Small modular reactors (SMRs) are quickly moving from concept to deployment as global electricity demand surges—driven in large part by the explosive growth of AI data centers. In 2024, data centers consumed about 415 terawatt-hours of electricity, roughly 1.5% of global demand, and usage is expected to climb roughly 15% per year through 2030.

Figure 1. Small Modular Reactors.

With power needs rising faster than supply, especially in the U.S., interest in nuclear energy is growing. Beyond restarting existing plants or building large reactors, companies and governments are now exploring SMRs—compact nuclear systems that can be factory-built, transported, and assembled on-site [1]. More than 80 SMR designs are in development worldwide, and the first demonstration units could break ground before 2030, followed by commercial deployment in the mid-2030s.

SMRs can generate up to 300 megawatts of electricity using passive safety systems and require significantly less space and fuel than traditional reactors. Supporters say they could deliver reliable, carbon-free power close to where it’s needed, reducing reliance on long-distance transmission networks. Figure 1 shows Small Modular Reactors.

However, regulatory frameworks, licensing, transportation rules, and long-term nuclear waste disposal remain major obstacles. The U.S., for instance, still lacks a permanent repository for spent fuel. Figure 1shows Small Modular Reactors.

Despite these challenges, momentum is building. Universities are planning microreactor test sites, and private companies—including major cloud and AI operators like Amazon—are exploring SMRs as a future power source. If successful, SMRs could become a critical tool for meeting rising energy demand while supporting a low-carbon future.

References:

1. https://interestingengineering.com/energy/small-modular-reactors-explained

Cite this article:

Keerthana S (2025), Explained: Small Modular Reactors and Their Role in Supporting Rising Global Power Demand, AnaTechMaz, pp.310