Nuclear Power Partnerships for Datacenters

Executive Summary

Nuclear SMR partnerships represent a strategic shift in how hyperscalers and data center operators are addressing the massive energy demands of AI and cloud computing. In 2024, tech giants committed over $10 billion to nuclear partnerships with 22 gigawatts of projects in development globally. These partnerships leverage small modular reactors (SMRs), advanced Generation IV reactors, and microreactors to provide clean, reliable, 24/7 baseload power. The first commercial SMR-powered data centers are expected to come online by 2030, though regulatory approval processes remain complex and lengthy.

Market Overview

Market Scale: Over $10 billion committed by tech giants in 2024, with 22 gigawatts of projects in development globally

First Operations: 2027-2030 timeframe for first SMR deployments

Key Drivers:

Massive energy demands from AI and machine learning workloads
Need for reliable 24/7 baseload power
Corporate carbon-free energy commitments
Grid capacity constraints in key data center markets
Energy security and independence

Major Nuclear Partnerships

Microsoft Partnerships

Three Mile Island Restart with Constellation Energy

Capacity: 835 MW Timeline: Expected operational 2028 Technology: Traditional nuclear reactor restart Location: Three Mile Island Unit 1 (Crane Clean Energy Center), Pennsylvania Status: Under development - requires NRC approval

Microsoft describes this deal as a “once-in-a-lifetime opportunity” to secure reliable, carbon-free energy for data centers in Pennsylvania, Chicago, Virginia, and Ohio. The restart addresses growing AI infrastructure needs with clean baseload power.

Key Details:

100% of power from revived Unit 1 reactor will go to Microsoft
Unit 1 was not impacted by 1979 Unit 2 accident
Shut down in 2019 for economic reasons
Constellation investing approximately $1.6 billion to restart
Will create approximately 3,400 jobs
Expected to bring in more than $3 billion in state and federal taxes

Announced: September 20, 2024

Global SMR Strategy

Timeline: 2030s Status: Announced - early planning stage

Microsoft hired a principal program manager of nuclear technology in 2023 to be responsible for “maturing and implementing a global small modular reactor (SMR) and microreactor energy strategy.” The company is developing a comprehensive nuclear strategy to power its growing cloud and AI data center operations with clean, reliable energy.

Note: While Bill Gates’ TerraPower is connected to Microsoft through Gates’ leadership, TerraPower has stated it does not currently have any direct agreements to sell reactors to Microsoft.

Announced: September 25, 2023

Amazon Web Services Partnerships

X-energy Strategic Investment

Capacity: 5,000 MW Timeline: Deployment by 2039 Technology: Xe-100 high-temperature gas-cooled SMR (80 MW modules) Location: Multiple sites across United States Status: Under development

Amazon invested approximately $500 million in X-energy’s Series C-1 financing, representing the largest commercial deployment target of SMRs announced to date. Amazon aims to bring more than 5 gigawatts of new nuclear power projects online across the United States by 2039 to support its growing data center energy demands and meet Climate Pledge commitment to be net-zero carbon by 2040.

Announced: October 16, 2024

Energy Northwest Partnership (Washington)

Capacity: 960 MW (expandable from 320 MW initial) Timeline: Early 2030s Technology: Four X-energy Xe-100 SMRs (80 MW each) Location: Near Columbia Generating Station, Richland, Washington Status: Under development - feasibility phase funded by Amazon

The project will develop four X-energy Xe-100 SMRs with initial capacity of 320 MW and option to expand to 960 MW. Each Xe-100 module is a high-temperature gas-cooled reactor. The project will support up to 1,000 temporary construction jobs and 100+ permanent jobs.

Opposition: The project has faced opposition from environmental groups and tribes concerned about proximity to Hanford nuclear site.

Announced: October 16, 2024

Dominion Energy Partnership (Virginia)

Capacity: 300 MW minimum Timeline: 2030s Technology: SMR (X-energy among companies submitting proposals) Location: Near North Anna Power Plant, Louisa County, Virginia Status: Under development - MoU signed

To support data center expansion in Virginia where Dominion projects power demands will increase by 85% over the next 15 years. The agreement explores SMR development with at least 300 megawatts capacity near the North Anna nuclear facility.

The project involves jointly exploring innovative ways to advance SMR development and financing while mitigating potential cost and development risks.

Announced: October 16, 2024

Talen Energy / Susquehanna Colocation

Capacity: 1,920 MW Timeline: Operational (data center acquired) Technology: Traditional nuclear colocation Location: Cumulus data center adjacent to Susquehanna Nuclear Station, Pennsylvania Status: Under development - regulatory challenges

Amazon acquired the 960 MW Cumulus data center campus for $650 million. Talen Energy entered into a 1,920 MW power purchase agreement to supply data centers in Pennsylvania.

