Trying to get away from gas turbines, data centers place their hopes on SMRs


· 2 min read
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🗞️ Driving the news: US data-centre developers are increasingly looking to small modular reactors as a potential alternative to gas-fired generation, attracted by their ability to provide round-the-clock, low-carbon power close to rapidly growing computing loads
🔭 The context: Small modular reactors are designed to generate roughly 70 to 350MW, compared with around 1,000MW for conventional large nuclear reactors
• The US has 22 SMR designs under development, but only two have received Nuclear Regulatory Commission approval and no commercial SMR is yet operating in the country
• Developers favour co-location with data centres because it could reduce the need for additional transmission infrastructure while supplying firm electricity directly alongside large computing facilities
🌍 Why it matters: Surging AI electricity demand is pushing data centres to secure reliable power while gas turbines face growing scrutiny over emissions, air pollution and local infrastructure impacts
• SMRs could offer low-carbon, high-reliability generation with a relatively small footprint, but questions remain over costs, nuclear waste, supply chains and whether projects can be deployed quickly enough to address near-term power demand
• Critics also warn that commercial pressure to accelerate deployment should not weaken nuclear safety and regulatory standards
⏭️ What’s next: States and technology companies are likely to continue backing advanced nuclear projects, but meaningful SMR deployment will depend on manufacturing capacity, regulatory approvals, financing and whether developers can prove their designs commercially viable
📈 One stat: The US has 22 SMR designs under development, yet as of August 2026 there are no fully deployed commercial SMRs operating in the country
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