Tech Giants Bet Big on Small Nuclear Reactors

The nuclear energy market has seen a resurgence in recent years, driven by the expansion of cloud infrastructure and AI markets. This shift is generating strong tailwinds for producers of small modular reactors (SMRs). Many top tech companies, including Alphabet's Google, Amazon, and Oracle, have signed framework, financing, and deployment deals to expand their SMR capacity over the next two decades.

SMRs are compact nuclear reactors designed to produce up to 300 MWe per unit. By comparison, conventional nuclear power plants typically generate more than 1,000 MWe. Their smaller design allows them to be deployed in remote areas with challenging terrain.

The market's demand for nuclear power rose again after the 2011 Fukushima disaster, driven by new decarbonization initiatives and safer nuclear technologies. Companies such as NuScale, Oklo, and GE Vernova are producing different types of SMRs and microreactors.