By 2027, data centers in the U.S. could demand 66 gigawatts (GW) of electricity. This surge is being driven by the growing reliance on artificial intelligence (AI). As major tech firms expand their cloud infrastructure, they are turning to nuclear energy to supply the consistent, high-output power required to run these facilities. Giants like Alphabet, Amazon, Meta Platforms, and Microsoft have already begun locking in long-term energy deals with nuclear providers.
NuScale Power, listed on the New York Stock Exchange under the ticker SMR, is making waves in the nuclear energy industry. The company has secured a key regulatory milestone by receiving Standard Design Approval from the U.S. Nuclear Regulatory Commission (NRC). This approval covers both its 50-megawatt (MW) and 77 MW small modular reactor (SMR) designs. These reactors, which are smaller and more flexible than traditional nuclear plants, place NuScale in a unique position in the race to deploy next-generation nuclear technology.
Constellation Energy's current operations
The company operates 21 commercial reactors across 12 separate locations. Recently, Constellation has made major strides in securing long-term energy contracts. In 2024, it announced a 20-year power purchase agreement with Microsoft for a new clean energy center, and in 2023, it finalized a similar deal with Meta Platforms to supply 1,121 MW of energy. These agreements are set to begin delivering power to the respective companies by 2027 and 2028.
Nuclear and AI demand
The need for energy to power artificial intelligence (AI) is growing rapidly. Training large AI models requires thousands of high-performance GPUs that operate for extended periods. Additionally, the systems used to cool these servers consume massive amounts of energy. According to Bank of America, data centers could contribute 125 GW to the U.S. electricity demand by 2030. Nuclear energy, which offers nonstop, high-density power, is becoming the preferred option for hyperscalers needing reliable, uninterrupted energy.
Long-term vs. near-term energy planning
While NuScale Power continues to push the boundaries of nuclear technology, its projects remain several years from commercial operation. The company plans to begin construction of its first operational plant in Romania in 2033, following a final investment decision backed by both its shareholders and the government. In contrast, Constellation Energy is already working on projects that will start producing energy within the next few years. This creates a key difference in the investment landscape: investors must weigh the long-term potential of NuScale's innovations against the current, reliable output of Constellation's established operations.
In addition to its Romanian project, NuScale is also in talks with the Tennessee Valley Authority (TVA) to deploy a massive 6 GW of its reactor modules. The company is working with ENTRA1 to secure a firm power purchase agreement. If finalized, this would represent a major step forward in the commercialization of SMRs and could significantly expand NuScale's reach in the U.S. market.
Meanwhile, Constellation Energy continues to solidify its position as the dominant nuclear energy provider in the U.S. The company has already begun preparations for the restart of the Three Mile Island Unit 1, which is part of its 20-year agreement with Microsoft. It also plans to launch the Crane Clean Energy Center in 2028. These projects will help meet the growing energy needs of large technology firms while supporting long-term carbon-reduction goals.
The nuclear energy market is at a pivotal moment. With AI and data center demand rising, both companies are poised to benefit. NuScale's advanced reactor design gives it a strategic advantage in the future of nuclear energy, but its timeline remains long. Constellation, on the other hand, is already in the process of scaling up production and securing contracts. Investors have a clear choice to make: bet on the future or go with the present.