Regulatory Challenges: Original behind-the-meter arrangement faced FERC rejection in November 2024 due to concerns about shifting up to $140 million in annual transmission costs to PJM customers. The deal was restructured to a “front of the meter” framework to address regulatory concerns. Talen filed suit against FERC in January 2025.

Announced: March 2024

Google Partnerships

Kairos Power SMR Agreement

Capacity: 500 MW across 6-7 reactors Timeline: First reactor 2030, full deployment through 2035 Technology: KP-FHR fluoride salt-cooled high-temperature reactor (Gen IV advanced) Location: Multiple sites across United States Status: Under development

World’s first corporate agreement to purchase nuclear energy from multiple small modular reactors. Kairos will develop, construct and operate a series of advanced nuclear plants, selling energy to Google under Power Purchase Agreements.

Kairos Power uses molten-salt cooling system (lithium fluoride-beryllium fluoride “Flibe”) with ceramic pebble-type TRISO fuel. Maximum thermal power of 320 MW delivers up to 140 MWe per reactor.

Announced: October 14, 2024

Tennessee Valley Authority / Kairos Power Hermes 2

Capacity: 50 MW Timeline: 2030 Technology: Generation IV advanced reactor (Hermes 2) Location: Oak Ridge, Tennessee Status: Under development - NRC construction permit granted November 2024

Historic first purchase of electricity from an advanced Generation IV reactor by a U.S. utility. Kairos Power’s Hermes 2 plant will deliver up to 50 MW of reliable power to TVA grid. TVA will purchase electricity, and Google will procure clean energy attributes to power data centers in Tennessee and Alabama.

The agreement helps re-establish Oak Ridge as a nuclear innovation hub with new programs at University of Tennessee and other local universities.

Announced: August 18, 2025

Elementl Power Development Agreement

Capacity: 1,800 MW across three sites (600 MW each) Timeline: By 2035 Technology: Technology-agnostic advanced nuclear Location: Three project sites across United States, specific locations TBD Status: Announced - early-stage development

Google will fund development of three project sites, each generating at least 600 megawatts. Elementl Power is technology agnostic and will choose reactor technology that’s furthest along in development when ready to begin construction.

Elementl Power, founded in 2022, aims to deploy over 10 gigawatts of next-generation nuclear power in the US by 2035.

Announced: May 7, 2025

Meta Partnerships

Constellation Energy Clinton Plant

Capacity: 1,121 MW Timeline: June 2027 Technology: Traditional nuclear (existing reactor) Location: Clinton Clean Energy Center, Illinois Status: Under development - PPA in place

20-year nuclear power agreement to support Meta’s clean energy goals and AI data center operations in the region. Meta will buy roughly 1.1 gigawatts of energy from Constellation’s Clinton Clean Energy Center starting June 2027, representing the entire output from the site’s one nuclear reactor.

Economic Impact:

Deal will expand Clinton’s output by 30 MW through plant uprates
Preserves 1,100 jobs
Delivers $13.5 million in annual tax revenue
Adds $1 million in charitable giving over five years
Prevents plant retirement by replacing expiring state subsidies

Constellation is evaluating strategies for future SMR development at the site.

Announced: June 3, 2025

Nuclear Request for Proposals

Capacity: 1-4 GW (4,000 MW target) Timeline: Early 2030s Technology: SMR or larger nuclear reactors Location: United States, specific locations TBD Status: RFP process - received over 50 qualified submissions

Meta issued Request for Proposals targeting developers that can bring nuclear reactors online starting in early 2030s, seeking 1-4 GW of new nuclear generation capacity to support data centers and surrounding communities.

RFP Timeline:

Initial qualification deadline: January 3, 2025
Full proposals deadline: February 7, 2025
Received over 50 qualified submissions from utilities, developers, and nuclear technology manufacturers

Note: Previous attempt to build nuclear-powered data center was complicated by presence of rare bee species on proposed site.

Announced: December 3, 2024

Oracle Partnership

Capacity: 1,000 MW (3 reactors) Timeline: Early 2030s Technology: SMR Location: Undisclosed Partner: Undisclosed Status: Announced - building permits secured

Oracle announced plans to construct a gigawatt-scale data center powered by three small modular reactors. Founder Larry Ellison stated during quarterly earnings call that building permits for the reactors have already been secured and the project is in design phase.

Oracle is partnering with a company that already holds permits for three small reactors. Location and specific technology provider not disclosed. The facility will exceed Oracle’s largest existing 800 MW datacenter and will contain acres of Nvidia GPU clusters.

Note: Even optimistic estimates put first deployment in early 2030s.

Announced: September 10, 2024

Switch Partnership

Oklo Master Power Agreement

Capacity: 12,000 MW over 20 years Timeline: Initial deployments 2029, through 2044 Technology: Aurora microreactor (sodium-cooled fast reactor) Location: Multiple sites across United States Status: Announced - non-binding Master Power Agreement

One of the largest corporate clean power agreements ever signed. Non-binding Master Power Agreement to deploy 12 GW of Oklo Aurora powerhouse projects through 2044.

