AI Demand Fuels Nuclear Renaissance, But Regulatory Concerns Loom
A confluence of factors – surging demand for power from artificial intelligence data centers, advancements in small modular reactor (SMR) technology, and a streamlined regulatory process – is setting the stage for a potential resurgence of nuclear power in the United States. The shift comes after decades of stagnation for the nuclear sector, hampered by safety concerns, cost overruns, and competition from natural gas and renewable energy sources.
Meta’s recent partnership with TerraPower and Oklo to develop approximately 4 gigawatts of SMR projects marks a pivotal moment. The agreement, announced in January, aims to provide “clean, reliable energy” for Meta’s planned Prometheus AI mega campus in Ohio, and beyond. Analysts view this as a harbinger of further deals between Big Tech companies and nuclear developers.
“That was the first shot across the bow,” said Dan Ives, head of tech research for Wedbush Securities. “I would be shocked if every Big Tech company doesn’t make some play on nuclear in 2026, whether a strategic partnership or acquisitions.” Ives highlighted the rapid construction of new data centers, noting that there are currently more under construction than active facilities in the U.S., driving the need for substantial and reliable power sources.
From Stagnation to Innovation
The nuclear industry faced a prolonged period of limited growth following the accidents at Three Mile Island, Chernobyl, and Fukushima. The Vogtle project in Georgia, the only major U.S. Expansion in nearly 30 years, exemplified the challenges, ultimately costing over $35 billion and taking 15 years to complete – more than double the initial budget and timeline. This experience dampened appetite for further large-scale projects.
Chris Levesque, CEO of TerraPower, who previously worked at Westinghouse, observed a cultural shift within the industry. “The U.S. (nuclear) safety record has been so good, but it created a culture where you were almost punished if you innovated,” he said. “We were rewarded for doing everything the same way it was done last time, maybe 1% better. But don’t be a cowboy!” TerraPower, guided by Bill Gates, embraces a more experimental approach, asking “What does nature allow? What does science allow?”
Small Modular Reactors: A New Approach
SMRs offer a potentially transformative solution. These reactors can be built in as little as three years, significantly faster than the decade typically required for traditional large reactors. Their modular design allows for incremental expansion to meet growing energy demands, making them particularly attractive to “hyperscalers” – companies that build and operate large data centers.
TerraPower is currently constructing its first 345-megawatt SMR plant, the Kemmerer Power Station, in Wyoming, slated for completion in 2030. The company’s agreement with Meta involves two reactors coming online as early as 2032, with the option for six additional reactors, potentially totaling 2.8 gigawatts of capacity.
Oklo, founded in 2013, is also making strides. The company plans to begin construction on its first reactors this year in Ohio, near Meta’s future data center campus. The initial reactors are targeted to come online by 2030, with a planned capacity of 1.2 gigawatts by 2034. Oklo is also building a test reactor at the Department of Energy’s Idaho National Laboratory as part of a White House initiative.
Fueling the Future: Uranium and Recycling
The demand for enriched uranium, a critical component of nuclear fuel, is increasing. Currently, Russia dominates approximately half of the global uranium enrichment market. The U.S. Is working to bolster its domestic supply chains, focusing on both mining and processing. Oklo is also pursuing nuclear fuel recycling, aiming to reduce reliance on new uranium sources. The company estimates that recycling could extend the lifespan of U.S. Uranium reserves to over 150 years, as only about 5% of the energy is used in a typical reactor.
Oklo has secured a $1.7 billion investment to build a fuel recycling facility in Oak Ridge, Tennessee, expected to be operational by 2030. The company is even collaborating with Liberty Energy, previously an oil and gas services company led by Energy Secretary Chris Wright, to provide temporary gas-fired power to data centers while its SMRs are scaled up.
Regulatory Concerns and the Path Forward
The rapid push for nuclear expansion is not without its critics. The Trump administration’s efforts to expedite the regulatory process, shifting oversight from the Nuclear Regulatory Commission to the Department of Energy, have raised concerns about safety. While proponents argue that the changes eliminate unnecessary bureaucracy, organizations like the Union of Concerned Scientists (UCS) fear that safety standards are being compromised.
“The Energy Department has not only taken a sledgehammer to the basic principles that underlie effective nuclear regulation, but it has also done so in the shadows, keeping the public in the dark,” said Edwin Lyman, UCS director of nuclear power safety. “These longstanding principles were developed over the course of many decades and considered lessons learned from painful events such as the Chernobyl and Fukushima disasters.”
Despite these concerns, companies like Antares Nuclear and Natura Resources are progressing with their own SMR projects under the DOE’s reactor pilot program. Antares recently received preliminary safety approval for its Mark-0 reactor, slated to come online this summer in Idaho. Natura is developing a 100-megawatt reactor in West Texas to power oil and gas and water treatment facilities, and is also pursuing a project at Abilene Christian University.
Google and Amazon are also investing in SMR technology, with Kairos Power developing 500 megawatts of capacity for Google by 2035 and x-Energy planning to build 5 gigawatts of SMR power by 2039, including approximately 1 gigawatt in Washington state. Westinghouse is also building 10 pre-licensed AP1000 reactors, each with 1.1 gigawatts of capacity, by 2030.
“I’m not a fan of the small versus large debate,” said Jacob DeWitte, Oklo’s chairman and CEO. “Large plays an important role in certain areas. It faces a really difficult capital allocation challenge. Smaller reactors need fewer dollars, so they’re easier to find the capital, and then you build faster because they’re smaller. They can iterate more quickly, both on cost and time. That’s important because the learning cycles matter, and they compound.”
