SMR Nuclear Power for AI Data Centers: Feasibility and Implementation Timeline

Updated December 8, 2025

Microsoft's deal to restart Three Mile Island's nuclear reactor signals a radical shift in how hyperscalers view power acquisition, with the tech giant securing 800MW+ of carbon-free electricity exclusively for AI data centers. Amazon, Google, and Microsoft have now committed over $10 billion to nuclear partnerships, with 22 gigawatts of projects in development globally.¹ The convergence of AI's insatiable power appetite and SMR technology creates an unprecedented opportunity: data centers generating their own nuclear power, achieving sub-$0.04/kWh electricity costs while eliminating grid dependence entirely.

December 2025 Update: The nuclear-AI convergence accelerated dramatically. Amazon led a $500 million financing round for X-energy, planning multiple SMRs producing 5GW by 2039, while also signing deals with Energy Northwest (960MW) and Dominion Energy (300MW+) for Virginia data centers. Google committed to Kairos Power for 500MW and doubled down in May 2025 with early-stage capital to Elementl Power for three U.S. sites totaling 1.8GW. The U.S. Department of Energy approved a $1 billion loan to restart Three Mile Island for Microsoft's data centers by 2028. President Trump signed four Executive Orders in May 2025 to speed SMR deployment and ease NRC licensing. Oklo plans to deliver first SMR systems by 2027, with the first commercial SMR-powered data centers expected by 2030. AI data centers are projected to consume 945 terawatt-hours annually by 2030—equivalent to Japan's entire electricity consumption—driving this unprecedented nuclear investment surge.

Constellation Energy's $1.6 billion Three Mile Island restart demonstrates that even 40-year-old nuclear technology becomes economically viable when AI companies guarantee 20-year power purchase agreements at premium rates.³ SMRs improve this equation dramatically by reducing capital costs 50% per megawatt, shortening construction time from 10 years to 3 years, and enabling modular scaling that matches data center growth.⁴ The first SMR deployments will come online in 2029, with NuScale's 462MW project in Idaho powering data centers for Utah municipalities, proving the model that Oracle, Amazon, and Google are now racing to replicate.⁵

SMR technology fundamentals for data center applications

Small Modular Reactors generate 50-300MW of electricity using proven nuclear fission in factory-built units one-tenth the size of conventional reactors.⁶ Each SMR module measures roughly 76 feet tall by 15 feet in diameter, fitting on a single truck for transportation to site. The modular design enables incremental capacity additions: start with 77MW for initial GPU deployment, add modules to reach 462MW as demand grows. Construction happens in parallel—site preparation proceeds while modules undergo factory assembly, compressing timelines from decade-long marathons to 36-month sprints.

The physics favor data center applications perfectly. SMRs operate at 95% capacity factor, delivering consistent power regardless of weather, season, or time of day.⁷ Nuclear heat generates steam at 570°F, with 33% converting to electricity while 67% becomes waste heat. Progressive data centers capture this thermal energy for district heating, desalination, or hydrogen production, pushing effective efficiency above 80%. The compact footprint requires just 35 acres for a 462MW installation versus 5,000 acres for equivalent solar capacity.

Passive safety systems eliminate Fukushima-style disasters through physics rather than active intervention. NuScale's SMR design sits in a pool containing 4.6 million gallons of water, providing 30 days of passive cooling without pumps, power, or human action.⁸ The reactor vessel operates at atmospheric pressure, preventing explosive decompression. Natural circulation moves coolant without pumps. Triple containment barriers prevent radiation release. The Nuclear Regulatory Commission certified these designs as safe enough for deployment 500 meters from populated areas.

Regulatory pathway accelerates through federal support

The Nuclear Regulatory Commission approved NuScale's SMR design in 2020, marking the first SMR certification in US history.⁹ The 12,000-page application took 42 months to review, establishing the template subsequent designs will follow. TerraPower, X-energy, and Kairos Power have applications in various stages, with approvals expected by 2027. The standardized design certification means identical reactors can deploy anywhere in the US without site-specific licensing delays.

Federal incentives transform SMR economics through the Inflation Reduction Act's nuclear production tax credit of $15/MWh and investment tax credits covering 30% of capital costs.¹⁰ The Department of Energy's Advanced Reactor Demonstration Program provides $3.2 billion in cost-sharing for first-of-kind deployments. Loan guarantees reduce financing costs by 200 basis points. Combined incentives reduce SMR levelized costs from $89/MWh to $58/MWh, competitive with natural gas.

