What’s Going on with Nuclear Micro Reactors?
As our power consumption takes off (predominantly thanks to AI), one big problem arises:
→ Where will all the power come from?
The power surge ahead
Global data center electricity use is projected to double by 2030, reaching the same level as Japan’s entire grid.
AI’s share of that demand is set to quadruple.
Goldman Sachs says the rise could hit +165% in just a few years.
This kind of growth is happening faster than most energy systems can accommodate.
Can renewables catch up?
Yes, solar and wind are growing. But not fast enough.
Even with record investments, renewables are already committed to powering transport, heating, and industry – not just AI.
Most clean energy sources don’t run 24/7 – and AI needs constant, reliable power, not just when the sun shines or wind blows.
AI demand is rising much faster than clean energy supply. That leaves two options: ‘go dirty or go nuclear’.
Nuclear Micro Reactors
New generation micro reactors and small modular reactors (SMRs) are:
Small and factory-built
Capable of running 24/7 for years, without refuelling
Clean, with near-zero carbon emissions
Designed to be installed right next to data centers, even in remote areas or underground
This is why they’re getting attention: from governments, tech giants, and investors.
Recent SMR Initiatives
Rolls-Royce SMRs (UK)
Selected for national deployment; first reactors planned by 2032. Government committed £2.5 billion.
Westinghouse eVinci (US)
Tiny, portable 5 MWe reactor—approved for testing. 8-year fuel cycle, no on-site refuelling.
Last Energy PWR-20 (Texas)
30 reactors being built to power data centers. First large-scale micro reactor deployment in the US.
Why it is a fit for AI
Modern AI data centers need:
High, steady power
→ Ability to expand in remote areas
→ Energy control and independence
→ Low emissions to meet ESG targets
Micro reactors check all these boxes. They’re small, clean, and can go where other power sources can’t.
Who’s investing?
Amazon is buying nuclear power for its data centers through a long-term deal with Talen Energy- and backing SMR company X-energy.
Google is securing nuclear power for its data centers through a first-of-its-kind agreement with Kairos Power — committing to buy up to 500 MW from a U.S. fleet of SMRs by 2035.
Governments in the US, UK, and EU have committed billions to make micro-nuclear a reality.
Although it sounds promising, two main challenges are – regulation & public perception and supply chain.
UK is leading the way in restarting its nuclear capacity and in fixing its supply chain challenges. France follows closely as it has maintained its commitment to nuclear power. The NUWARD project, led by EDF (Electricity of France), aims for deployment of SMRs by 2030. However, it seems that the UK is slightly ahead in engineering capacity and will probably be the first to roll out SMRs at a larger scale.
Switzerland plans to lift the ban, opening the door to SMRs in the 2030s, however regulatory discussions at an early stage and the outcome will probably lag behind UK and France.
Germany’s nuclear engineering is strong in Europe, however Germany maintains a firm anti-nuclear stance, having completed its nuclear phase-out in 2023, with no political or legal support for SMR deployment. If there is no rollback of regulation in Germany, its engineering capacity is likely to migrate to France, UK or U.S.
In terms of supply chain, the key challenge is fuel. SMRs mostly operate on HALEU fuel (high-assay low-enriched uranium), which is in short supply and has limited producers globally. De-globalization made access to HALEU worse.