Key Details:

Initial deployments of Oklo’s 50-MWe Aurora powerhouse could begin in 2029
Deal increases Oklo’s order book from 2.1 GW to approximately 14 GW
Switch operates data centers in Gaines Township (Michigan), Reno, and Las Vegas
Oklo is exploring 100+ MW designs for future scalability
Aurora is a sodium-cooled, metal-fueled fast reactor

Announced: December 18, 2024

Additional Partnerships

Equinix + Oklo

Capacity: 500 MW Timeline: Late 2020s Technology: Aurora microreactor Location: Multiple colocation data center sites Status: Pre-agreement signed with $25 million prepayment

First SMR deal signed by a colocation data center company. Equinix signed pre-agreement to procure up to 500 MW of nuclear energy from Oklo, making a $25 million prepayment.

Oklo’s Aurora fast fission reactors produce up to 15-50 MW and can operate for 10+ years before refueling. Part of broader alternative energy strategy including agreements with Radiant (20 microreactors), ULC-Energy (250 MWe), and Stellaria (500 MWe).

Announced: 2024

Wyoming Hyperscale + Oklo

Capacity: 100 MW Timeline: Late 2020s Technology: Aurora microreactor Location: Aspen Mountain, southeast of Evanston, Wyoming Status: Non-binding LOI for 20-year PPA; NRC pre-application underway

Oklo and Wyoming Hyperscale signed non-binding LOI to collaborate on 20-year PPA to supply 100 MW of clean power. Wyoming Hyperscale building data center on 58 acres on Aspen Mountain.

Oklo plans first Aurora Powerhouse commissioned before end of decade. Oklo capacity offerings range from 15 MWe to 100 MWe.

Announced: 2024

Sabey Data Centers + TerraPower

Capacity: TBD Timeline: 2030s Technology: Natrium sodium-cooled fast reactor with molten salt energy storage (345 MW base, 500 MW peak) Location: Texas and Rocky Mountain region Status: MoU for strategic collaboration

TerraPower and Sabey Data Centers signed MoU to explore development and deployment of Natrium technology into SDC’s data center operations. Initial focus on exploring new Natrium plants in Rocky Mountain region and Texas.

Natrium features 345 MW sodium-cooled fast reactor with integrated molten salt energy storage system that can boost output to 500 MW for 5.5+ hours. First Natrium plant expected online in 2030 at Kemmerer, Wyoming demonstration site.

Note: Bill Gates is chairman of TerraPower board.

Announced: January 24, 2025

Standard Power + NuScale

Capacity: 1,848 MW Timeline: Late 2020s-2030s Technology: NuScale Voygr SMR (24 units of 77 MW modules) Location: Ohio and Pennsylvania (two facilities) Status: Uncertain - partnership not mentioned in recent NuScale earnings calls

Standard Power selected NuScale SMR technology to provide nearly 2 GW of power for two future data center facilities. NuScale’s Voygr design was first SMR to gain final NRC approval for US deployment.

Status Note: Partnership status unclear as of 2025. NuScale has not mentioned partnership in recent earnings calls and has yet to finalize deal with any U.S. data center operators due to “complexity of putting these projects together.”

Announced: October 2023

Technology Overview

Small Modular Reactor (SMR) Technology

Small Modular Reactors represent a new generation of nuclear power plants with several key advantages:

Definition: Nuclear reactors with electrical output less than 300 MWe, factory-built and transported to site

Key Characteristics:

Smaller footprint: Can be co-located with data centers
Modular construction: Factory-built, reducing construction time and costs
Enhanced safety: Passive safety features using gravity and natural circulation
Scalability: Deploy in phases as demand grows
Reduced capital risk: Lower upfront costs compared to traditional nuclear plants

Reactor Technology Types

X-energy Xe-100 (High-Temperature Gas-Cooled Reactor)

Capacity: 80 MW per module Cooling: High-temperature gas cooling Fuel: TRISO (tri-structural isotropic) particle fuel Partnerships: Amazon, Energy Northwest, Dominion Energy

TRISO fuel consists of uranium fuel kernels surrounded by carbon and ceramic layers, providing multiple containment barriers. The fuel can withstand extreme temperatures without melting, providing inherent safety advantages.

Key Feature: Each Xe-100 module provides 80 MW of full-time electricity. Multiple modules can be combined for larger capacity needs.

Kairos Power KP-FHR (Fluoride Salt-Cooled High-Temperature Reactor)

Capacity: Up to 140 MWe per reactor Cooling: Molten fluoride salt (lithium fluoride-beryllium fluoride “Flibe”) Fuel: Ceramic pebble-type TRISO fuel Technology: Generation IV advanced nuclear Partnerships: Google, Tennessee Valley Authority

Status: First Generation IV advanced nuclear reactor to receive NRC construction permit (Hermes 2, November 2024)

Key Feature: Combines molten salt cooling with TRISO fuel for enhanced safety. Maximum thermal power of 320 MW delivers up to 140 MWe. Hermes 2 demonstration plant (35 MW thermal) targeted for 2027 operation at Oak Ridge, Tennessee.

