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Can NuScale's SMRs Solve the Growing AI Power Demand Problem?
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Key Takeaways
NuScale aims to power hyperscale AI data centers with behind-the-meter SMRs for 24/7 electricity.
NuScale says NRC approval for a site-boundary EPZ enables adjacent siting, cutting transmission costs.
SMR's 50MW and 77MW designs use commercially available LEU, avoiding HALEU supply bottlenecks.
The artificial intelligence (AI) boom is becoming one of the biggest growth drivers for the nuclear industry, and NuScale Power (SMR - Free Report) is positioning itself as a key beneficiary. The company’s small modular reactor (“SMR”) technology is being designed to meet the enormous electricity needs of hyperscale AI data centers.
NuScale’s opportunity in AI data centers comes down to one thing— power demand is exploding. AI facilities need huge amounts of electricity around the clock, and many hyperscalers are now looking for dedicated on-site power instead of depending entirely on overloaded public grids. This is creating growing interest in “behind-the-meter” energy solutions, where power is generated directly next to the data center itself. NuScale believes it has a major competitive edge in this regard.
NuScale’s Regulatory & Fuel Edge
NuScale is currently the only SMR company with U.S. Nuclear Regulatory Commission (NRC) approval for behind-the-meter operations alongside a site-boundary emergency planning zone (EPZ). This allows NuScale reactors to be located directly adjacent to data centers and industrial facilities without the large emergency planning requirements associated with traditional nuclear plants. This can significantly reduce transmission costs, speed deployment timelines, and improve energy reliability for AI operators.
Unlike many advanced reactor developers still pursuing approvals, NuScale already has NRC approval for both its 50 MW and 77 MW designs under the Part 52 licensing framework.
Fuel availability is another differentiator. NuScale uses conventional low-enriched uranium (LEU), which is commercially available today. Competing advanced reactor designs often rely on high-assay low-enriched uranium(HALEU) fuel, which still lacks large-scale commercial availability in North America. Avoiding HALEU supply constraints removes a key bottleneck for near-term deployments.
Supply Chain and Funding Momentum Support the AI Push
NuScale is also strengthening its manufacturing ecosystem for AI-related demand growth. The company’s partnerships on this front, with Framatome and Doosan Enerbility, augur well.
Meanwhile, NuScale and its strategic partner ENTRA1 Energy continue progressing discussions with the Tennessee Valley Authority for up to 6 gigawatts of nuclear deployment using NuScale technology.
Potential international funding support tied to AI and energy infrastructure is another positive. Japan and South Korea are ramping up investments in nuclear energy, semiconductors, and AI infrastructure. Japan’s $550 billion U.S.-Japan framework agreement and South Korea’s proposed $350 billion initiative could help support large-scale nuclear deployment tied to rising AI-driven electricity demand.
While commercial deployment is still ahead for NuScale, AI data centers are increasingly becoming central to its long-term growth strategy.
Competitive Landscape: Oklo & NANO Nuclear
Oklo Inc. (OKLO - Free Report) is aligning itself with the fast-growing AI infrastructure market. The company’s planned 1.2-gigawatt Aurora-Ohio campus tied to Meta Platforms highlights its focus on supplying clean baseload power for large-scale data centers. Oklo is also working with NVIDIA and Los Alamos National Laboratory on AI-enabled modeling and digital twin technologies aimed at accelerating nuclear fuel development and validation work. Together, these partnerships strengthen Oklo’s positioning around the growing link between AI infrastructure and nuclear power demand.
NANO Nuclear Energy (NNE - Free Report) is also targeting the AI data center opportunity through a strategic collaboration with Super Micro Computer. The partnership will explore integrating NANO Nuclear’s microreactors with Supermicro’s AI server and data center infrastructure to provide dedicated on-site nuclear power. The collaboration reflects growing industry efforts to position advanced nuclear energy as a long-term solution for the massive electricity needs of AI infrastructure and hyperscale data centers.
SMR's Price Performance, Valuation & Estimates
Shares of NuScale Power have declined more than 60% over the past year, underperforming the industry.
Image Source: Zacks Investment Research
In terms of trailing 12-month Price/Book, NuScale Power shares are trading at 3.52X.
