The world is witnessing numerous geopolitical tensions, driven by the increasing demand for energy due to the reliance of technology companies on massive data centers that consume vast amounts of electricity, the rise of electric vehicles, cryptocurrencies, the expansion of artificial intelligence, and more. As countries strive to achieve energy security while protecting the environment from climate change and aiming for net-zero emissions by 2050, many companies are turning to invest in small nuclear reactors, including Microsoft, Amazon, Apple, Alphabet (owner of Google), Meta, and others.
Promising Technology:
Tech companies are already investing in both renewable and non-renewable energy sources. However, with the proliferation of data centers and their rising energy consumption—which has led to a significant increase in carbon emissions (for instance, Google’s carbon emissions surged by 48% over five years due to artificial intelligence)—and the projected continuous rise in energy demand, global electricity demand is expected to increase by 25 to 30% by 2030. Additionally, global data centers are forecasted to consume nearly 857 terawatt-hours annually by 2028, almost double the amount used in 2023; this has prompted technology firms to invest in small nuclear reactors.
Small Modular Reactors (SMRs) are advanced reactors with a capacity of around 300 megawatts per unit, or about one-third of the energy produced by traditional nuclear reactors, according to the International Energy Agency. The Academician Lomonosov floating nuclear power plant in Russia was the world’s first floating nuclear power station, commencing commercial operation in 2020 and consisting of two small nuclear reactors, each with a capacity of 35 megawatts. More small nuclear reactors are currently under construction in Argentina, Russia, China, Canada, South Korea, and the USA.
The significance of SMRs lies in their ability to provide low-carbon clean energy; that is, sustainable energy. Key characteristics of small nuclear reactors include their compact size (allowing easy transportation by trucks, rail cars, ships, or planes), lower costs, increased safety, better efficiency in energy generation that can flexibly meet variable demand, and easier local integration, enabling their gradual and rapid deployment into existing power infrastructures.
Moreover, their designs are less complex, resulting in faster construction times, and they require fuel replenishment less frequently—ranging from every 3 to 7 years—compared to every year or two in traditional plants. Some are even designed to operate for up to 30 years without refueling, and they do not require substantial investments, making them economically viable; the estimated total cost for acquiring and operating a small reactor may not exceed $100 million, while traditional nuclear reactors can cost billions.
Thus, it can be concluded that small nuclear reactors serve as a suitable source for electricity generation, with many potential applications including but not limited to desalination, heavy industries (like steel), hydrogen production, and providing energy for military facilities. Consequently, over 70 commercial designs for small reactors are being developed worldwide.
International Competition:
Goal 7 of the Sustainable Development Goals, ensuring affordable energy access for all, represents a critical aim pursued by countries globally. However, numerous challenges hinder energy accessibility, especially in remote and rural regions; thus, countries and companies have begun seeking clean and innovative solutions through increased use of small nuclear reactors in conjunction with renewable energy sources. Small nuclear reactors and nuclear power plants offer unique characteristics in terms of efficiency, economics, and flexibility.
Small reactors provide controllable energy outputs, unlike variable renewable energy sources which depend on weather and time. They can be coupled with renewable energy sources to enhance efficiency within a hybrid energy system. Therefore, the attributes of small nuclear reactors empower them to play a crucial role in the transition to clean energy and advance sustainable development goals.
Leading countries in the field of small nuclear reactors include the United States, Russia, China, the United Kingdom, and Europe, which established the “European Modular Reactor Alliance” to support the construction of small reactors.
In the United States, NuScale Power was the first company to receive design approval for a small nuclear reactor from the U.S. Nuclear Regulatory Commission. Additionally, Terrapower in Wyoming, Kairos Power in Tennessee, and X-energy in Texas are all developing small nuclear reactors.
In Russia, Rosatom is among the leaders in the global small and medium reactor market and has developed the Russian-made RITM reactor. France is also working on developing SMRs under the Nuward project to offer advanced nuclear energy solutions for Europe.
Tech companies are competing to invest in this sector; for instance, Amazon invested approximately £380 million in the Xe-100 reactor from X-energy in 2024 (with a total capacity of up to 5 gigawatts by 2039). Additionally, Google purchased about 6 to 7 SMR units with a total capacity of approximately 500 megawatts.
Potential Impacts:
- Positive Impacts: Small nuclear reactors are expected to significantly contribute to energy security in many countries, especially in Europe, which has faced challenges due to the Russia-Ukraine war. There is also an anticipated strengthening of European-Gulf cooperation in nuclear hydrogen production and the transfer of European nuclear expertise to the Gulf. This opens opportunities for Gulf investments in European nuclear projects, particularly through sovereign wealth funds seeking to diversify investments away from oil for stable, long-term returns.
Moreover, there are likely to be increased European efforts to expand small nuclear reactors, especially after the European Commission included the “European Industrial Alliance for Small Modular Reactors” in a formal framework in February 2024, successfully integrating nuclear energy into the European renewable energy directives and classifying nuclear hydrogen as a clean energy source.
- Negative Impacts: Challenges related to small nuclear reactors include security and risk issues, such as cybersecurity threats and physical risks, as well as economic, regulatory, and social obstacles, such as high upfront costs for design and development, regulatory and bureaucratic constraints, especially concerning the transfer of nuclear technology between countries, local community resistance due to concerns over nuclear accidents or waste, and the availability of specialized human expertise.
Oil-producing nations may also be affected by a decrease in dependence on oil with the shift toward increased reliance on nuclear energy.
Future Pathways:
The world will see a growing demand for small nuclear reactors, marking the beginning of a new era characterized by higher energy consumption from data centers, which are essential infrastructure for the digital economy reliant on artificial intelligence. The International Energy Agency predicts that electricity consumption in technology companies and data centers (the number of which exceeds 11,000 globally) will surpass the consumption of some countries.
Therefore, it is likely that technology companies will continue their expansion into small modular reactors (SMRs) necessary to win the race in artificial intelligence while also meeting sustainable development goals. This will be accompanied by regulatory streamlining to simplify the licensing processes for building and operating small nuclear reactors, affirming that nuclear energy will become a key player in the energy sector in the medium and long term as companies in both the tech and nuclear sectors collaborate to drive innovation in small nuclear reactors.
In conclusion, the competition among tech companies in the field of small nuclear reactors reflects a strategic shift toward clean and sustainable energy sources. As electricity demand increases, small nuclear reactors (SMRs) are expected to become integral to future energy infrastructure, enhancing global energy security and reducing carbon emissions. Small nuclear reactors represent a promising future for clean and sustainable energy. However, realizing their potential requires managing associated risks and challenges—specifically, implementing more advanced safety technologies and establishing stringent policies to ensure the safe and responsible use of this technology. Thus, it can be affirmed that this competitive trend will facilitate further advancements in technology, artificial intelligence, and sustainable development goals.
