Data Centers Embrace Nuclear Power to Fuel AI Workloads

Small modular reactors could enable data centers to generate their own electricity and break free from the grid

Mar. 12, 2026 at 8:48pm

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Data centers are increasingly turning to small modular nuclear reactors (SMRs) to power their AI-driven workloads, as the U.S. power grid struggles to keep up with the surging electricity demands of the tech industry. SMRs can be deployed on-site, eliminating the need to wait years for grid upgrades, and providing a reliable, carbon-free source of power. While regulatory hurdles and public perception issues remain, major tech companies are already investing in SMR projects, signaling that the technology is viable and bankable.

Why it matters

Data centers are now the fastest-growing segment of electricity demand in the U.S., driven by the exponential growth of AI workloads. However, the aging power grid was not built to handle this level of concentrated, high-powered computing load. SMRs offer a solution that can be deployed alongside data centers, providing a reliable, on-site source of electricity without the delays and constraints of the grid.

The details

SMRs can generate 50-300 MW of power, enough to supply several data centers, and additional units can be added as demand grows. This modular approach contrasts with traditional large-scale nuclear plants that take 10-12 years to build and cost billions. SMRs are also more compact, requiring only a few dozen acres of land. While regulatory hurdles and public perception issues remain, major tech companies like Amazon, Google, Microsoft, and Meta are already investing in SMR projects, signaling confidence in the technology.

  • In 2023, U.S. data center electricity consumption reached 176 terawatt-hours (TWh).
  • By 2028, data center electricity consumption could exceed 580 TWh, accounting for up to 12% of national demand.
  • The NuScale-UAMPS Carbon Free Power Project received support but was canceled in 2023 due to cost overruns and subscriber withdrawals.
  • U.S. government agencies and private investors have committed nearly $9 billion to SMR-related development.

The players

Flexential

A data center operator and infrastructure provider.

Oklo

A company developing the Aurora microreactor at the Idaho National Laboratory.

TerraPower

A company building the Natrium nuclear plant in Wyoming.

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What they’re saying

“Once a data center runs continuously on an SMR, skepticism will collapse, and every operator still negotiating interconnection timelines will realize they're focused on the wrong problem.”

— Ryan Mallory, CEO of Flexential (powermag.com)

What’s next

The first SMR-powered data centers are expected to come online later this decade or in the early 2030s, which could drive broader market confidence and adoption of the technology.

The takeaway

SMRs offer a viable solution to the growing power demands of data centers and AI workloads, providing a reliable, on-site source of electricity that can be deployed in modular fashion to match the needs of the facility. While regulatory and public perception hurdles remain, the involvement of major tech companies signals that SMRs are a bankable and scalable option for the future of data infrastructure.