Authors: Benjamin Henezi, Process Engineer and Mitchell Valic, Process Engineer, Fluor Canada Ltd.
In today’s digital age, data centres are the powerful engines driving the computational workload that keep modern society running. From processing financial transactions, to supporting healthcare systems and ensuring the continuous operation of the internet, these facilities require vast amounts of reliable power to function effectively.
Since the launch of publicly accessible generative AI chatbots like OpenAI’s ChatGPT, Microsoft’s Copilot, and Google’s Gemini, there has been a surge in demand for data centre leasing. This rapid growth has exacerbated an already escalating need for data centre space, largely driven by the rise of cloud services such as Amazon Web Services and Microsoft Azure. Data centres house networks of interconnected servers, linked through cables and switches, that enable the processing, storage and distribution of data.
According to McKinsey & Company (2024), the demand for new data centres has grown so rapidly that by 2030, data centre power loads are projected to account for 35% of all new net power demand added to the grid in the United States (How data centers and the energy sector can sate AI’s hunger for power, 2024). This increased demand translates to 7.5% of the U.S.’s total electricity usage. With newly constructed hyperscale data centres requiring power capacities of at least 100 MW, the need for clean, reliable power to support the forecasted demand is more critical than ever (Data center power consumption – statistics & facts, 2025). Note that commonly used renewable energy sources such as solar, wind, and hydro are either hindered by low energy outputs, largely weather/location dependent, and/or have complex challenges that come with storing energy for times of peak power demand.
An appealing solution to replace the prominent renewable energy sources, and prevent the use of CO2 emitting fossil fuels, is the deployment of small modular reactors (SMRs). SMRs are nuclear reactors that can provide scalable, consistent, clean and high density (W/m2) power. The flexibility of SMRs allows developers to utilize a common technology to meet their needs, and tailor energy output by adding or removing modules, making them highly adaptable to varying power demands. Standardizing the technology used across multiple facilities can streamline operations and improve efficiency of the centres. Additionally, SMRs can be co-located with data centres, reducing the costs associated with constructing power transmission and grid infrastructure. This approach could also increase reliability by removing dependence on the grid as well as possible curtailments induced during a high-demand, low-grid availability event.
Developers are already seeing the tremendous potential of integrating SMRs with their future data centre projects. Over the past year, several notable partnerships were announced between major generative AI developers and SMR companies, three of which include:
These announcements highlight the growing interest in leveraging SMRs to provide sustainable and reliable power solutions for high power demand applications.
The three SMR technologies identified above can provide anywhere from 77 to 140 MWe of power output depending on the reactor design chosen. This could be further increased by adding additional modules to meet the >100MWe power demand required for data centres. A summary of the major technical specifications for each SMR design is shown in Table 1 below. All three options as they are advertised would be suitable for data centre applications.
Table 1: SMR Technologies Technical Specification Summary.
North American nuclear regulators have only approved light-water and heavy-water reactor designs for commercial operation. Review and approval of new reactors using other types of coolants and moderators will be a significant technical challenge for these regulators. As such, companies looking for a streamlined licensing process may opt for a technology that is further along in the regulatory approval process. A more mature design could begin construction and production earlier than an alternative SMR technology that is in the early stages of the regulatory approval process.
Of all the SMR designs currently in development, NuScale is the only SMR design which has two power modules certified by the U.S. Nuclear Regulatory commission (NRC) for use in the United States, making it only one of seven reactors approved (NRC Approves NuScale Power’s Uprated Small Modular Reactor Design, 2025). By issuing a design certification, the NRC approves a nuclear power plant design, independent of an application, to construct or operate a plant. This NRC ruling makes the NuScale reactor an attractive option for companies looking for immediate implementation of nuclear energy for power generation.
Even though substantial progress has been made towards SMR deployment and commercialization, many SMR designs are still theoretical and do not have a full-scale reactor in operation. For example, the Xe-100 and KP-FHR designs have only just submitted construction permits to the NRC for construction approval for first-of-a-kind reactors/facilities (Dow and X-energy Submit Construction Permit Application to the U.S. Nuclear Regulatory Commission for Proposed Advanced Nuclear Project in Texas, 2025), (Hermes 2 – Kairos Application, 2025).
Final Thoughts
Overall, new SMR technology is an innovative and ideal power source for data centres due to its ability to generate dense, reliable and low-carbon energy. SMRs offer a scalable and efficient solution that satisfies the high energy demand projected for new data centre developments while minimizing environmental impact. Combined with their advanced passive safety features and shorter deployment times (once certified), they are an attractive alternative to traditional power sources. As data centre development grows and advanced SMRs are implemented, SMRs then present a promising opportunity for other industries seeking to achieve sustainable and operational resilience.
First-of-a-kind technology requires additional front-end work to de-risk the project and ensure that each future phase of the project runs smoothly with limited recycling and project delays. It is always better to address potential obstacles early in the project, when investment and risk are lower. It requires an experienced engineering team to develop a fit-for-purpose solution, quality estimates, and enhanced value for the owner. Fluor brings the necessary expertise and knowledgeable personnel to meet project goals and achieve successful execution from feasibility studies through to final phases of the project.
Amazon Invests in X-energy to Support Advanced Small Modular Nuclear Reactors and Expand Carbon-Free Power. (2024, October 16). Retrieved from X-energy: https://x-energy.com/media/news-releases/amazon-invests-in-x-energy-to-support-advanced-small-modular-nuclear-reactors-and-expand-carbon-free-power
Data center power consumption – statistics & facts. (2025, August 11). Retrieved from statista: https://www.statista.com/topics/13055/data-center-power/#topicOverview
Dow and X-energy Submit Construction Permit Application to the U.S. Nuclear Regulatory Commission for Proposed Advanced Nuclear Project in Texas. (2025, March 31). Retrieved from X-energy: https://x-energy.com/media/news-releases/dow-and-x-energy-submit-construction-permit-application-to-the-us-nuclear-regulatory-commission-for-proposed-advanced-nuclear-project-in-texas
Google and Kairos Power Partner to Deploy 500 MW of Clean Electricity Generation. (2024, October 14). Retrieved from kairospower: https://kairospower.com/external_updates/google-and-kairos-power-partner-to-deploy-500-mw-of-clean-electricity-generation/
Hermes 2 – Kairos Application. (2025, March 03). Retrieved from NRC: https://www.nrc.gov/reactors/non-power/new-facility-licensing/hermes2-kairos
How data centers and the energy sector can sate AI’s hunger for power. (2024, September 17). Retrieved from McKinsey: https://www.mckinsey.com/industries/private-capital/our-insights/how-data-centers-and-the-energy-sector-can-sate-ais-hunger-for-power
NRC Approves NuScale Power’s Uprated Small Modular Reactor Design. (2025, May 30). Retrieved from U.S. Department of Energy: https://www.energy.gov/ne/articles/nrc-approves-nuscale-powers-uprated-small-modular-reactor-design
Standard Power Chooses NuScale’s Approved SMR Technology and ENTRA1 Energy to Energize Data Centers. (2023, October 6). Retrieved from NUSCALE: https://www.nuscalepower.com/press-releases/2023/standard-power-chooses-nuscales-approved-smr-technology-and-entra1-energy-to-energize-data-centers