AI Power Disruption Complete Analysis Series
Now: Part 4 | Small Modular Reactor (SMR) Technology and Infrastructure Analysis
Part 1: The Reality of AI Power Demand Spikes
Part 2: The AI Data Center Power Infrastructure Crisis
AI Eats Electricity? ‘Electricity' Becomes More Precious than Nvidia
⚡ Small Modular Reactor (SMR) Technology Key Takeaways
✅ SMR market size forecast to grow from $5.8 billion in 2022 to $13.4 billion in 2032, at a CAGR of 8.71 TP3T
✅ NuScale becomes the first SMR company in the U.S. to receive NRC certification for its 77 MWe module (2025.5)
✅ TerraPower sodium reactor in Wyoming breaks ground (2024.6), with commercial operation targeted for 2030
✅ Korea i-SMR 170MW in development, standard design approval in 2028 → commercialization target in 2035
✅ 24/7 reliable baseline power supply for AI data centers, with a capacity factor of 95% or higher
With the explosive growth in power demand in AI data centers, it's no surprise that the Baseload power for round-the-clock reliabilityis becoming increasingly important. Renewables like solar and wind alone are not enough to solve the volatility problem, Small Modular Reactors (SMRs)are gaining traction as the next generation of power solutions. In this Part 4, we'll cover the technical characteristics of SMRs, the major players, and the Possibilities and limitations for powering AI infrastructureto analyze the.
Small Modular Reactor (SMR) Technology Overview
Small Modular Reactors (SMRs) are a type of nuclear reactor that utilizes a Small reactors with an output of 300 MW or lesswhich is built in modular form in a factory and assembled on site. Unlike conventional large nuclear power plants (1,000 MW or more), it has a shorter construction period, lower upfront investment, and the ability to add modules as demand increases. Flexible power deliveryis possible. There are currently 70-80+ SMR designs under development worldwide, with full commercialization expected in the 2030s.
1Technology breakdown by SMR generation
SMR technology is categorized into different generations based on cooling materials and design. Gen IIIis a miniaturization of proven technology based on existing light water reactors (PWRs), Gen III+ (Gen III+)uses a one-piece design and a piezoelectric system. Generation IV (Gen IV)uses innovative cooling materials such as sodium, gas, and molten salt to achieve higher efficiency and safety.
| Generation | Coolant | Representative companies/models | Features |
|---|---|---|---|
| Gen III | Hard Water (PWR) | SMART (United States) | Proven technology, regulatory friendly |
| Gen III | Hard water (integral) | NewScale, i-SMR | Prevention, Modularization |
| Gen IV (SFR) | Sodium | TerraPower Natrium | High efficiency, heat storage |
| Gen IV (HTGR) | Gas (Helium) | X-energy Xe-100 | High temperature industrial heat supply |
💡 Key takeaways: Closest to commercialization today are Gen III+ light water reactor-based SMRs, with Gen IV expected to be in full swing after the mid-2030s
📊 NoteSource: IAEA, NEA, World Nuclear Association combined (as of 2025.12)
2Key benefits of SMR and its suitability for AI data centers
AI data centers are 24x7x365 uninterrupted powerin order to operate. While solar or wind power fluctuates in output depending on weather conditions, SMRs require a Capacity Factor of 95% or higherThe air-cooled design also allows for installation in landlocked areas, enabling power to be located close to the data center.
⚡ Key benefits of SMRs
- Baseline Power: 24/7 stable supply, capacity factor 95%+
- Modularization: Scale capacity to meet demand
- Location flexibility: Air-cooled design allows for inland installation
- Pigeonhole: Natural cooling in case of power loss
- Zero Carbon: No CO2 emissions during operation
⚠️ Current Limitations of SMR
- Delayed commercialization: Mostly operational after 2030
- Unproven economics: First unit cost $3,000~6,000/kW
- Regulatory uncertainty: Lack of SMR-specific licensing system
- Social acceptance: Local opposition to nuclear power plants
- LCOE: $89~102/MWh (higher than renewables)
NuScale - The first NRC-certified SMR in the U.S.
NewScale Power (NYSE: SMR) is a leading provider of The only SMR company with Nuclear Regulatory Commission (NRC) design certification in the U.S.. In 2022, a 50 MWe module was certified, and in May 2025, a 77 MWe module with 251 TP3T higher outputThe company is currently working on several projects in Romania and the U.S., but has faced challenges, including the cancellation of the Idaho UAMPS project.
