E D I T O R ' S Q U E S T I O N
The digital economy runs on data and data runs on power. As artificial intelligence, highperformance computing, and global digitization accelerate, data centre energy demand is skyrocketing. But traditional power models are struggling to keep up, creating reliability concerns and sustainability bottlenecks. Small Modular Nuclear Reactors( SMRs) may be the breakthrough we need.
Unlike legacy nuclear, SMRs offer a rightsized, factory-built approach to carbonfree, weather-independent power. These reactors are capable of producing up to 300 MW and can be deployed faster and more flexibly than traditional plants, aligning well with the evolving footprint of hyperscale and regional data centers. Their potential lies not just in meeting the soaring energy demands of AI and digital infrastructure, but in doing so while advancing sustainability goals.
The question is do data centre operators in need of carbon free power today bet on SMR’ s or rely on utility operators to add capacity? Data centre operators are implementing‘ bridge’ power which is fossil fuel based, usually natural gas turbines with the intention of replacing it in the future with a carbonfree source. Environmental regulations are now loosening, even in Europe, opening the door for temporary use of fossil fuel-based solutions but why go through this step? Governments are doing what they can to‘ fast track’ SMR’ s which offer secure baseload power, a compact land footprint and emissions below 50 gCO₂ / kWh which is better than gas, coal and even many renewables, plus they don’ t rely on distribution grids to be built.
While SMRs are speculative, tech legacy nuclear is not. Countries like France and Japan are rebooting nuclear investment. In fact, the first nuclear-powered data center is already online in Pennsylvania, with others under development in Connecticut and across Europe.
The hurdles for SMR’ s are public perception and actual pilot unit deployments and testing. Many companies are rushing to get test units in the field and prove out their operation. Regarding waste management, most SMR’ s will operate on previously used uranium because they run on a lower concentration. However, the used uranium must be reconditioned and plants to do this need to be constructed for SMR’ s to be deployed at scale.
For data centres, the benefits are compelling. SMRs align well with 24 / 7 load profiles, offering consistent power with refuelling cycles measured in years, not days. They can operate independently or grid-connected, giving developers flexibility in siting and resilience planning. As part of a hybrid model integrated with renewables and storage, they can provide a stable foundation for intelligent energy management.
This isn’ t about replacing renewables. It’ s about complementing them with firm, clean power that matches the scale and urgency of the digital age. At Schneider Electric, we have partnered with a Canadian developer of 190MWe Integral Molten Salt Reactors( IMSR), Terrestrial Energy, to advance the deployment of its next-generation nuclear power plants. We see modular nuclear as a potential cornerstone in the nextgeneration energy stack, enabling data centers to meet their energy demands for the future and become truly sustainable.
We stand at a critical inflection point. To meet both the demand for digital growth and the imperative of decarbonization, data centre leaders must embrace innovation across infrastructure, operations, and energy sourcing. SMRs won’ t solve every challenge, but they could power the future of digital infrastructure.
STEVEN CARLINI, SCHNEIDER ELECTRIC’ S CHIEF ADVOCATE OF DATA CENTERS AND AI
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