Oklo Aurora (Liquid Metal-Cooled Fast Reactor)

Capacity: 15-50 MW (with 100+ MW designs under exploration) Cooling: Liquid sodium Fuel: Metal fuel Type: Fast reactor (microreactor) Partnerships: Switch, Equinix, Wyoming Hyperscale

Key Features:

Can operate 10+ years before refueling
Deployable in phases for scalability
Provides power directly on-site or nearby
First Aurora powerhouse targeted for 2027 at Idaho National Laboratory
Total order book approximately 14 GW

NuScale Voygr (Pressurized Water Reactor SMR)

Capacity: 77 MWe per module Technology: Pressurized water reactor (PWR) Status: First SMR to receive final NRC approval for US deployment (2020) Partnerships: Standard Power (status unclear)

Note: Formed exclusive partnership with ENTRA1 Energy in 2022 to commercialize SMR technology. Has yet to finalize deal with any US data center operators due to project complexity.

TerraPower Natrium (Sodium-Cooled Fast Reactor with Energy Storage)

Capacity: 345 MW base, 500 MW peak (for 5.5+ hours) Cooling: Liquid sodium in non-pressurized system (>350°C) Fuel: High-assay low-enriched uranium (HALEU) Storage: Patented molten salt energy storage system Partnerships: Sabey Data Centers

Key Features:

Design capitalizes on passive safety features like gravity and thermal convection
Developed in partnership with GE Hitachi
Demonstration plant at Kemmerer, Wyoming expected operational by 2030
Estimated $4 billion cost (DOE supplying half)
Chairman: Bill Gates

Constellation Energy (Traditional Nuclear + Future SMR)

Capacity: 835 MW (Three Mile Island), 1,121 MW (Clinton) Technology: Traditional nuclear (existing plants) + future SMR development Partnerships: Microsoft (TMI restart), Meta (Clinton plant)

Current Projects:

Restarting Three Mile Island Unit 1 for Microsoft ($1.6 billion investment)
20-year PPA with Meta for entire Clinton plant output
Evaluating strategies for SMR development at Clinton site

Elementl Power (Technology-Agnostic Developer)

Capacity: 600 MW per site Approach: Technology-agnostic advanced nuclear project developer Mission: Deploy over 10 GW of next-generation nuclear power in US by 2035 Partnerships: Google (three sites, 1,800 MW total)

Strategy: Site-first approach - will choose reactor technology furthest along in development when ready for construction. Founded in 2022 as independent power producer.

Safety Advantages

SMRs and advanced reactors incorporate multiple layers of safety improvements over traditional nuclear plants:

Passive Safety Systems

Natural circulation: Uses gravity and thermal convection rather than pumps
Gravity-driven shutdown: Control rods fall into place without power
Atmospheric pressure operation: Reduces risk of pressure-related accidents

Fuel Technology

TRISO fuel: Multiple containment barriers prevent fission product release
High temperature tolerance: Fuel maintains integrity even under extreme conditions
Meltdown resistance: Design prevents core melt scenarios

Design Features

Underground placement: Many designs use below-grade reactor vessels for additional protection
Smaller core: Reduced fission product inventory limits potential release
Modular isolation: Each module can be isolated from others
Extended grace periods: Can maintain safe conditions for days without operator intervention

Operational Safety

Factory construction: Quality control in controlled environment
Reduced operator error: Automated systems reduce human intervention requirements
Simplified designs: Fewer components means fewer failure points

Timeline to Deployment

Near-Term (2027-2030)

2027:

Meta / Constellation Clinton: Clinton plant PPA begins (June 2027)
Oklo Idaho: First Aurora powerhouse at Idaho National Laboratory
Kairos Hermes 2: Demonstration reactor operational at Oak Ridge

2028:

Microsoft / Constellation: Three Mile Island Unit 1 restart

2030:

Google / Kairos / TVA: Hermes 2 commercial plant (50 MW)
Google / Kairos: First commercial SMR online (500 MW program begins)
TerraPower: Kemmerer Natrium demonstration plant

Mid-Term (2030-2035)

Early 2030s:

AWS / Energy Northwest: Four X-energy Xe-100 SMRs in Washington (320-960 MW)
AWS / Dominion: Virginia SMR development (300+ MW)
Meta: RFP nuclear projects come online (1-4 GW)
Oracle: Three SMRs for gigawatt-scale datacenter
Sabey / TerraPower: Natrium deployments in Texas and Rocky Mountain region

By 2035:

Google / Kairos: Full 500 MW across 6-7 reactors
Google / Elementl: Three sites operational (1,800 MW)

Long-Term (2035-2044)

By 2039:

AWS / X-energy: 5,000 MW across multiple US sites

Through 2044:

Switch / Oklo: 12 GW deployment complete

Regulatory Landscape

Nuclear Regulatory Commission (NRC)

The NRC is the primary federal regulator for nuclear facilities in the United States.

