nuclear-news

US and investors gambling on unproven nuclear technology, warn experts

 The US government and investors have made a $9bn gamble on small nuclear
reactors to power the AI boom and lower emissions — but experts warn the
technology could prove too costly to be viable.

Data compiled by the FT
shows that since 2019, government agencies including the energy and defence
departments have committed over $6bn to developers of small modular
reactors (SMRs) through awards, loans and cost sharing agreements. Private
investment has also soared, with over $3bn raised in the same timeframe.

The technology promises a one-stop solution to data centres’ power needs
by providing clean, reliable and cheap electricity for companies to train
and run their AI models. Investor enthusiasm has lifted the share prices
and valuations of companies with little or no revenues or operating
projects.

“There’s a lot of cheerleading happening, but the amount of
capital that you need to cross the finish line is huge,” said Chris
Gadomski, head of nuclear research at BloombergNEF, which estimates data
centre power needs will more than double by 2035. “What I see happening
with SMRs and data centres reminds me of the internet boom and bust of the
early 2000s.”

 FT 5th Oct 2025, https://www.ft.com/content/8a18e722-3efa-404e-9f2a-709eed877f18

October 8, 2025 - Posted by Christina Macpherson | business and costs, Small Modular Nuclear Reactors