Nuclear Energy Gains Interest
Governments and businesses worldwide are increasingly focusing on nuclear energy, especially due to the energy demands associated with artificial intelligence (AI).
Innovations in Nuclear Power
A notable advancement in the nuclear sector, especially regarding AI, is the development of small modular reactors (SMRs).
Understanding SMRs
SMRs operate similarly to larger reactors by utilizing the heat from uranium fission to create steam that drives turbines, albeit on a smaller scale. This design allows them to occupy considerably less space than traditional reactors.
Potential for Data Centers
The concept posits that placing an SMR near a cluster of data centers could provide a consistent power supply unaffected by price fluctuations in the local grid.
NuScale Power’s Market Position
Among the companies developing SMR technology, **NuScale Power** (NYSE: SMR) stands out. Currently trading under $20, it is viewed as a frontrunner in the race to deploy an SMR for practical use.
Challenges and Opportunities
NuScale has secured a $400 million grant from the Tennessee Valley Authority (TVA) to install 6 gigawatts of power from SMRs across its operational regions, with plans for commercial operations in the early 2030s. Each TVA plant will contain 12 NuScale modules, marking a significant step forward in SMR deployment.
Revenue Considerations
However, NuScale faces challenges in revenue consistency, largely reliant on investor funding and government contracts. Though it earned $63.1 million from an ongoing project in Romania, its revenue has fluctuated dramatically, highlighting its dependence on the completeness of such projects as it continues developing SMR technology.
