Small modular reactors will power the AI datacenter boom

Energy

Tech giants need 24/7 carbon-free baseload power for AI datacenters. SMRs offer 50-300MW units with faster deployment than traditional nuclear. Microsoft, Google, and Amazon have signed deals for 5+ GW.

Signal Strength

Moderate

Bull Case

+
Microsoft 20-year PPA with Constellation to restart Three Mile Island - first of many deals
Microsoft Sustainability Report 2024
+
NRC approved first SMR design in 2024, 3 more expected by 2026
US Nuclear Regulatory Commission
+
Datacenters need 50GW+ new power by 2030, solar/wind cannot meet 24/7 demand
Goldman Sachs: AI and the Datacenter Power Crisis

Bear Case

-
No commercial SMR operating in US yet - technology risk remains high
MIT Technology Review: The SMR Challenge
-
Capital costs 2-3x higher per MW than natural gas, limiting adoption
Lazard Levelized Cost of Energy 2024
-
Public opposition and permitting delays could push timelines to 2030+
Nuclear Energy Institute Survey

Related Companies

CEG

Constellation Energy

$75B

Largest US nuclear operator, Microsoft datacenter deals

OKLO

Oklo Inc.

$3B

Pure-play SMR developer backed by Sam Altman

SMR

NuScale Power

$800M

First NRC-approved SMR design, 2029 deployment target

BWX

BWX Technologies

$9B

Nuclear components and fuel supplier for SMRs

Key Catalysts

Mar 20, 2025

Constellation Three Mile Island restart timeline and cost update

May 1, 2025

Amazon nuclear datacenter partnership announcement expected

Sep 30, 2025

NuScale first commercial project construction start

Disclaimer: For informational purposes only. Not investment advice. ThesisSwipe provides research and analysis but does not recommend any specific investment decisions. Always conduct your own research and consult with a qualified financial advisor before investing.

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