### Tech Giants Invest in Small Modular Reactors Amid Continuing Skepticism

Small modular reactors (SMRs) have been championed for their potential to revolutionize nuclear energy with promises of reduced costs and greater efficiency. Recently, interest in these reactors has surged, especially from tech giants like Google and Amazon, which are seeking sustainable solutions to power their data centers and ambitious AI projects. Despite this growing enthusiasm, significant doubts remain about the viability of SMRs, as no commercial SMR has yet been constructed in the United States.

Currently, only three SMRs are operational globally—two in Russia and one in China. Critics such as David Schlissel of the Institute for Energy Economics and Financial Analysis argue that the timeline for building these reactors remains uncertain, with estimates ranging from 10 to 15 years, and potential costs still unknown. This uncertainty has led some to question whether SMRs can effectively contribute to combating climate change within a meaningful timeframe.

Nuclear power has seen a resurgence in interest as the world seeks to reduce fossil fuel dependence and curb climate change. While wind and solar technologies provide low-cost energy alternatives, nuclear power remains attractive due to its ability to operate continuously throughout the year and its comparatively smaller environmental footprint. Traditional nuclear plants, however, have historically been plagued by high costs and lengthy build times, problems that SMRs are designed to overcome by being smaller and factory-built.

NuScale, a company based in Oregon, was the first to receive permission from the Nuclear Regulatory Commission to construct SMRs in 2022. Nonetheless, it canceled plans for a six-reactor project in Idaho following a dramatic rise in projected costs from $5 billion to $9 billion. MIT nuclear engineering professor Jacopo Buongiorno noted that the challenge lies in the diverse technologies being tested, causing further delays and cost surges.

The tech sector's burgeoning demand for energy—fueled by the rapid development of artificial intelligence (AI)—has shifted the energy landscape. Goldman Sachs predicts that AI could drive a 160% increase in data center power demand by 2030. In response, Amazon recently invested $500 million in SMR development, including funding for X-energy to complete its standard plant design and construct a fuel manufacturing facility. X-energy's CEO, Clay Sell, called this investment a "game changer," emphasizing that a considerable portion of future electricity demand in the U.S. may come from AI, possibly up to 20%.

Kairos Power, which has partnered with Google, is still in the experimental stage with its SMR technology. CEO Mike Laufer emphasized that achieving cost certainty hinges on successful demonstrations and in-house manufacturing capabilities. Additional challenges, including lengthy regulatory processes and nuclear waste management, further complicate the landscape. A Stanford University study even suggests that SMRs could substantially increase the volume of nuclear waste, contrary to industry hopes.

Despite the contentious debate, proponents like Buongiorno maintain that SMRs have a longer operational life span, potentially up to 100 years, justifying the higher upfront costs with long-term benefits. The Department of Energy underscores nuclear energy's critical role in the transition away from fossil fuels, allocating $900 million for SMR development. By 2050, the U.S. may need an additional 700-900 GW of clean power generation capacity to achieve net-zero emissions, and nuclear energy currently supplies nearly half of the country's carbon-free electricity.

As tech giants and policymakers place their bets on SMRs, the debate over their cost, efficiency, and environmental impact continues to unfold.