3NewScale Technology and Project Status
NewScale's VOYGR design is based on the Up to 12 77 MWe modulesscalable to 924 MWe. A key feature is the Full piezoelectric systemwhich allows for indefinite cooling through natural convection and conduction, even in the event of power loss. While the Idaho UAMPS project was canceled in November 2023 due to cost overruns ($3.6 billion to $9.3 billion), the Romanian RoPower project (6 units × 77 MWe) and a collaboration with the Tennessee River Basin Authority (TVA) for up to 6 GW are underway.
| Projects | Location | Scale | Status |
|---|---|---|---|
| RoPower | Romania | 6×77 MWe (462 MWe) | Proceed to FEED Step 2 |
| TVA Cooperation | Tennessee, USA | Up to 6 GW | Enter into a collaboration agreement |
| Standard Power | Ohio/Pennsylvania, USA | 24 modules (1.8 GWe) | Contracts for data centers |
| UAMPS | Idaho, USA | 6×77 MWe | 2023.11 Cancel |
4NewScale Financials and Investment in Korea
Newscale currently supports Pre-revenue stagewhich reported a loss of $1.85 per share on $8 million in revenue for the third quarter of 2025. Shares are down from a 52-week high of $57 to the current $21-23 level. 63% Downin one state. Interestingly, the Doosan Energy and IBK Securities hold approximately 641 TP3T of Class A sharesis that it is doing so. There is a proposal to increase the number of shares available for issuance from 3.32 billion to 6.62 billion at the December 16, 2025 AGM, which could result in dilution.
💡 â Korean connections: Doosan Energy is the largest shareholder and manufacturer of NewScale's reactor pressure vessels. The success of NewScale could have implications for the expansion of Korean nuclear equipment exports. However, there is execution risk as there is no binding power purchase agreement (PPA) yet.
TerraPower - Bill Gates' 4th Generation SMR
TerraPower is a nuclear power company founded in 2008 by Bill Gates, Natrium reactors based on sodium-cooled fast reactors (SFRs)which is being developed. Unlike traditional light water reactors Using sodium as a coolantto operate at higher temperatures (880°C boiling point), and combined with a molten salt energy storage system, the Increased output from 345 MW to over 500 MW over 5 hoursis possible.
5Natrium Wyoming Project Progress
In June 2024, TerraPower will open a new plant in Kemmerer, Wyoming. Groundbreaking for the Natrium demonstration nuclear power plantof the total project cost of approximately $4 billion, $2 billion of which is funded by the U.S. Department of Energy (DOE) ARDP program. In December 2025, the NRC's Final safety assessment completed 1 month ahead of scheduleand construction permits are expected to be issued in early 2026. Concrete pouring for the core area is targeted for 2027, with fuel loading and commercial operation in 2030.
| Year | Key milestones | Details |
|---|---|---|
| 2024.6 | Breaking ground | Non-nuclear zone construction begins, training facilities built |
| 2025.12 | Completed NRC safety assessment | Completed 1 month ahead of schedule |
| 2026 s | Construction permits | Expected NRC final approval |
| 2027 | Pouring concrete in the nuclear zone | Build a full-scale nuclear facility |
| 2030 | Commercial driving | Load fuel, start generating power |
6TerraPower Investment Status and Korean Partnership
In June 2025, TerraPower 6.5 billion investment roundfor the first time. In addition to Bill Gates NVIDIA (nVentures), HDModernwith a cumulative investment of more than $1 billion. Cooperation with Korean companies is also strong. SK Group invested $250 million in 2022, and HD Hyundai signed a partnership to supply and manufacture nuclear reactor pressure vessels. In March 2025 Strategic Cooperation Agreement with HDModernwhich opened up the possibility of introducing Natrium technology in South Korea.
💡 â The Natrium DifferenceSodium coolant has a higher thermal conductivity than water and a boiling point of 880°C, enabling normal pressure operation. In addition, the molten salt thermal storage system can increase output by more than 451 TP3T during peak demand, which is advantageous for compensating for renewable energy variability.
i-SMR Development Status in Korea
In Korea Innovative SMR (i-SMR) The company aims to lead the global SMR market through development. The SMR Alliance is composed of 42 organizations, including Korea Hydro & Nuclear Power (KHNP), Korea Atomic Energy Research Institute (KAERI), and Doosan Energy, Standard Design Authorization (SDA) in 2028 → Commercialization in 2035in development with the goal of.
