NuScale Power's SMR Revolution: Fueling the $50 Billion Data Center Energy Shift

The rapid rise of artificial intelligence (AI) and high-performance computing has thrust data centers into an energy consumption arms race. By 2030, global data center energy demand is projected to triple, reaching 176 gigawatts (GW)—equivalent to powering nearly 100 million U.S. households. This surge is straining grids and pushing tech giants to seek scalable, low-carbon solutions to meet net-zero targets. Enter NuScale Power, a pioneer in small modular reactors (SMRs), which has positioned itself at the forefront of a $50 billion market poised to redefine how data centers power the AI revolution.

The Regulatory Edge: NuScale's NRC Approval Unlocks Deployment

NuScale's breakthrough lies in its U.S. Nuclear Regulatory Commission (NRC) design certification, the first ever granted for an SMR. This stamp of approval bypasses years of regulatory uncertainty, enabling projects to move swiftly from planning to construction. Competitors face lengthy licensing hurdles, but NuScale's 77-megawatt (MWe) modules are factory-fabricated and pre-approved, slashing deployment timelines. With AI training workloads consuming up to 300% more power than legacy systems, data centers need reliable, 24/7 energy that renewables alone can't provide. SMRs fill this gap, offering baseload power with zero emissions—critical as governments tighten carbon regulations.

Partnerships Powering the Pipeline: Ohio and Pennsylvania Lead the Way

NuScale's partnership with Standard Power and ENTRA1 Energy marks a turning point. The duo is building two SMR-powered data center hubs in Ohio and Pennsylvania, targeting 2 gigawatts (GW) of capacity by 2029. The projects leverage 24 NuScale modules, generating 1,848 MWe—enough to power over 1.5 million homes. These facilities will serve hyperscalers like Amazon and Microsoft, which are racing to decarbonize while expanding AI infrastructure.

The collaboration with ENTRA1, NuScale's exclusive global commercialization partner, ensures end-to-end expertise—from financing to operations. This synergy is vital in a sector where $360 billion in global SMR pipeline projects (as of Q1 2025) demand both technical and financial heft.

The SMR market is projected to grow from $7.08 billion in 2024 to $50 billion by 2035, driven by decarbonization mandates and data center demand.

Why Now? The Perfect Storm for SMRs

1. Regulatory Tailwinds: The Biden administration's Inflation Reduction Act (IRA) offers $60 billion for nuclear innovation, while the Accelerating Nuclear Act streamlines licensing.
2. Data Center Urgency: Traditional grids can't keep pace with AI's power needs. SMRs offer scalability (1.5–300 MW), siting flexibility, and resilience—critical for facilities handling exabytes of data.
3. Competitive Advantage: SMRs undercut coal and gas on levelized costs by 2030, per the International Energy Agency. Their modular design halves construction timelines compared to conventional reactors.

Investment Thesis: NuScale as the SMR Leader

Market Opportunity: The SMR sector is a $50 billion opportunity by 2035, with data centers alone accounting for 39% of the global pipeline (47 GW). NuScale's first-mover advantage—backed by NRC certification and partnerships—positions it to capture a disproportionate share.

Risk Mitigation:
- Regulatory: NRC approval eliminates a key barrier.
- Execution: Projects like Ohio/Pennsylvania are shovel-ready, with Standard Power's track record in infrastructure and ENTRA1's financing acumen.
- Demand: Data centers' energy needs are growing faster than any other sector, and NuScale's tech aligns directly with their decarbonization goals.

Risks to Consider:
- Cost Overruns: SMR projects face upfront capital hurdles (up to $12,000/kW), though economies of scale should ease this.
- Public Perception: Nuclear's historical stigma requires NuScale to emphasize safety and innovation.

Bottom Line: Buy the SMR Narrative Early

NuScale isn't just an energy play—it's a tech infrastructure play. Its SMRs are the missing link for data centers needing reliable, low-carbon power at scale. With partnerships locking in 2 GW of near-term capacity and regulatory tailwinds accelerating, NuScale is primed to dominate a market that will only grow.

For investors, the path is clear: allocate to NuScale or SMR-focused ETFs (e.g., NLR or PWR) as the world's data centers pivot to meet AI's insatiable appetite. The race to power the future is on—and NuScale is leading the charge.

Disclosure: This analysis is for informational purposes only. Consult a financial advisor before making investment decisions.