Image Source: Zacks Investment Research
See how estimates for SMR’s bottom line have been revised over the past 90 days.
Image Source: Zacks Investment Research
NuScale Power currently carries a Zacks Rank #3 (Hold).
View the Zacks #1 Rank List
Image: Bigstock
Can NuScale's SMRs Solve the Growing AI Power Demand Problem?
Key Takeaways
The artificial intelligence (AI) boom is becoming one of the biggest growth drivers for the nuclear industry, and NuScale Power (SMR - Free Report) is positioning itself as a key beneficiary. The company’s small modular reactor (“SMR”) technology is being designed to meet the enormous electricity needs of hyperscale AI data centers.
NuScale’s opportunity in AI data centers comes down to one thing— power demand is exploding. AI facilities need huge amounts of electricity around the clock, and many hyperscalers are now looking for dedicated on-site power instead of depending entirely on overloaded public grids. This is creating growing interest in “behind-the-meter” energy solutions, where power is generated directly next to the data center itself. NuScale believes it has a major competitive edge in this regard.
NuScale’s Regulatory & Fuel Edge
NuScale is currently the only SMR company with U.S. Nuclear Regulatory Commission (NRC) approval for behind-the-meter operations alongside a site-boundary emergency planning zone (EPZ). This allows NuScale reactors to be located directly adjacent to data centers and industrial facilities without the large emergency planning requirements associated with traditional nuclear plants. This can significantly reduce transmission costs, speed deployment timelines, and improve energy reliability for AI operators.
Unlike many advanced reactor developers still pursuing approvals, NuScale already has NRC approval for both its 50 MW and 77 MW designs under the Part 52 licensing framework.
Fuel availability is another differentiator. NuScale uses conventional low-enriched uranium (LEU), which is commercially available today. Competing advanced reactor designs often rely on high-assay low-enriched uranium(HALEU) fuel, which still lacks large-scale commercial availability in North America. Avoiding HALEU supply constraints removes a key bottleneck for near-term deployments.
Supply Chain and Funding Momentum Support the AI Push
NuScale is also strengthening its manufacturing ecosystem for AI-related demand growth. The company’s partnerships on this front, with Framatome and Doosan Enerbility, augur well.
Meanwhile, NuScale and its strategic partner ENTRA1 Energy continue progressing discussions with the Tennessee Valley Authority for up to 6 gigawatts of nuclear deployment using NuScale technology.
Potential international funding support tied to AI and energy infrastructure is another positive. Japan and South Korea are ramping up investments in nuclear energy, semiconductors, and AI infrastructure. Japan’s $550 billion U.S.-Japan framework agreement and South Korea’s proposed $350 billion initiative could help support large-scale nuclear deployment tied to rising AI-driven electricity demand.
While commercial deployment is still ahead for NuScale, AI data centers are increasingly becoming central to its long-term growth strategy.
Competitive Landscape: Oklo & NANO Nuclear
Oklo Inc. (OKLO - Free Report) is aligning itself with the fast-growing AI infrastructure market. The company’s planned 1.2-gigawatt Aurora-Ohio campus tied to Meta Platforms highlights its focus on supplying clean baseload power for large-scale data centers. Oklo is also working with NVIDIA and Los Alamos National Laboratory on AI-enabled modeling and digital twin technologies aimed at accelerating nuclear fuel development and validation work. Together, these partnerships strengthen Oklo’s positioning around the growing link between AI infrastructure and nuclear power demand.
NANO Nuclear Energy (NNE - Free Report) is also targeting the AI data center opportunity through a strategic collaboration with Super Micro Computer. The partnership will explore integrating NANO Nuclear’s microreactors with Supermicro’s AI server and data center infrastructure to provide dedicated on-site nuclear power. The collaboration reflects growing industry efforts to position advanced nuclear energy as a long-term solution for the massive electricity needs of AI infrastructure and hyperscale data centers.
SMR's Price Performance, Valuation & Estimates
Shares of NuScale Power have declined more than 60% over the past year, underperforming the industry.
In terms of trailing 12-month Price/Book, NuScale Power shares are trading at 3.52X.
See how estimates for SMR’s bottom line have been revised over the past 90 days.
NuScale Power currently carries a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.