Small nuclear reactors could be America’s next power move
Interest is growing in small nuclear reactors (SMRs) as a potential solution to meet America's rising energy demands, particularly from energy-hungry AI data centers. U.S. tech giants like Amazon, Microsoft, Google, and Meta are investing billions in nuclear energy to power their facilities. While offering a stable alternative, SMRs face challenges related to high input costs, public perception, nuclear waste disposal, and complex local approval processes.
A growing interest in small nuclear reactors (SMRs) is emerging in the U.S. as a potential answer to the nation's increasing energy demands, driven by the proliferation of AI data centers, extreme weather, and the electrification of vehicles. U.S. tech giants, including Amazon, Microsoft, Google, and Meta, are investing billions in nuclear energy to power their facilities, with Microsoft notably signing a $16 billion agreement with Constellation Energy to help restart part of the Three Mile Island plant in Pennsylvania. The U.S. Department of Energy aims to quadruple nuclear energy output by 2050 and has backed five new reactors with a $17.5 billion loan and committed $900 million to SMRs.
Despite nuclear power already providing about 18% of U.S. electricity, SMRs face significant hurdles. These include high input costs (ranging from $1 billion to $6 billion per unit), the need for a specialized supply chain for reactor-grade uranium, and the challenge of managing nuclear waste, particularly after the halt of the Yucca Mountain storage site project in Nevada. Public opinion is also a factor, with a Gallup poll indicating 71% opposition to local data center construction over energy and water concerns, though less opposition to nuclear plants.
Advancements have reduced reactor size, enabling off-site manufacturing and easier transport. Proponents, such as Katy Huff of the University of Wisconsin-Madison, advocate for a "Lego-set" assembly approach to drive down costs. While only two next-generation small reactors are currently under U.S. construction by private firms (TerraPower in Wyoming and Koros Power in Tennessee), the Nuclear Regulatory Commission is working to expedite SMR design approvals, aiming for 18 months or less without compromising safety.