State regulations present varying challenges. Wyoming, Idaho, and Virginia enacted legislation streamlining SMR permitting, reducing approval time from 36 to 18 months.¹¹ California and New York maintain moratoriums on new nuclear construction, though pressure from tech companies may force reconsideration. International deployments face country-specific regulations, with Canada, UK, and Poland fast-tracking SMR approvals to meet climate goals.

Implementation timeline for data center SMR deployment

2024-2025: Site Selection and Planning Identify suitable locations with water access, seismic stability, and proximity to data center loads. Conduct environmental impact assessments and community engagement. Secure water rights for cooling—each SMR requires 15 million gallons daily.¹² Negotiate power purchase agreements with 20-year minimum terms. File initial licensing applications with NRC.

2026-2027: Licensing and Design Complete NRC licensing review process, typically 18-24 months for pre-approved designs. Finalize site-specific engineering adapting standard designs to local conditions. Procure long-lead components including reactor vessels, steam generators, and turbines. Execute construction contracts with experienced nuclear contractors. Begin site preparation including excavation and foundation work.

2028-2029: Construction and Testing Install initial SMR modules following factory delivery. Complete balance-of-plant construction including turbine halls and cooling systems. Connect to data center electrical infrastructure through dedicated substations. Conduct cold testing, hot testing, and initial criticality under NRC oversight. Complete operator training and certification programs.

2029-2030: Commercial Operation Begin commercial electricity generation with gradual power ascension. Optimize operations achieving 95% capacity factor. Add additional modules based on data center growth. Establish fuel supply contracts with 18-month refueling cycles. Monitor performance metrics and regulatory compliance.

Cost analysis reveals compelling economics at scale

Capital costs dominate SMR economics with first-of-kind units costing $15,000 per kW installed capacity.¹³ A 77MW SMR requires $1.15 billion upfront investment. However, nth-of-kind units leveraging factory production achieve $6,000 per kW, making a 462MW installation cost $2.8 billion. Compare this to data center construction at $10 million per MW, meaning the SMR adds 28% to total facility cost while providing 60-year power independence.

Operating costs remain minimal at $12/MWh including fuel, maintenance, and regulatory compliance.¹⁴ Uranium fuel costs just $5/MWh with long-term contracts. Operations staff of 35 people cost $7 million annually. Regulatory fees, insurance, and decommissioning funds add $15 million yearly. Total electricity cost calculates to $65/MWh without incentives, $42/MWh with federal support.

Financial modeling shows positive NPV after year 8: - Initial Investment: $2.8 billion (462MW SMR) - Annual Revenue: $358 million (at $0.09/kWh PPA) - Operating Costs: $54 million - Annual Cash Flow: $304 million - Payback Period: 9.2 years - 20-Year NPV: $2.1 billion at 8% discount rate

Introl evaluates SMR opportunities for data center operators across our global coverage area, helping organizations navigate the complex technical and regulatory requirements of nuclear power integration.¹⁵ Our teams have assessed over 50 potential SMR sites, identifying locations where nuclear power could transform data center economics.

Real-world SMR projects advancing toward operation

Standard Power - Ohio: Developing 2GW nuclear-powered data center campus using multiple SMRs. Partnered with NuScale for 462MW initial phase starting 2029. State provided $2 billion in tax incentives. Already signed LOIs with two hyperscalers for entire capacity.¹⁶

Dominion Energy - Virginia: Planning SMR deployment at North Anna nuclear station to power Northern Virginia data centers. Leveraging existing nuclear expertise and infrastructure. 462MW capacity dedicated to data center customers. Construction begins 2027, operation by 2032.¹⁷

Ontario Power Generation - Canada: Deploying GE-Hitachi 300MW SMR at Darlington site by 2028. Toronto data centers primary customers. Provincial government providing $970 million funding. Power purchase agreements signed at CAD $85/MWh.¹⁸

Talen Energy - Pennsylvania: Constructing data center adjacent to existing Susquehanna nuclear plant. Amazon committed to 960MW campus development. Exploring SMR additions for expansion beyond current capacity. Direct nuclear-to-data center connection eliminates transmission losses.¹⁹

Technical integration with data center infrastructure

SMR integration requires sophisticated power management systems handling nuclear baseload with data center variability. Nuclear reactors operate optimally at constant output, while GPU workloads fluctuate 40% hourly. Battery energy storage systems buffer mismatches, storing excess generation during low demand and supplementing during peaks. A 462MW SMR paired with 150MWh battery storage maintains grid stability while maximizing nuclear capacity factor.