Part 53 Licensing Framework

Status: NRC expects to issue Part 53 final rule by end of 2027

The NRC is developing a new regulatory framework (10 CFR Part 53) specifically for advanced reactors and SMRs. This technology-inclusive, risk-informed approach aims to:

Reduce licensing timelines
Accommodate innovative designs
Maintain rigorous safety standards
Enable performance-based regulation

Licensing Process

Timeline: 5-7 years typical for permitting and construction Cost: $50-100 million estimated for licensing process Complexity: Multiple review phases including design certification, site approval, and construction/operating licenses

Recent Progress:

Kairos Power received NRC construction permit for Hermes 2 reactor in November 2024 (first Gen IV reactor)
NuScale received first SMR design certification in 2020
X-energy pursuing NRC approval for Xe-100 reactor design

Plant Restarts

Three companies have notified NRC of plans to restart shuttered nuclear plants for economic reasons:

Constellation (Three Mile Island Unit 1) - requires comprehensive safety and environmental review
Two additional unnamed facilities

Federal Energy Regulatory Commission (FERC)

FERC oversees interstate electricity transmission and wholesale power markets.

Interconnection Challenges

November 2024 Amazon-Talen Decision: FERC initially rejected expanded interconnection arrangement for Amazon’s Susquehanna colocation deal, citing concerns about:

Shifting up to $140 million in annual transmission costs to PJM customers
Behind-the-meter arrangements bypassing transmission system
Grid reliability and cost allocation

Resolution: Deal restructured to “front of the meter” framework. Talen filed suit against FERC in January 2025.

Implications: Highlights regulatory complexity for co-located datacenter/nuclear arrangements and need for clear frameworks.

State-Level Support

State Incentives and Policies

Many states are actively supporting nuclear development:

Pennsylvania:

Three Mile Island restart expected to generate $3 billion in state and federal taxes
3,400 jobs created

Washington:

Energy Northwest partnership with AWS
1,000+ construction jobs, 100+ permanent jobs

Illinois:

Clinton plant PPA prevents retirement, preserves 1,100 jobs
$13.5 million annual tax revenue

Wyoming:

Hosting TerraPower Natrium demonstration plant
DOE contributing $2 billion to Kemmerer project
Supporting Wyoming Hyperscale projects

Tennessee:

TVA partnership establishing Oak Ridge as nuclear innovation hub
University programs supporting workforce development

Industry Advocacy

Data Center Coalition Letter (August 2025): Sent letter to NRC Chair urging streamlined licensing for advanced reactors to meet urgent datacenter energy needs

Key Requests:

Accelerated review timelines
Clear guidance for co-location arrangements
Risk-informed regulatory approaches
Coordination with FERC on interconnection issues

Economics

Cost Per MWh Comparisons

Nuclear power economics vary significantly based on project type:

Traditional Nuclear (Existing Plants)

Levelized Cost: $30-40 per MWh (operating costs only)

Advantages:

No construction costs for existing plants
Proven technology with established operations
Immediate availability (or near-term for restarts)

Examples:

Meta/Clinton plant: Leveraging existing infrastructure
Microsoft/Three Mile Island: $1.6B restart cost amortized over decades

Small Modular Reactors (First-of-a-Kind)

Estimated LCOE: $80-120 per MWh (first deployments) **Projected LCOE**:$ 60-80 per MWh (Nth-of-a-kind with learning)

Cost Factors:

Factory fabrication reduces construction costs
Shorter build times reduce financing costs
Smaller upfront capital requirements
Uncertainty premium for first-of-a-kind

Comparison Points:

Natural gas combined cycle: $40-70 per MWh
Wind (with storage): $60-100 per MWh
Solar (with storage): $70-110 per MWh
Coal: $60-90 per MWh

Microreactors

Estimated LCOE: $100-150 per MWh (initial deployments)

Premium Justification:

Ultra-reliable power for critical applications
Remote/off-grid capability
No transmission infrastructure needed
24/7 baseload power

Capital Requirements

Traditional Nuclear Restarts

Three Mile Island: $1.6 billion (Constellation investment)

835 MW capacity
~$1,900 per kW
20-year operational life extension

SMR Projects

Typical Capital Cost: $5,000-8,000 per kW installed (first-of-a-kind) **Target Capital Cost**:$ 3,000-4,000 per kW (Nth-of-a-kind)

Examples:

TerraPower Natrium demonstration: $4 billion for 345 MW (~$ 11,600/kW, includes DOE funding for demonstration)
X-energy Xe-100: Estimated $5,000-6,000/kW at scale

Comparison:

