The Power Transition

Atoms for Algorithms: The Rise of SMRs and Microreactors

Published February 24, 2026

Daniel Martin

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A photorealistic, wide-angle view of a modular nuclear facility set in a tranquil evergreen forest at sunrise. In the foreground, three sleek, white cylindrical Small Modular Reactors (SMRs) with glowing green accents sit on a metallic platform. Teal energy lines flow from the reactors toward a modern, minimalist data center building in the distance. The entire scene is framed by a clean, white geometric hexagon overlay, symbolizing precision and advanced technology. The soft morning light illuminates the surrounding pine trees and rolling hills, creating a serene and high-tech atmosphere.

Series Navigation: Part 1 of 6 in The AI Energy Infrastructure Handbook

Summary: The Nuclear Option

Advanced computing centers now require massive amounts of constant power that traditional electrical grids often cannot provide without significant upgrades.
Small Modular Reactors (SMRs) offer a solution by providing dedicated, carbon-free energy directly at the site of the data center.
Unlike traditional nuclear plants, SMRs are designed to be built in factories and transported to their final location, reducing construction time and costs.
Major technology companies are increasingly securing long-term nuclear power agreements to meet their zero-emission goals while ensuring 24/7 operations.

Atoms for Algorithms: Why AI Needs Small Modular Reactors

For decades, industrial power was a simple matter of connecting to a local utility. However, the current demand for high-performance artificial intelligence has changed the math. A single AI-focused data center can consume as much electricity as a small city, and this power must be available every second of every day.

Traditional renewable sources like solar and wind are valuable but variable. To maintain the uptime required for global digital services, energy must be constant. This is known as baseload power. Nuclear energy is the only carbon-free source capable of providing this level of consistency at scale.

The Transition to Small Modular Reactors (SMRs)

The primary challenge with traditional nuclear power is the scale. Building a massive reactor takes over a decade and requires billions in upfront capital. Small Modular Reactors (SMRs) solve this by shrinking the technology.

SMRs are roughly one-third the size of traditional reactors. Because they are modular, they can be manufactured in a controlled factory environment and shipped to a site by truck or rail. For an investor, this shifts nuclear power from a mega-project with high risk to a repeatable product with predictable costs.

The Leaders in SMR Innovation: NuScale Power

NuScale is a primary player in the American SMR landscape. Their design was the first to receive certification from the Nuclear Regulatory Commission. By utilizing a simplified passive safety system, NuScale aims to provide dedicated power modules that can be added to a site as a data center expands.

NuScale Power Corporation (SMR +5.4%)

The Institutional Pivot: Oklo Inc.

Oklo focuses on microreactors, which are even smaller than standard SMRs. Backed by significant interest from the technology sector, Oklo’s business model involves selling energy-as-a-service. Instead of a tech company building its own reactor, it simply signs a contract with Oklo to buy the power generated by a micro-unit located nearby.

The Return of Big Nuclear: Constellation Energy

While new designs grab headlines, the existing nuclear fleet is being revitalized to meet AI demand. Constellation Energy, the largest operator of nuclear plants in the United States, recently made waves by announcing the restart of retired units specifically to feed the energy-hungry campuses of global technology firms.

Constellation Energy Corporation (CEG +6.03%)

The Economic Mandate: Decarbonization and Density

The shift to nuclear is not just about reliability; it is about meeting environmental goals. Most major technology firms have committed to becoming carbon-neutral. Because nuclear energy produces zero carbon emissions during operation, it allows these companies to scale their AI capabilities without increasing their environmental footprint.

Power Source	Capacity Factor (Consistency)	Carbon Emissions	Land Footprint
Nuclear (SMR)	92% – 95%	Zero	Minimal
Solar PV	20% – 30%	Zero	Extensive
Natural Gas	50% – 60%	High	Moderate

The Challenge: Regulatory Speed

The primary hurdle for the SMR market is the speed of government approval. While the technology is proven, the regulatory framework for modular deployment is still being refined. The companies that can navigate this bureaucracy most efficiently will likely be the ones to dominate the first wave of deployment.

To understand how this power is moved from the reactor to the machine, see Part 2: The Grid Evolution & Smart Infrastructure.

Conclusion

The nuclear renaissance is no longer a speculative idea; it is a physical necessity of the intelligence age. As SMRs move from design to deployment, they will provide the essential foundation for the next generation of global computing.