Why is the U.S. now betting on small modular reactors (SMRs) for nuclear power instead of green energy sources like solar and wind?

Data centers in North America have enormous electricity demands—'the end point of computing power is electricity.' For example, a data center running GPT-4–level AI models may require 100–300 megawatts (MW) of power. Assuming 200 MW as a benchmark, and each SMR delivering ~100 MW, only two SMRs would suffice—so why not? In China, the power supply infrastructure is relatively mature. The prevailing strategy is 'eastern data, western computing'—leveraging abundant hydropower in Southwest China and photovoltaic power in Northwest China, where electricity prices are also low. In contrast, the U.S. lacks such geographic advantages. Many green data centers are instead located in Arizona, where solar PV costs are comparatively lower—spurring interest in SMR-powered facilities. Moreover, SMRs can connect directly to existing grids: these reactors are sited near pre-existing grid interconnection infrastructure, avoiding lengthy grid-access permitting processes—a major advantage for operators concerned about grid reliability and the massive new loads imposed by large-scale data centers. I have not yet identified any Chinese companies actively pursuing SMR development; it appears less aligned with China’s current national conditions. By contrast, leading SMR developers in North America include Kairos Power (partnering with Google), Oklo (backed by OpenAI), Dominion Energy (collaborating with AWS), and Constellation Energy (partnering with Microsoft). North America offers policy support for nuclear power as clean energy, and corporate energy self-sufficiency and carbon neutrality have become integral to corporate branding—especially among capital-intensive tech firms. Here’s a snapshot of North America’s nuclear developments in 2024: 2024-04-29 Southern Company’s Georgia Power announces commercial operation of Vogtle Unit 4; 2024-07-09 President Biden signs the ADVANCE Act to support advanced reactor development; 2024-07-10 Dominion Energy announces feasibility assessment for deploying SMRs at its North Anna nuclear plant; 2024-09-20 Constellation Energy announces plans—under its power supply agreement with Microsoft—to restart Three Mile Island Unit 1; 2024-10-14 Google and Kairos Power agree to deploy a 500-MWe advanced nuclear project starting in 2030; 2024-10-16 Amazon signs SMR development agreements with X-energy, Dominion Energy, and Energy Northwest; 2024-11-14 Appalachian Power identifies potential SMR sites in Virginia; 2024-11-20 The U.S. Nuclear Regulatory Commission (NRC) approves issuing Kairos Power’s construction license for the Hermes-2 test reactor; 2024-12-03 Meta announces plans to seek up to 4 GWe of nuclear generation capacity to power its AI initiatives. Recently, the U.S. Department of Energy (DOE) announced $900 million in funding to support next-generation nuclear technology development.

The largest nuclear energy agreement in tech history! Why has Google set its sights on aging nuclear power plants?

Global Zero Carbon The 'New Youth' of Carbon Neutrality Google Blog Summary: Google has secured a 3.6-gigawatt nuclear power deal—the 'emergency prescription' for America’s electricity-short grid. As AI competition enters a new phase defined by 'racing for computing power and electricity,' U.S. tech giants are shifting their energy strategies from competing for existing power resources toward directly investing in—and even creating—new generation capacity. → This is Global Zero Carbon’s 2,167th original article. As the AI race advances into a new stage centered on computing power and electricity, U.S. tech giants are increasingly turning to nuclear energy. This time, Google has chosen a pragmatically realistic path: rather than building reactors from scratch, it is leveraging technological upgrades to boost output from existing nuclear plants. On October 6, 2026, Google and Constellation Energy—the largest U.S. nuclear operator—announced a long-term energy partnership covering a total of 3.59 gigawatts of electricity supply. Media outlets dubbed it 'the largest tech–energy agreement to date.' Structurally, this nuclear procurement contract comprises two components. The first is a 15-year agreement for 2,700 MW of power drawn from Constellation’s existing generation assets within the PJM Interconnection region. The second component—drawing industry attention—is a 20-year agreement to procure 890 MW of *newly added* nuclear generation capacity. This additional power will be generated through 'Nuclear Uprates'—upgrades to existing nuclear units. The newly added capacity will feed into the PJM grid, effectively adding the output of an entire large-scale nuclear reactor to the U.S. grid. Constellation plans to invest over $4.3 billion to modernize six nuclear plants across Illinois, Pennsylvania, and New Jersey—totaling 11 reactor units—by enhancing thermal and electrical efficiency to unlock new generation capacity. The first round of power-upgrade projects is expected to enter service in 2028, with Google anticipating full deployment of the 890 MW incremental capacity by the end of 2032. Following the announcement, Constellation’s stock rose more than 12%. In this collaboration, Google is not merely a power buyer—it is also positioning itself as an AI technology supplier to the nuclear industry. The two parties plan to expand technical cooperation further, with Constellation deploying Google Cloud and Gemini Enterprise across applications including nuclear plant upgrade planning, equipment operational optimization, and infrastructure protection. Notably, this 'largest-ever' partnership signals a pivotal shift: AI giants’ energy strategies are evolving—from competing for existing electricity resources toward directly investing in and creating new generation capacity. Constellation’s partnership with Google marks the second such deal announced recently. Just one week earlier, Amazon reached an agreement with Constellation to add 190 MW of capacity at Calvert Cliffs—the sole nuclear plant in Maryland. This market signal also lifted shares of other nuclear operators with similar upgrade potential: Vistra and Talen Energy both rose over 9% on October 6, while uranium enrichment firm Centrus gained over 7%.

US Offers Constellation $5 Billion Financing to Spur Nuclear Modernization

1 day ago

The US government offers Constellation Energy up to $5 billion to upgrade nuclear reactors across three states. This initiative aims to boost electricity supply for data centers and support grid reliability under President Trump's nuclear renaissance plan.

bloomberg

2026-10-27

US Offers Constellation $5 Billion Financing to Spur Nuclear Modernization

US Offers Constellation $5 Billion Financing to Spur Nuclear Modernization

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