Natural gas combined cycle: $1,000-1,500/kW
Wind: $1,500-2,000/kW (plus storage)
Solar: $1,000-1,500/kW (plus storage)
Traditional large nuclear: $6,000-10,000/kW (recent US projects)

Project Financing

Key Considerations:

First-of-a-kind premium: 20-50% cost uncertainty
Regulatory risk: Licensing delays can increase costs
Technology risk: Unproven designs carry higher financing costs
Customer creditworthiness: Tech giants’ balance sheets enable favorable terms

Financing Models:

Direct corporate investment (Amazon’s $500M in X-energy)
Power Purchase Agreements (20+ year terms typical)
Prepayments (Equinix’s $25M to Oklo)
Public-private partnerships (DOE cost-sharing)

Long-Term Power Purchase Agreements

PPAs are the dominant commercial structure for datacenter nuclear projects:

Typical PPA Terms

Duration: 20-25 years (longer than typical renewable PPAs)

Rationale:

Matches reactor operational life and depreciation
Provides revenue certainty for capital-intensive projects
Aligns with datacenter infrastructure lifecycles
Enables project financing

Structure Types

Contracted Capacity Models:

Full Output Purchase (Meta/Clinton, Microsoft/TMI):
- Buyer takes 100% of plant output
- Fixed price or indexed pricing
- Buyer assumes volume risk
Partial Output (Google/TVA/Kairos):
- Utility purchases power, buyer gets clean energy attributes
- Enables grid integration
- Shared risk model
Phased Deployment (AWS/X-energy, Google/Kairos):
- Multiple units coming online over time
- Matches demand growth
- Reduces upfront commitment

Pricing Structures:

Fixed price: Provides cost certainty (most common)
Cost-of-service: Passes through operating costs plus return
Hybrid: Fixed capacity charge plus variable energy charge

Risk Allocation

Developer/Operator Risks:

Construction cost overruns
Licensing delays
Technology performance
Operating cost management

Buyer Risks:

Off-take obligation (must pay for contracted capacity)
Regulatory changes affecting value
Technology obsolescence

Shared Risks:

Force majeure events
Grid interconnection issues
Fuel supply disruptions

Technical Challenges

Despite significant progress, several technical challenges remain:

Permitting and Construction Timelines

Issue: 5-7 year minimum from licensing to operation

Bottlenecks:

NRC review processes not optimized for advanced reactors
Limited staff experience with novel designs
Environmental review requirements
Stakeholder engagement and public comment periods

Mitigations:

Part 53 framework to streamline advanced reactor licensing
Early site permits to separate site approval from design approval
Pre-application engagement with NRC
Industry advocacy for process improvements

Lack of Operating SMRs in US

Status: No SMRs currently operational in United States

Implications:

First-of-a-kind cost and schedule risks
Unproven operational performance
Limited operating data for licensing basis
Workforce training challenges

Global Context:

Russia and China have deployed floating SMRs and HTGRs
Canada pursuing SMR development
UK evaluating SMR designs

Path Forward:

Demonstration plants (Hermes 2, Natrium Kemmerer) will provide operating experience
NRC approval of designs reduces regulatory uncertainty
Manufacturing scale-up critical for cost reduction

Nuclear Fuel Supply

Challenge: High-Assay Low-Enriched Uranium (HALEU) availability

Background:

Many advanced reactors require HALEU (5-20% enrichment vs. less than 5% for traditional reactors)
Limited US HALEU production capacity
Current supply from downblended weapons material and Russian sources

Solutions in Progress:

DOE supporting domestic HALEU production
Centrus Energy operating HALEU demonstration cascade in Ohio
URENCO exploring HALEU production
TerraPower partnering with Centrus for Natrium fuel

TRISO Fuel:

X-energy and Kairos designs use TRISO particle fuel
X-energy building TRISO fuel fabrication facility
Limited production capacity initially

Grid Interconnection Complexity

Technical Issues:

Transmission capacity constraints in key datacenter markets
Interconnection queue backlogs (5+ year waits common)
Studies required for grid stability impact

Regulatory Issues:

FERC jurisdiction over interstate transmission
State PUC authority over distribution
Cost allocation disputes (Amazon-Talen case)
Behind-the-meter vs. front-of-the-meter frameworks

Solutions:

Co-location strategies to minimize transmission needs
Early interconnection applications
Utility partnerships to leverage existing infrastructure
Microgrid configurations for isolated operation

Cost Uncertainties for First-of-a-Kind Deployments

Sources of Uncertainty:

Engineering changes: Design modifications during construction
Supply chain: Limited vendor base for specialized components
Labor: Specialized construction skills in short supply
Schedule slips: Delays increase financing costs
Regulatory changes: Mid-project licensing modifications

Historical Context:

Vogtle Units 3 & 4 (first AP1000s in US): Nearly doubled from $14B to$ 35B budget
Learning curve typically shows 20-30% cost reduction from first to third unit

