nuclear partnerships for data centers

Overview

Nuclear energy has emerged as the strategic solution to data centers’ insatiable power demands and carbon-free commitments. In 2024-2025, $12+ billion has been committed to data center-dedicated nuclear projects, representing the largest private investment in U.S. nuclear infrastructure since the 1980s.

Two Models Emerging:

1. Small Modular Reactors (SMRs): New construction, 50-300 MW units
2. Reactor Restarts: Bringing recently-closed nuclear plants back online

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Major Partnerships

Google-TVA-Kairos Power (Tennessee)

Announced: October 2025 Capacity: 50 MW (initial), expandable to 500 MW Technology: Kairos Power Hermes SMR (molten salt-cooled) Location: Oak Ridge, Tennessee area Timeline: First reactor operational by 2030

Significance:

• First hyperscaler-utility-vendor SMR partnership in U.S.
• Google’s carbon-free energy commitment (24/7 by 2030)
• TVA returning to nuclear construction after decades

Technical Innovation:

• Molten salt cooling: Higher efficiency than water-cooled
• Walk-away safe: Passive safety systems (no active cooling required)
• Modular construction: Factory-built, site-assembled
• Fuel flexibility: Can use HALEU (high-assay low-enriched uranium)

Development Milestones:

• 2025 Q4: NRC license application submission
• 2026-2028: NRC review process
• 2028: Construction commencement
• 2030: First unit operational
• 2032-2035: Expansion to 500 MW (10 units)

Google Data Center Integration:

• Location: Tennessee data center cluster (existing + planned)
• Dedicated offtake: 100% of power to Google facilities
• Grid backup: TVA grid provides redundancy
• Renewable complement: Solar + storage augmentation

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Microsoft-Constellation Three Mile Island Restart

Announced: September 2024 (advancing through 2025) Capacity: 835 MW (Unit 1) Location: Londonderry Township, Pennsylvania Timeline: Operational 2028

Why Three Mile Island?

• Recently closed (2019) - infrastructure intact
• Strong safety record since 1979 incident (Unit 1 unaffected)
• PJM interconnection - existing transmission
• Pennsylvania location - proximity to East Coast data centers

Restart Process:

• 2024: Constellation announces intent, Microsoft PPA signed
• 2025: NRC restart review initiated
  • Safety systems inspection
  • Equipment certification
  • Environmental review
• 2026-2027: Refurbishment work
  • Steam generators replacement
  • Control systems upgrade
  • Cooling systems restoration
• 2028: Operational restart

Microsoft Data Center Integration:

• Pennsylvania data center cluster: Multiple facilities powered
• Carbon-free goal: Eliminates need for renewable energy certificates (RECs)
• 24/7 matching: Nuclear provides constant baseload (vs. intermittent renewables)
• Grid independence: Reduces reliance on constrained PJM grid

Economic Impact:

• Jobs: 3,400 during refurbishment, 600 permanent operations
• Local economy: $3B economic impact over 20 years
• Tax revenue: $1B+ to Pennsylvania over PPA term

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Amazon-Energy Northwest (Washington)

Announced: October 2024 Capacity: 4 SMRs, 320 MW total (80 MW each) Technology: X-energy Xe-100 SMR (high temperature gas-cooled) Location: Near Columbia Generating Station, Washington Timeline: First unit 2029, full deployment 2032

Strategic Rationale:

• AWS US-West region: Proximity to Oregon/Washington data centers
• Baseload carbon-free: Complements existing hydropower (Columbia River)
• Scalability: Modular deployment (4 units initially, up to 12 potential)

X-energy Xe-100 Technology:

• TRISO fuel: Inherently safe (cannot melt down)
• High temperature: 750°C outlet temp (vs. 300°C light water reactors)
• Small footprint: 80 MW each, factory-assembled
• Passive cooling: No active systems required for shutdown

Deployment Plan:

• Phase 1 (2029): 2 units, 160 MW
• Phase 2 (2031): 2 additional units, 160 MW
• Phase 3 (2032+): Up to 8 more units (640 MW)

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Amazon-Dominion Energy (Virginia)

Announced: November 2024 Capacity: Exploring “multiple gigawatts” near existing nuclear plants Location: Louisa County, Virginia (near North Anna nuclear station) Timeline: Feasibility study 2025-2026

Focus:

• Data center cluster: Louisa County emerging as Virginia’s next major hub
• Existing infrastructure: Leverage North Anna transmission
• SMR deployment: Likely 6-10 SMR units (500-1000 MW total)

Status: Feasibility + site studies underway

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Pennsylvania Nuclear Corridor

Multiple projects exploring nuclear integration in Pennsylvania, creating a “nuclear corridor” for data centers.