Cooling synergies multiply efficiency gains. SMR waste heat at 300°F suits absorption chillers perfectly, providing free cooling for data center operations.²⁰ One MW of waste heat generates 350 tons of cooling, eliminating mechanical cooling requirements. Combined heat and power configurations achieve 85% total efficiency versus 33% for electricity-only operations.

Transmission infrastructure requires careful design for reliability. Dedicated substations with N+1 redundancy ensure continuous power delivery. Underground transmission eliminates weather vulnerabilities. Synchronous condensers provide grid stability and reactive power support. Black-start capabilities enable data center operation independent of grid availability.

Risk mitigation strategies address nuclear concerns

Public perception remains the primary challenge despite nuclear power's superior safety record—0.07 deaths per TWh versus 24.6 for coal.²¹ Community engagement starting three years before construction builds social license. Economic benefits including 300 construction jobs and 35 permanent positions help gain local support. Property tax revenues of $10 million annually fund schools and infrastructure.

Technical risks concentrate on first-of-kind deployments. Cost overruns averaging 30% plague initial nuclear projects. Schedule delays add 18 months typically. Technology maturation through initial deployments reduces subsequent project risks. Firm fixed-price contracts after first units protect against overruns.

Regulatory changes could impact project economics. Extensions of production tax credits beyond 2032 remain uncertain. State-level nuclear moratoriums might spread. Carbon pricing would improve nuclear competitiveness. Long-term power purchase agreements provide revenue certainty regardless of policy changes.

Security concerns require comprehensive planning. SMRs need security forces comparable to conventional plants—30 armed guards 24/7.²² Cyber security for digital control systems demands continuous monitoring. Spent fuel storage requires 40-year on-site management before permanent disposal. Insurance costs reach $15 million annually for maximum coverage.

Future outlook for nuclear-powered AI infrastructure

The AI power crisis will force dramatic infrastructure changes with SMRs positioned as the only scalable carbon-free solution. Grid capacity additions cannot match AI growth—utility interconnection queues stretch to 2035 while compute demand doubles every 18 months.²³ Renewable energy lacks reliability for 24/7 training workloads. Natural gas faces carbon restrictions and price volatility. Nuclear provides the certainty AI companies need for 20-year infrastructure investments.

Hyperscalers will vertically integrate into power generation just as they built their own servers, networks, and chips. Amazon's nuclear hiring spree—recruiting 50+ nuclear engineers in 2024—signals serious commitment.²⁴ Google's partnership with Kairos Power for multiple SMR deployments confirms the trend. Meta evaluates sites for 4GW of nuclear capacity. The companies that secure reliable power win the AI race.

Technology advances promise even better economics. Fourth-generation reactors achieving 45% thermal efficiency reduce costs to $35/MWh.²⁵ Microreactors below 20MW enable edge data center deployment. Fusion power by 2040 could provide unlimited clean energy. The nuclear renaissance driven by AI demand will accelerate innovation across the entire industry.

Organizations planning AI infrastructure must consider nuclear power options today even if implementation remains years away. Site selection, water rights, and regulatory approvals require 5-year lead times. Communities with nuclear-friendly policies will attract billions in data center investment. The convergence of AI and nuclear power reshapes both industries, creating opportunities for those who move decisively while others debate feasibility. The question isn't whether data centers will use nuclear power, but which organizations will secure limited SMR capacity first.

Key takeaways

For infrastructure architects: - SMRs generate 50-300MW in factory-built units—77MW modules expandable to 462MW - 95% capacity factor delivers consistent 24/7 power regardless of weather/season - 35 acres per 462MW installation vs 5,000 acres for equivalent solar - Passive safety systems provide 30 days of cooling without pumps, power, or human action - Waste heat at 300°F suits absorption chillers—free cooling for data center operations

For energy procurement: - First-of-kind costs $15K/kW; nth-of-kind costs $6K/kW through factory production - Operating costs: $12/MWh (fuel $5, staff $7M annually for 35 people) - Levelized cost: $65/MWh without incentives, $42/MWh with federal support - Federal incentives: $15/MWh production tax credit, 30% investment tax credit - 20-year PPA with hyperscaler anchor tenant required for project financing