Risk Mitigation:

Factory fabrication for quality control and cost certainty
Fixed-price contracts with vendors
Modular construction to capture learning between units
Early involvement of construction contractors in design

Competitive Advantages

Nuclear power offers several unique advantages for datacenter applications:

Carbon-Free Electricity Generation

Zero operational emissions: No greenhouse gas emissions during power generation

Clean energy credits: Qualifies for renewable energy certificates and clean energy standards

Corporate sustainability: Enables companies to meet net-zero commitments:

Amazon Climate Pledge: Net-zero by 2040
Google: 24/7 carbon-free energy by 2030
Meta: 100% clean electricity goal
Microsoft: Carbon negative by 2030

Comparison: Wind and solar require significant land use and storage; nuclear provides carbon-free baseload

High Capacity Factors

Typical performance: >90% capacity factor (percentage of time at full power)

Reliability: Operates continuously except for refueling outages (12-24 months between outages)

Comparison:

Wind: 35-45% capacity factor
Solar: 20-30% capacity factor
Natural gas: 50-60% typical
Hydroelectric: 40-50% (depends on water availability)

Datacenter implications: Predictable power availability critical for AI workloads

Small Physical Footprint

Land use comparison (per MW):

Nuclear: 0.5-1 acre
Solar: 5-10 acres
Wind: 40-100 acres (including spacing)

Site flexibility:

Can be co-located with datacenters
Underground placement options
Minimal visual impact
Limited environmental footprint

Example: Oklo Aurora microreactor on pad smaller than basketball court

Minimal Weather/Seasonal Variability

Consistent output: No dependence on weather conditions

No seasonal variation: Unlike wind, solar, and hydro

Grid stability: Provides synchronous inertia for grid frequency control

Datacenter advantage: Eliminates need for overbuilding and massive storage systems

Long Operational Life

Design life: 60-80 years with life extensions (proven with existing fleet)

Economic benefit: Capital costs amortized over decades

Infrastructure alignment: Matches long-term nature of datacenter facilities

Comparison:

Solar panels: 25-30 years
Wind turbines: 20-25 years
Natural gas plants: 30-40 years
Batteries: 10-15 years

Co-Location Reducing Transmission Costs

Direct connection: Power delivered on-site or nearby

Transmission avoidance: No need for long-distance transmission infrastructure

Reduced line losses: Typically 5-10% loss in transmission avoided

Cost savings: Transmission costs can be $50-100+ per MWh in constrained regions

Regulatory advantage: May avoid some FERC jurisdictional issues (though Amazon-Talen case shows complexity)

Grid relief: Reduces demand on congested transmission corridors

Partnership Projects Summary Table

Data Center Operator	Nuclear Partner	Technology	Capacity (MW)	Timeline	Status	Location
Microsoft	Constellation Energy	Traditional restart	835	2028	Under development	Three Mile Island, PA
Microsoft	Various	SMR/microreactor	TBD	2030s	Announced	Global
Amazon	X-energy	Xe-100 HTGR SMR	5,000	By 2039	Under development	Multiple US sites
Amazon	Energy Northwest	Xe-100 HTGR SMR	960	Early 2030s	Under development	Richland, WA
Amazon	Dominion Energy	SMR	300+	2030s	Under development	North Anna, VA
Amazon	Talen Energy	Traditional colocation	1,920	Operational	Regulatory challenges	Susquehanna, PA
Google	Kairos Power	KP-FHR Gen IV	500	2030-2035	Under development	Multiple US sites
Google	Kairos / TVA	KP-FHR Hermes 2	50	2030	Under development	Oak Ridge, TN
Google	Elementl Power	Technology-agnostic	1,800	By 2035	Early development	Three US sites TBD
Meta	Constellation Energy	Traditional	1,121	Jun 2027	Under development	Clinton, IL
Meta	Various (RFP)	SMR or larger	1,000-4,000	Early 2030s	RFP process	US sites TBD
Oracle	Undisclosed	SMR	1,000	Early 2030s	Announced	Undisclosed
Switch	Oklo	Aurora microreactor	12,000	2029-2044	Announced	Multiple US sites
Equinix	Oklo	Aurora microreactor	500	Late 2020s	Pre-agreement	Multiple colocation sites
Wyoming Hyperscale	Oklo	Aurora microreactor	100	Late 2020s	LOI	Aspen Mountain, WY
Standard Power	NuScale	Voygr SMR	1,848	Late 2020s-2030s	Status unclear	Ohio and PA
Sabey Data Centers	TerraPower	Natrium	TBD	2030s	MoU	Texas and Rocky Mountains