7i-SMR Technology Characteristics and Competitiveness
i-SMR is a 170 MW Integrated Pressurized Water Reactor (iPWR)scalable to 680 MW in a combination of four modules. As a core technology Piezoelectric, boric acid-free cooling, in-vessel control rod drive (IV-CEDM) and more. Korea already has the capability to respond to regulations, having obtained the world's first standard design license for SMRs (SMART 100 MW class) in 2012.
| Separation | SMART | i-SMR | Remarks |
|---|---|---|---|
| Output | 100 to 110 MWe | 170 MWe | Approximately 601 TP3T increase in output |
| Obtaining an SDA | 2012 (world first) | 2028 Goals | 16-year gap |
| Commercialization | Undecided | 2035 | First unit 0.7 GW |
| Budget | -. | 3,992 billion (2023-28) | Government+Private |
💡 Key takeaways: i-SMR standard design is expected to be completed by the end of 2025, with a review expected within 3 years of the December 31, 2025 regulatory submission.
📊 NoteSource: Ministry of Science and ICT, Ministry of Trade, Industry and Energy, KHNP (as of December 2025)
Comparison to an energy storage system (ESS)
AI Data Center Powering Solutions Energy Storage System (ESS)are also gaining traction. The global ESS market is projected to grow from 172 GWh in 2021 to 1,093 GWh in 2030. However, ESS is not the only Balancing peak load and compensating for renewable energy variabilitybut it is not capable of providing the 24/7 baseline power that AI data centers need.
8SMR vs ESS Characteristics Comparison
| Separation | SMR | ESS (Lithium-ion) | AI data center fit |
|---|---|---|---|
| Power supply type | Baseline power (24/7) | Peak Balancing/Backup | SMR Advantage |
| Capacity Factor | 95%+ | Storage dependency | SMR Advantage |
| When to commercialize | 2030s | Currently available | ESS Advantage |
| Carbon emissions | zero | Power-dependent | SMR Advantage |
| Location constraints | Regulatory/social acceptance | Relative freedom | ESS Advantage |
💡 â Be realisticThe electricity demand of AI data centers will surge between 2025 and 2028, but most SMRs will not be operational until 2030 or later. Therefore, in the short term, ESS, renewables, and restarting existing nuclear power plants are needed, and in the medium to long term, SMRs will be responsible for baseload power. Energy mix strategyis realistic.
Global SMR market outlook and competitive landscape
The SMR market is expected to grow from $5.8 billion in 2022 to Growing at a CAGR of 8.71 TP3T to $13.4 billion in 2032projections. The UK's National Nuclear Laboratory (NNL) predicts that by 2035, the global SMR market will be worth 400 to 600 trillionby 2020. The Nuclear Energy Agency (NEA) estimates that by 2050, global SMR installed capacity will reach 375 GWin the near future.
9Competition for SMR development by country
| 国家 | Representative projects | Government support | Commercialization goals |
|---|---|---|---|
| 🇺🇸 United States | NewScale, TerraPower | ardp 2.01 tp4t (doe) | 2030 |
| 🇨🇳 China | HTR-PM, ACP100 | State-led strategy | 2023 (Commercial Operation) |
| 🇬🇧 United Kingdom | Rolls-Royce SMR | 2.8 billion pounds | Mid-2030s |
| 🇰🇷 United States | i-SMR | 3,992 billion | 2035 |
| 🇨🇦 Canada | BWRX-300 | Support for Ontario | 2030 |
💡 Key takeaways: China to start up HTR-PM in 2021, 8-10 years ahead of U.S. in same-generation technology. U.S. expects nuclear deregulation and accelerated licensing under Trump administration
📊 NoteSource: NEA, IAEA, World Nuclear Association, and a compilation of government announcements (as of December 2025)
🏆 China's leading factors
- State-ledLong-term planning and focused investment
- Get HTR-PM up and running: World's first commercial Gen 4 operation
- Construction capabilities: 32 nuclear reactors under construction simultaneously
- Secure your supply chain: Internalized material production
🇺🇸 U.S. Catch-Up Strategy
- ARDP Program: Supporting the DOE's 2.01 TP4T pilot
- Regulatory simplification: Trump Administration Accelerates Permitting
- Private investment: Big Tech Nuclear Direct Purchase Agreements
- 2030 Goals: 10+ SMRs in operation
This article is based on the For objective informational and educational purposesand is written by the author. This article provides analysis of SMR technology and related companies and is not a recommendation for any specific company or investment product.
The SMR industry is a Rapidly changing with regulatory environments, technology developments, and market conditionsin the United States. Data and analysis in this article is current at the time of writing, please check official sources for the latest information.