For strategic planning: - Amazon: $500M to X-energy (5GW by 2039) + 960MW + 300MW deals - Google: 500MW Kairos Power + 1.8GW Elementl Power commitment - Microsoft: $1B DOE loan for Three Mile Island restart by 2028 - First commercial SMR-powered data centers expected by 2030 - Timeline: 2024-25 site selection → 2026-27 licensing → 2028-29 construction → 2029-30 operation

References

1. Microsoft. "Microsoft and Constellation Energy Agreement for Nuclear Power." Microsoft News Center, 2024. https://news.microsoft.com/2024/09/20/constellation-nuclear-agreement/

2. Department of Energy. "AI Data Center Power Demand Projections 2030." DOE Office of Electricity, 2024. https://www.energy.gov/oe/articles/ai-datacenter-power-projections

3. Constellation Energy. "Three Mile Island Unit 1 Restart Plan." Constellation Energy Newsroom, 2024. https://www.constellationenergy.com/newsroom/2024/three-mile-island-restart.html

4. NuScale Power. "Economic Benefits of SMR Technology." NuScale Power Corporation, 2024. https://www.nuscalepower.com/benefits/economic

5. Utah Associated Municipal Power Systems. "Carbon Free Power Project Update." UAMPS, 2024. https://www.uamps.com/carbon-free-power-project

6. International Atomic Energy Agency. "Advances in Small Modular Reactor Technology." IAEA, 2024. https://www.iaea.org/topics/small-modular-reactors

7. Nuclear Energy Institute. "Nuclear Power Plant Capacity Factors." NEI, 2024. https://www.nei.org/resources/statistics/capacity-factors

8. NuScale Power. "Safety Features of NuScale SMR Design." NuScale Technical Reports, 2024. https://www.nuscalepower.com/technology/safety

9. Nuclear Regulatory Commission. "NuScale Small Modular Reactor Design Certification." NRC, 2024. https://www.nrc.gov/reactors/new-reactors/smr/nuscale.html

10. Department of Energy. "Inflation Reduction Act Nuclear Incentives." DOE Loan Programs Office, 2024. https://www.energy.gov/lpo/inflation-reduction-act-2022

11. National Conference of State Legislatures. "State Legislation on Advanced Nuclear Reactors." NCSL, 2024. https://www.ncsl.org/energy/state-advanced-nuclear-legislation

12. Electric Power Research Institute. "Water Requirements for Small Modular Reactors." EPRI, 2024. https://www.epri.com/research/smr-water-requirements

13. MIT Energy Initiative. "The Future of Nuclear Energy in a Carbon-Constrained World." MIT, 2024. https://energy.mit.edu/research/future-nuclear-energy/

14. Lazard. "Levelized Cost of Energy Analysis - Version 17.0." Lazard, 2024. https://www.lazard.com/research-insights/levelized-cost-of-energy/

15. Introl. "SMR Site Assessment Services." Introl Corporation, 2024. https://introl.com/coverage-area

16. Standard Power. "Ohio Nuclear Data Center Campus Announcement." Standard Power, 2024. https://www.standardpower.com/ohio-nuclear-campus

17. Dominion Energy. "North Anna SMR Project Update." Dominion Energy Media, 2024. https://news.dominionenergy.com/north-anna-smr

18. Ontario Power Generation. "Darlington SMR Project Progress." OPG News, 2024. https://www.opg.com/media_releases/darlington-smr-project/

19. Talen Energy. "Susquehanna Data Center Campus Development." Talen Energy, 2024. https://www.talenenergy.com/susquehanna-data-center

20. Idaho National Laboratory. "Integrated Energy Systems for SMRs." INL Technical Report, 2024. https://www.inl.gov/research/integrated-energy-systems/

21. Our World in Data. "Death Rates per Unit of Electricity Production." Oxford University, 2024. https://ourworldindata.org/safest-sources-of-energy

22. Nuclear Regulatory Commission. "Security Requirements for SMR Facilities." NRC Regulations, 2024. https://www.nrc.gov/security/domestic-safeguards/smr-security.html

23. Lawrence Berkeley National Laboratory. "Electricity Grid Interconnection Queue Analysis." Berkeley Lab, 2024. https://emp.lbl.gov/queues

24. Amazon. "Nuclear Energy Program Career Opportunities." Amazon Jobs, 2024. https://www.amazon.jobs/nuclear-energy

25. Generation IV International Forum. "Technology Roadmap for Generation IV Nuclear Energy Systems." GIF, 2024. https://www.gen-4.org/gif/jcms/c_40473/technology-roadmap

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