The nuclear option: What SMR power deals require

Artificial intelligence relies on significant computing power, which in turn requires significant energy. Jim Doerfler explains why small modular reactors (SMRs) are a natural fit and what SMR power deals for data centers require.

Some high-profile nuclear projects in the United States have suffered cost overruns. SMRs are smaller and use standardized designs, which helps with regulatory review and brings costs down. The contracting concepts are the same but apply differently: a project may still use a turnkey engineering, procurement, and construction contractor, but a nuclear plant raises additional regulatory issues. Many projects are being developed at or next to existing nuclear sites, which avoids some of the siting issues of a greenfield project.

Jim sees some projects potentially operational as early as 2028, with others further out, into the early 2030s. The biggest issue now is investor appetite and market conditions. Because these projects take time to develop, he recommends starting early to secure the right approvals and financing.