As artificial intelligence keeps growing, so does its hunger for power. U.S. data centers used 176 TWh of electricity in 2023. By 2028, that number’s expected to hit 580 TWh — about 12% of the entire country’s power demand. Demand is rising so fast that experts now see projected shortfalls in the tens of GW ahead. Standard power grids can’t keep up, and connecting to them can take up to a decade.
AI’s power demand is outpacing the grid — and a 49 GW shortfall is already on the horizon.
That’s where small modular reactors, or SMRs, come in. These compact nuclear units generate between 50 and 300 MW each. They can be built on-site, avoiding grid delays. They need relatively small land footprints compared to traditional power plants. Factory construction cuts build time to just 24 to 36 months. Unlike solar or wind, they produce clean power around the clock.
Tech companies are moving fast. Amazon has partnered with X-Energy to develop Xe-100 SMRs. It’s also building the Cascade Nuclear Energy Center in Washington state, targeting 960 MW. Amazon is reportedly aiming for multi-GW SMR capacity long-term and has made a significant investment in X-Energy. It also reportedly acquired data centers near nuclear plants in Pennsylvania. The Cascade project will be developed in three phases, each adding roughly 320 megawatts of capacity to support Amazon’s growing data center needs.
Microsoft’s restarting Three Mile Island’s Unit-1, with power expected by 2027. Google’s working with Kairos Power on a molten-salt reactor in Tennessee that could scale to 500 MW. Oracle’s planning multiple SMRs for future data centers. AWS signed a 17-year deal for 1.92 GW from the Susquehanna nuclear plant.
Meta’s also in the mix. It’s secured deals for over 6 GW of nuclear power with three firms. One deal with Oklo covers 1.2 GW using 16 reactors in Ohio, each producing 75 MW. Phase one delivers 150 MW by 2030.
Regulators are responding too. The NRC now has an 18-month cap on reviewing new reactor applications. NuScale already holds full NRC certification for its 77 MWe design. The SMR market is projected to grow into the billions by the early 2030s. U.S. government agencies and private investors have reportedly committed billions to SMR-related development, signaling strong confidence in the technology’s future.
References
- https://qazinform.com/news/amazon-eyes-nuclear-future-for-data-centers-with-x-energy-partnership-f250eb
- https://nationaltoday.com/us/ga/atlanta/news/2026/03/12/data-centers-embrace-nuclear-power-to-fuel-ai-workloads/
- https://www.irecruit.co/insights/smr-nuclear-powered-data-center-developments
- https://techcrunch.com/2026/01/09/meta-signs-deals-with-three-nuclear-companies-for-6-plus-gw-of-power/