Total Committed Capacity: 24+ GW across all partnerships

SMR Vendor Comparison Table

Vendor	Technology	Capacity (MW)	Cooling	Fuel Type	DC Partnerships	Regulatory Status
X-energy	Xe-100 HTGR	80 per module	High-temp gas	TRISO	AWS, Energy Northwest, Dominion	NRC review in progress
Kairos Power	KP-FHR	140 (50 demo)	Molten fluoride salt	TRISO pebbles	Google, TVA	Hermes 2 construction permit (Nov 2024)
Oklo	Aurora fast reactor	15-50 (100+ planned)	Liquid sodium	Metal fuel	Switch, Equinix, Wyoming Hyperscale	NRC pre-application
NuScale	Voygr PWR	77 per module	Pressurized water	LEU	Standard Power (unclear)	First SMR with NRC approval (2020)
TerraPower	Natrium	345 (500 peak)	Liquid sodium	HALEU	Sabey Data Centers	Kemmerer demo under construction
Constellation	Traditional + SMR	835-1,121	Water	LEU	Microsoft, Meta	Operating plants; SMR evaluation
Elementl Power	Tech-agnostic	600 per site	Varies	Varies	Google	Early site development

Investment and Economic Impact

Direct Investment

Corporate investments in nuclear technology:

Amazon: ~$500 million in X-energy Series C-1
Constellation: $1.6 billion for Three Mile Island restart
TerraPower: $4 billion for Natrium demonstration (with DOE)
Equinix: $25 million prepayment to Oklo

Total industry commitments: $10+ billion in 2024

Job Creation

Construction phase:

Three Mile Island restart: 3,400 jobs
Energy Northwest SMRs: 1,000+ temporary construction jobs

Permanent operations:

Three Mile Island: Existing workforce retained
Energy Northwest: 100+ permanent jobs
Clinton plant: 1,100 jobs preserved

Supply chain and manufacturing: Thousands of additional jobs in fabrication, engineering, and support services

Tax Revenue

Direct tax contributions:

Three Mile Island: $3 billion in state and federal taxes over life of plant
Clinton plant: $13.5 million annual tax revenue

Economic multiplier: Nuclear facilities generate significant indirect economic activity in surrounding communities

Community Benefits

Charitable contributions:

Clinton plant: $1 million in charitable giving over five years

Educational partnerships:

Oak Ridge/TVA/Kairos: New nuclear programs at University of Tennessee
Workforce development initiatives across project sites

Future Outlook

Technology Maturation

2027-2030: First wave of demonstration projects and reactor restarts

Proof of concept for SMR economics
Operating experience for licensing future projects
Supply chain development

2030-2035: Commercial deployment phase

Multiple vendors with operating reactors
Cost reductions from learning curve
Established regulatory pathways

Post-2035: Mature market

Standardized designs and processes
Competitive economics with other clean energy sources
Widespread adoption for datacenter and other applications

Market Projections

Datacenter demand growth: 10-20% annual increase driven by AI workloads

Nuclear capacity additions: 20-50 GW of nuclear capacity for datacenters by 2040

Market size: $50-100 billion in nuclear infrastructure investment over next 15 years

Regulatory Evolution

Expected developments:

Part 53 final rule (2027) streamlining advanced reactor licensing
FERC guidance on datacenter co-location and interconnection
State-level nuclear support policies
International regulatory harmonization

Technology Innovations

Next-generation designs:

Larger SMRs (100-300 MW range) for economies of scale
Microreactors (less than 20 MW) for remote applications
Hybrid systems integrating nuclear with renewables and storage
Advanced fuel cycles for waste reduction

Key Takeaways

Scale: 24+ GW of nuclear capacity committed for datacenter power represents a fundamental shift in energy strategy for tech industry
Timeline: First projects operational 2027-2030, with major deployment wave 2030-2035
Technology diversity: Multiple reactor types (SMRs, microreactors, traditional restarts) provide options for different use cases
Economics: Higher upfront costs than fossil fuels but competitive with renewable+storage for 24/7 power
Regulatory challenges: NRC and FERC processes remain complex but evolving to accommodate new technologies
First-mover advantage: Companies committing now secure early access to limited near-term capacity
Risk mitigation: Long-term PPAs, utility partnerships, and government support reducing deployment risks
Sustainability imperative: Nuclear essential for meeting corporate net-zero commitments while supporting AI growth
Supply chain: Manufacturing capacity and fuel supply need significant expansion to meet demand
Demonstration success critical: Performance of first projects (Hermes 2, Natrium, Aurora) will determine pace of broader adoption

Sources and References

All information sourced from official company announcements, regulatory filings, and industry publications as documented in the nuclear partnerships JSON dataset (last updated: October 14, 2025).

Key sources:

Company press releases and investor relations materials
U.S. Nuclear Regulatory Commission filings and announcements
Federal Energy Regulatory Commission orders and proceedings
Industry publications (Utility Dive, Power Magazine, World Nuclear News)
News coverage (CNBC, NPR, TechCrunch)

This document represents the state of nuclear partnerships for datacenter power as of October 2025. The rapidly evolving nature of this industry means that new partnerships, regulatory developments, and technology advances are announced frequently.