SMRs & ADVANCED REACTORS | A DATA BUSINESS
Intelligent energy fuelling nuclear
As hyperscalers race to expand AI infrastructure, electricity demand
from data centres is surging – and current grid plans may not keep up. Small Modular Reactors (SMRs) are being presented as a potential clean, scalable solution. But are they fast or proven enough to deliver before the pressure on the grid becomes unmanageable?
By Anthony DeRuijter, Assistant Vice President, Third Bridge
SINCE THE RISE TO PROMINENCE of ChatGPT just two and a half years ago, the adoption of AI tools by businesses, governments and individuals globally has grown exponentially. Recent research suggests the global LLM market was worth nearly $6.33bn in 2024 and is expected to grow to $25.22bn by 2029, a compound annual growth rate of 31.83%. Survey data from Elon University meanwhile suggests more than half of Americans now regularly use LLMs, a remarkable statistic given the relative novelty of this technology. The enthusiasm for this technology however is tempered by significant questions about how to power it. Recent research published in Nature estimated that “implementing ChatGPT-like AI into every Google search would require between 400,000 and 500,000 NVIDIA A100 servers”. This would require 23–29 TWh of energy annually – 23–30 times the energy of a normal search. When it comes to delivering power at this scale, and
sustainability, nuclear energy has quickly become the favoured solution for powering data centres and the AI revolution. It’s here where things get complicated, however. There are a range of different models available to players in the industry, as well as a range of financial, regulatory and delivery challenges to be met.
Chain reaction Nuclear energy dominated headlines and data-centre hyperscalers’ press releases in the back-end of 2024, with a number of models being trialled to help AI go nuclear.
Co-location with existing large reactors (i.e. the
Talen-Amazon Web Services data centre deal) and Power Purchasing Agreements (PPA) underwriting the restart of dormant reactors (i.e. Constellation Energy’s revival of Three Mile Island for Microsoft) both highlighted approaches available for the current light-water reactor fleet. Alongside this, though, hyperscalers have shown themselves to be open to advanced reactor technologies as well. Recent notable corporate agreements have included Google and Kairos Power’s partnership on the delivery of up to 500 MW of power from up to seven molten salt reactors, with expectations that the first reactor would be running by 2030 and the full fleet complete by 2035. Google has also entered into an agreement with start-up Elementl Power to develop three sites for advanced reactors, with each site expected to generate at least 600 MW. Upon project completion, Google will retain the option to purchase power from the reactors. Amazon, meanwhile, recently announced a co-investment
in X-energy’s US$500m Series C funding round, further committing to an initial 320 MW Small Modular Reactor (SMR) project with Energy Northwest in Washington State using X-energy’s design. The project includes an option to increase the installed capacity to 960 MW. Not to be forgotten, Meta has announced a request for
proposals (RFP) for 1-4 GW of new nuclear capacity, with eligibility extended to both traditional large reactors as well as SMR projects.
Above: Amazon has announced a co-investment in X-energy’s funding round, committing to a 320 MW SMR project 20 | July 2025 |
www.neimagazine.com
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