E D I T O R ' S Q U E S T I O N

Small Modular Reactors( SMRs), a new class of compact nuclear reactors, represent a promising – yet controversial – solution to this challenge.

While their deployment is still nascent, I believe SMRs have a compelling role to play in powering future data centres, particularly those operated by hyperscale providers with net-zero commitments.

However, adoption will hinge on overcoming regulatory hurdles, public perception and cost competitiveness.

The primary advantage of SMRs lies in their ability to provide constant, highdensity baseload power with zero carbon emissions.

Unlike solar or wind, which are intermittent and require extensive battery storage, SMRs can deliver uninterrupted electricity, an essential requirement for data centres that demand near-total uptime.

Companies like Microsoft and Google have begun investing in advanced nuclear technologies, recognising that traditional renewables may not scale quickly or reliably enough to meet AI-driven energy demand. Microsoft’ s partnership with Terra Praxis to explore nuclear options for powering its infrastructure underscores the seriousness of this shift.

Furthermore, SMRs offer geographic flexibility. Their compact design means they can be sited near or even within data centre campuses, reducing reliance on strained national grids and enhancing energy security.

In regions where land and grid capacity are constrained – such as parts of the UK or Japan – this decentralised approach could be transformational.

However, there are valid concerns. First, the economics of SMRs are not yet proven. Although they promise lower capital costs and faster deployment than traditional nuclear plants, commercial models remain largely theoretical.

Additionally, safety and waste management continue to provoke public opposition. Despite their passive safety systems, SMRs still rely on fission technology, which carries stigma in the wake of past nuclear accidents.

Legislation will play a critical role in determining SMR viability. In the US, the Nuclear Regulatory Commission has begun fast-tracking approvals for new designs like NuScale and Oklo, signalling a favourable regulatory environment.

Canada is similarly supportive, with Ontario Power Generation leading a major SMR initiative.

In the UK, Rolls-Royce’ s SMR programme has strong government backing and the Technology and Construction Court is streamlining planning processes for energy hubs.

Conversely, countries like Germany and Austria, which have committed to nuclear phase-outs, are unlikely to support SMRs near digital infrastructure.

In summary, SMRs could become a cornerstone of sustainable data centre development in the coming decades – but only where regulation, innovation, and public sentiment align.

Early adoption is most likely in nuclearprogressive countries such as the US., UK and Canada, particularly for mission-critical campuses where power resilience is paramount.

With AI workloads set to multiply energy consumption, ignoring the potential of SMRs risks leaving a critical gap in our decarbonisation strategy.

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