Small Modular Reactors (SMRs) Will Power Artificial Intelligence (AI)

A Small Modular Reactor (SMR) is a type of nuclear reactor, intended for electric power generation, that is much smaller, less complex and much less expensive to construct than traditional nuclear power plants (which can cost tens of billions of dollars). Some developers intend for the components to be constructed in pieces in factories and then assembled on-site. Thus, the same design could be used repeatedly, which is a key to successful economics for this strategy. Extremely high safety standards for the reactors are stressed. SMRs could be located reasonably close to the industrial areas or communities that need electric power and could be assembled and put into operation relatively quickly. Several firms are pursuing these mini-reactor designs, including NuScale Power. It has been in discussion with several potential customers and received approval from the U.S. Nuclear Regulatory Commission in 2023 of the design of its 50-megawatt reactor. The first plant to use this reactor is not expected until the early 2030s. Engineering giant Fluor Corporation is the major shareholder of Nuscale. Another SMR startup is Last Energy (www.lastenergy.com). It was planning a $391 million micro nuclear project in Wales as of late 2024.

Elsewhere, the GE Hitachi Nuclear Energy company (www.gevernova.com/nuclear) is an SMR contender. It may construct units in Poland. China has two SMR units in operation at one of its nuclear energy sites. Many observers in the U.S. feel that America has the technology and engineering lead in the SMR field and see this sector as a way for America to greatly boost exports of advanced nuclear systems and related services.

Other Advanced Technologies: Yet another alternative to traditional nuclear reactors is thorium liquid fuel reactors, which are fueled by molten fluoride salt containing thorium. Thorium is far more abundant than uranium and it creates uranium 223 continuously, resulting in approximately 90 times as much energy from the same quantity of uranium. In addition, it generates less waste, which itself has a much shorter half-life than uranium. India has significant reserves of thorium (about 319,999 tons or 13% of the world’s total) and has been working on the technology since the 1950s. Since then, about one ton of thorium oxide fuel has been irradiated experimentally in pressurized heavy water reactors and has been reprocessed, according to the Bhabha Atomic Research Centre (BARC). A reprocessing center for thorium fuels is being built at Kalpakkam.

In the EU, a partnership of laboratories and universities are researching a safer nuclear technology based on the “molten salt fast reactor.” The technology is based on blending molten salt with nuclear fuel and can work with either uranium-based fuels or thorium. The reactors don’t require large containment structures and use less fuel, making them viable for mass production in factories and potentially combined in arrays to create larger power plants. The end goal is a cleaner, safer and more cost-effective reactor. China is also actively researching a liquid-thorium fuel reactor.

The advent of artificial intelligence (AI) brings with it skyrocketing demands for power. Data centers that house and operate AI systems use enormous amounts of electricity. Analysts estimate that AI data centers and transmission networks account for 3% of global energy consumption as of early 2024 and estimate that it could grow from 460 terawatt-hours (TWh) in 2022 to 1,000 TWh in 2026. The Electric Power Research Institute estimates that AI data centers could use as much as 8% to 10% of U.S. electricity by 2030.

To meet this demand, AI-focused companies (including Alphabet and Amazon) are signing agreements to purchase power from SMRs. In October 2024, Alphabet agreed to buy power from Kairos Power, enabling Kairos to bring its first SMR online by 2030. Amazon, along with additional investors, has pledged $500 million to X-energy to fund a new SMR design and licensing as well as the initial phase of its TRISO-X fuel facility in Oakridge, Tennessee.

Established nuclear power companies such as NuScale, GE Hitachi, Holtec and Westhinghouse are also embracing SMR concepts. They are planning smaller versions of traditional nuclear plants (which utilize low-enriched uranium fuel stocks and water as a coolant) with some modifications.

Meanwhile, Three Mile Island, the site of the worst nuclear power accident in the U.S., will reopen under an agreement between Constellation Energy and Microsoft. Constellation will restart the plant’s undamaged reactor (which has been closed since 2019) at a cost of about $1.6 billion with a restart date expected in 2028. Microsoft has entered into a 20-year power purchase agreement with Constellation, as Microsoft needs the power to fuel its soaring cloud computing and AI computing business.

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