Susquehanna Nuclear Station Proximity Projects

Homer City Energy Campus (4.5 GW planned):

• Location: 45 miles from Susquehanna nuclear plant
• Strategy: Grid connection to nuclear baseload
• Status: Planned, permitting stage

TECfusions Keystone Connect (3 GW):

• Location: Northeast Pennsylvania
• Nuclear proximity: Susquehanna + Limerick
• Status: Under construction

Project Jupiter (New Mexico) Nuclear Component

Planned Addition: 500 MW SMR Timeline: 2027-2030 feasibility, 2030+ deployment Technology: Vendor selection in progress (NuScale, X-energy, or Kairos finalists) Rationale: On-site baseload for AI training workloads

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Small Modular Reactor (SMR) Technology

Leading Vendors

1. NuScale Power

• Design: Light water SMR, 77 MW per module
• Status: First NRC design certification (January 2023)
• Projects: Utah UAMPS project (delayed), evaluating data center market
• Advantages: Proven light water technology, certified design
• Challenges: Higher cost than competitors, smaller capacity per unit

2. X-energy

• Design: Xe-100, high temperature gas-cooled, 80 MW
• Status: NRC design certification review underway
• Projects: Amazon-Energy Northwest (Washington)
• Advantages: TRISO fuel safety, high temperature efficiency
• Challenges: New fuel form factor (supply chain development)

3. Kairos Power

• Design: Hermes, molten salt-cooled, 50 MW (scalable)
• Status: NRC application submitted October 2025
• Projects: Google-TVA (Tennessee)
• Advantages: Highest temperature (efficiency), walk-away safety
• Challenges: Novel design (longer NRC review expected)

4. TerraPower (Bill Gates)

• Design: Natrium, sodium-cooled fast reactor, 345 MW
• Status: Demonstration project in Wyoming
• Projects: Not yet data center-specific, but evaluating
• Advantages: Large capacity per unit, molten salt energy storage integration
• Challenges: Sodium cooling complexity

SMR Economics

Capital Costs:

• Per unit: $400M - $1.2B (depending on design, 50-350 MW)
• Per kW: $5,000 - $7,000/kW (higher than conventional nuclear)
• Learning curve: Expected 30-40% cost reduction by 10th unit (factory production)

Operational Costs:

• Fuel: $15-20/MWh (vs. $40-60/MWh natural gas)
• O&M: $10-15/MWh
• Total LCOE: $60-80/MWh (first units), declining to $40-55/MWh (at scale)

Data Center Value Proposition:

• 24/7 carbon-free: Eliminates REC purchases ($20-40/MWh)
• Price certainty: 40-60 year reactor life (vs. volatile gas prices)
• Grid independence: Reduces interconnection queue risk

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Reactor Restart Economics

Three Mile Island Model

Restart Costs: $1.6B total

• Equipment replacement: $800M (steam generators, turbines)
• Systems upgrades: $400M (control systems, safety)
• Licensing/permitting: $200M (NRC fees, environmental)
• Contingency: $200M

Cost Comparison:

• Per kW: $1,900/kW (vs. $5,000-7,000 for new SMR)
• Timeline: 4 years (vs. 7-10 years new construction)
• Economics: Highly favorable for recently-closed plants

Restart Candidates (closed within 10 years):

Duane Arnold (Iowa) - Under Evaluation

Status: Feasibility study initiated Q4 2025 Drivers: Google Iowa ($7B), QTS Cedar Rapids ($10B), Microsoft West Des Moines Combined data center load: 2+ GW by 2030

Restart Economics:

• Cost estimate: $1.2B
• Timeline: 2026-2029 (if approved)
• PPAs: Google, Microsoft, QTS negotiating 25-year agreements
• Viability: High (strong PPA interest, intact infrastructure)

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Industry Implications

Carbon-Free Energy Achievement

Hyperscaler Carbon-Free Goals:

• Google: 24/7 carbon-free by 2030
• Microsoft: Carbon negative by 2030
• Amazon: Net-zero carbon by 2040

Nuclear’s Role:

• 24/7 generation: Unlike wind/solar (intermittent)
• No RECs needed: Direct carbon-free power (vs. market-based credits)
• Baseload match: Constant data center load requires constant generation

Impact:

