Big Tech companies are increasingly turning to small modular reactors (SMRs) as a potential solution to meet the growing energy demands of artificial intelligence (AI) and data centers. However, nuclear experts are divided on whether SMRs will be the best solution for AI’s energy needs. SMRs are defined as reactors that produce around 300 megawatts of power, smaller than traditional reactors.
Four main SMR companies, including X-energy, TerraPower, NuScale, and Newcleo, have received nearly $3 billion in equity funding over the past eight years. These companies are working on different types of SMR designs, such as high-temperature gas-cooled reactors, sodium-cooled fast reactors, and lead-cooled fast reactors.
While companies like Alphabet, Amazon, and Microsoft are investing in SMRs with the hope of finding sustainable energy solutions, there is still uncertainty surrounding the future of SMRs in the energy sector. The Center for Strategic & International Studies estimates that US data centers will require between 40 to 90 gigawatts of energy by 2030, further highlighting the need for reliable and efficient energy sources.
Despite the optimism surrounding SMRs, there are challenges ahead. Supply chain issues, regulatory hurdles, and licensing processes could potentially delay the deployment of SMRs in the US. Furthermore, NuScale has faced difficulties in securing deals for its reactors in the country due to rising costs.
Overall, the future of SMRs in the energy industry remains uncertain, with experts emphasizing the need for careful evaluation of the technology’s capabilities and potential challenges. The push toward cleaner, more efficient energy sources for AI and data centers could potentially drive further investments and developments in the SMR sector.
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