 2030, AI-driven data centers are projected to consume more electricity than the entire U.S. manufacturing sector, with global demand reaching 945 terawatt-hours (TWh) annually. In this context, NuScale Power (NUSC), a pioneer in Small Modular Reactor (SMR) technology, is emerging as a critical enabler of the AI infrastructure boom.

The Energy Conundrum of AI Infrastructure

AI workloads are energy-intensive. Training a single large language model can consume as much electricity as 100 average U.S. households use in a year. The International Energy Agency (IEA) estimates that AI-related electricity demand will grow eightfold by 2030, far outpacing total grid demand. This surge is straining existing power grids, particularly in regions like Northern Virginia, where grid operators are delaying new data center permits due to capacity constraints.

Meanwhile, data centers are increasingly located in colder regions like the Pacific Northwest to leverage free cooling and reduce energy use. However, even these strategies cannot offset the exponential growth in AI's power requirements. The solution? A reliable, scalable, and low-carbon energy source: nuclear power.

NuScale's SMR: A Game-Changer for AI Infrastructure

NuScale Power's Small Modular Reactor (SMR) design offers a compelling answer to the AI energy dilemma. Each NuScale Power Module (NPM) generates 77 megawatts of electricity (MWe)—a capacity uprated from its original 50 MWe design in 2022. With a modular, factory-fabricated design, NuScale's SMRs can be deployed in clusters of up to 12 units, delivering 924 MWe of power per plant. This scalability aligns perfectly with the incremental expansion needs of data centers, which often require phased power solutions as AI workloads grow.

The NPM's passive safety systems—which rely on gravity and natural convection to cool reactors without external power or operator intervention—make it a resilient option for mission-critical applications. The U.S. Nuclear Regulatory Commission (NRC) has certified NuScale's design with a "Triple Crown for Nuclear Plant Safety™," a first in the industry.

Strategic Partnerships and AI-Ready Deployments

NuScale's 2025 momentum is anchored by strategic partnerships targeting AI infrastructure. The most notable is Standard Power, a provider of infrastructure-as-a-service for advanced data processing companies. Standard Power has announced plans to develop two SMR-powered facilities in Ohio and Pennsylvania, deploying 24 of NuScale's 77 MWe modules by 2029. These projects will generate 1,848 MWe of clean energy, directly addressing the power needs of AI-driven data centers.

The partnership leverages ENTRA1 Energy, NuScale's exclusive global commercialization partner, to manage the SMR plants. This collaboration combines ENTRA1's investment and project development expertise with NuScale's regulatory-approved technology. The Ohio and Pennsylvania projects are part of a broader trend: NuScale is in "advanced commercial dialogue" with major U.S. tech firms, utilities, and governments for SMR deployments in AI hubs.

Internationally, NuScale's RoPower project in Romania—a 462 MWe SMR facility—aims to replace a coal-fired plant and could power AI infrastructure in Europe. With a final investment decision (FID) expected by early 2026, this project underscores NuScale's global appeal.

Investment Thesis: Why NuScale is a Must-Own

1. Regulatory Tailwinds: NuScale's uprated design (US460) received NRC approval in 2023, streamlining licensing for future projects. This regulatory clarity is rare in the nuclear sector and accelerates deployment timelines.
2. AI-Driven Energy Demand: The IEA projects AI infrastructure will account for 20% of global electricity demand growth by 2030. NuScale's SMRs are uniquely positioned to meet this surge with reliable, carbon-free power.
3. Scalability and Flexibility: Unlike traditional reactors, NuScale's modular design allows for incremental deployment. This aligns with data centers' need to scale energy capacity as AI workloads expand.
4. Strategic Partnerships: The Standard Power and ENTRA1 collaboration is a blueprint for commercial success. NuScale's 2029 projects will serve as a proof of concept for AI infrastructure clients.
5. Cost-Competitiveness: NuScale's SMRs are designed to be cost-competitive with renewables and natural gas. With energy prices volatile and AI demand surging, low-cost, reliable power is a strategic asset.

Challenges and Mitigations

NuScale faces headwinds, including high upfront capital costs and public skepticism around nuclear energy. However, its partnerships with energy developers like ENTRA1 and Standard Power mitigate financial risks through long-term power purchase agreements (PPAs). Additionally, NuScale's focus on smaller, safer reactors addresses public concerns about nuclear waste and safety.

Conclusion: A Nuclear-Driven Future for AI

The AI revolution is energy-hungry, and NuScale Power is building the infrastructure to power it. With regulatory momentum, strategic partnerships, and a product tailored for AI's scalability needs, NuScale is not just a supplier of energy—it is a foundational enabler of the AI era. For investors, the company represents a high-conviction opportunity at the intersection of clean energy and technological disruption.

As AI reshapes the world, NuScale's SMRs will be the quiet, reliable force keeping the lights on.

Investment Advice: NuScale Power (NUSC) is a long-term play on the convergence of AI and clean energy. Investors should monitor its 2029 project milestones and global expansion in Romania and Poland. Given the urgency of AI-driven energy demand, NuScale is poised to become a critical infrastructure player—despite near-term volatility. Positioning now offers exposure to a sector where energy and AI innovation collide.