• Renewable displacement? No - nuclear complements renewables
• Grid stability: Nuclear provides baseload, renewables provide marginal

Grid Independence

Interconnection Queue Crisis:

• PJM: 3-5 year queue for large loads
• ERCOT: 70 GW backlog
• CAISO: Similar constraints

Nuclear Solution:

• On-site generation: Bypasses queue entirely
• Behind-the-meter: Direct connection (vs. grid interconnection)
• Timeline certainty: 4-7 years (vs. 5-10 years grid-dependent)

Investment Scale

Total 2024-2030 Nuclear for Data Centers:

• SMR deployments: $8.0B (5 projects)
• Reactor restarts: $4.0B (2-3 projects)
• Total committed: $12.0B+
• Potential pipeline: $25B+ (additional announced studies)

Comparison:

• Utility grid expansions for data centers: $52B (2024-2030)
• Nuclear share: 23% of total infrastructure investment

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Regulatory Pathway

NRC Licensing Process

SMR Design Certification:

1. Pre-application (1-2 years): Vendor engagement with NRC
2. Formal review (3-5 years): Design certification application
3. Certification (upon completion): 15-year design approval

Construction&Operating License (COL):

1. Site-specific review (2-3 years): Environmental, safety analysis
2. Combined license issued: Allows construction + eventual operation
3. ITAAC completion: Inspections, tests, analyses, and acceptance criteria

Total Timeline: 7-10 years from concept to operation (first unit)

Accelerated pathways:

• Fleet deployment: 2nd+ unit 4-5 years (vs. 7-10 first)
• Reactor restarts: 4-5 years (existing license modification)

Environmental Review

NEPA Process:

• Environmental Impact Statement (EIS) required
• Public comment period: 60-90 days
• Common concerns: Water usage, thermal discharge, waste storage

Data Center-Nuclear Integration:

• Co-location advantage: Single EIS for facility + power (vs. separate reviews)
• Cooling synergy: Data center waste heat + nuclear cooling optimization

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Challenges & Risks

Technical Challenges

SMR Deployment:

• First-of-a-kind risk: New designs have construction/operational unknowns
• Supply chain: HALEU fuel production limited in U.S.
• Workforce: Limited SMR construction/operation experience

Reactor Restarts:

• Equipment degradation: Extended closure may require more extensive refurbishment
• Regulatory: NRC scrutiny on safety systems after extended shutdown
• Public perception: Historical incident concerns (e.g., TMI name recognition)

Economic Risks

Cost Overruns:

• Nuclear history: Conventional reactors typically 2-3x over budget
• SMR promise: Factory construction should reduce, but unproven
• Mitigation: Fixed-price PPAs shift risk to generator

Competitive Pressure:

• Renewable costs declining: Solar + storage approaching $40/MWh
• Nuclear LCOE: $60-80/MWh (SMR first units)
• Counter: 24/7 matching value + grid independence premium

Political/Social Risks

Nuclear Opposition:

• Environmental groups: Some oppose nuclear expansion
• Local resistance: Waste storage concerns, safety fears
• Mitigation: Data center community engagement lessons apply to nuclear component

Waste Management:

• No permanent repository: Yucca Mountain cancelled
• On-site storage: SMRs produce less waste (smaller cores)
• Solution horizon: 40-60 year reactor life outlasts current waste storage debate

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Forward Outlook

2026-2030 Projections

SMR Deployments:

• Confirmed: 5 projects, 1.2 GW, $8B
• Probable: 8-10 additional projects, 2-3 GW, $12-15B
• Possible: 20+ projects by 2030 (if early projects succeed)

Reactor Restarts:

• Confirmed: TMI Unit 1, 835 MW, $1.6B
• Probable: Duane Arnold, 615 MW, $1.2B
• Possible: 2-3 additional (if market develops)

Total 2030 Data Center Nuclear Capacity:

• Conservative: 3 GW ($12B invested)
• Base case: 6 GW ($25B invested)
• Bullish: 10+ GW ($40B+ invested)

Technology Evolution

Next-Generation SMRs (2030+):

• Microreactors: 1-20 MW (single data center facility)
• Advanced fuels: Accident-tolerant fuels (longer refueling cycles)
• Hybrid systems: Nuclear + hydrogen production + data center loads

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Related Pages

• Power Infrastructure
• Grid Expansion
• Sustainability
• Q4 2025 Update

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Last Updated: December 30, 2025 Nuclear partnership data current as of December 2025 Next Update: Q2 2026 (following Kairos/Google NRC application milestone)