Can Nuclear Power Meet Data Center Demand?

SMRs, existing plants, and the realistic timeline for nuclear-powered data centers.

Nuclear power has emerged as the most compelling solution to the data center industry's power dilemma. It offers 24/7 carbon-free electricity at a capacity factor exceeding 92% — far superior to solar (20–25%) or wind (30–40%). For hyperscalers with net-zero commitments and insatiable power demands, the nuclear option is increasingly difficult to ignore.

But the question is not whether nuclear technically can power data centers. It is whether new nuclear capacity can be deployed fast enough, at a competitive cost, and at the gigawatt scale that the industry requires. This article examines the real state of nuclear-powered data centers in mid-2026.

Three Paths to Nuclear-Powered Data Centers

The nuclear-data center convergence is following three distinct pathways, each with different timelines, costs, and risk profiles.

Path 1: Power Purchase Agreements from Existing Plants

The fastest and most mature pathway. Hyperscalers are signing long-term PPAs directly with existing nuclear power plants, often structured as "behind-the-meter" or "subscribed power" arrangements that keep the financial lights on for aging reactors.

• Talen Energy / Susquehanna (PA): Amazon Web Services acquired a 960 MW data center campus powered directly by the Susquehanna nuclear plant in a landmark $650 million deal in 2024. The arrangement includes a 10-year PPA for 480 MW from the plant, with an option for 180 MW more. FERC approval was a multi-year saga, resolved only after significant legal maneuvering.
• Constellation / Microsoft (IL): In 2025, Microsoft signed a 24/7 carbon-free energy matching agreement with Constellation Energy, effectively consuming power from the Byron and Braidwood nuclear stations in Illinois to cover its data center load.
• Palisades Restart (MI): Holtec International is pursuing the first-ever restart of a retired nuclear reactor, with plans to provide power to a co-located data center campus. The 800 MW Palisades plant, shuttered in 2022, has received a $1.5 billion Department of Energy loan and targets restart by late 2026 or early 2027.

Timeline: Already happening. Existing nuclear PPAs can be signed in 6–12 months. Behind-the-meter co-location takes 2–4 years for substation and transmission upgrades.

Path 2: Small Modular Reactors (SMRs)

SMRs — reactors with capacities of 50–300 MW that can be factory-fabricated and assembled on-site — are the most hyped nuclear technology in the data center space. But commercialization remains elusive.

• NuScale Power: The US leader in SMR design saw its flagship Carbon Free Power Project (CFPP) in Idaho cancelled in late 2023 after projected costs rose to $89/MWh — too expensive for the project's municipal utility partners. NuScale's VOYGR design (77 MW per module) continues through regulatory processes, and the company has signed MOU agreements with multiple data center developers, but no shovel-ready projects exist as of mid-2026.
• GE Hitachi / Ontario Power Generation: The BWRX-300 (300 MW SMR) at Ontario Power Generation's Darlington site is arguably the most advanced SMR project in North America. Construction on the first unit is expected to begin in 2026–2027, with commercial operation targeted for the early 2030s.
• Kairos Power: This California-based developer received a construction permit from the NRC for its Hermes demonstration reactor in 2024. The fluoride salt-cooled, pebble-bed design is novel but years from commercial deployment.
• Standard Power / NuScale (Ohio): A proposed 924 MW SMR-powered data center campus in Coshocton, Ohio — tracked on our projects page — was announced in 2023 but has seen limited visible progress. The project envisions 12 NuScale VOYGR modules powering a co-located data center.

Timeline: 5–10 years. The first commercial SMRs in North America are unlikely to deliver power before 2032–2035. Regulatory hurdles, first-of-a-kind costs, and supply chain immaturity all contribute to the extended timeline.

Path 3: Co-Location and Dedicated Nuclear Development

The most ambitious pathway involves hyperscalers directly investing in new nuclear capacity. This includes both SMR deployment and, in some cases, restarting or extending large reactor operations.

• Microsoft / Palisades Restart: As noted above, Palisades' potential restart represents a hybrid model — a large reactor (800 MW) being recommissioned specifically to serve data center and grid load.
• Amazon / Energy Northwest (WA): Amazon invested directly in Energy Northwest's feasibility study for an SMR project at the Columbia Generating Station site in Washington. Amazon has right of first refusal for the power output.
• Google / Fervo Energy (geothermal, not nuclear): Google's focus has been on geothermal rather than nuclear, but the principle is the same — direct investment in firm, carbon-free generation to power data centers.

Timeline: 5–8 years for SMR co-location projects. Large reactor restarts could happen within 2–4 years.

The Cost Question

Nuclear power's biggest challenge is cost. The levelized cost of energy (LCOE) for new nuclear in the US ranges from $100–$180/MWh, compared to $30–$60/MWh for solar and wind (without storage) and $40–$80/MWh for combined-cycle natural gas. However, for data center operators, the comparison is not straightforward:

• Nuclear's 24/7 availability eliminates the need for battery storage or backup gas plants that intermittent renewables require
• Nuclear's long operational life (60–80 years) aligns with data center depreciation timelines
• The cost of a data center outage during a renewable generation shortfall can easily exceed the premium paid for nuclear power
• Regulatory and permitting costs add 3–5 years of carrying cost before any revenue is generated

When these factors are included in a full-cost comparison, nuclear can be competitive — especially for hyperscalers who value reliability and carbon-free attributes above pure price.

Regulatory and Licensing Timeline

The Nuclear Regulatory Commission (NRC) licensing process is a critical bottleneck. A new large reactor typically requires 4–6 years of licensing before construction can begin. For SMRs, the NRC has been working on a "generic" licensing framework that would allow designs to be pre-approved before site-specific applications, but progress has been slow:

• NuScale's SMR design was approved by the NRC in early 2023 — a first-of-its-kind certification
• GE Hitachi's BWRX-300 is in the pre-application phase, with design certification expected in 2027–2028
• Kairos Power received a construction permit for its non-power Hermes test reactor but still needs a commercial operating license

The NRC has committed to streamlining reviews for advanced reactors, but the agency's resources and staffing are limiting factors.

What's Realistic?

Based on our tracking of nuclear-data center developments on DataPowerDemand, here is a realistic timeline:

• 2026–2028: Existing nuclear PPAs proliferate. At least 3–5 major hyperscaler nuclear PPAs are likely signed. The Palisades restart may begin delivering power. Behind-the-meter co-location with existing nuclear plants becomes an established model.
• 2028–2032: First SMR construction begins at data center-adjacent sites. NRC licensing for multiple SMR designs is completed. First-of-a-kind SMR costs remain high ($120–$180/MWh).
• 2032–2035: First commercial SMRs begin delivering power to data centers. Manufacturing learning curves begin to reduce costs. The model begins to scale.
• 2035+: Nuclear-powered data centers become a standard option in regions with suitable regulatory environments and grid needs.

Key Takeaways

• Existing nuclear PPAs are the fastest path — happening today with Talen, Constellation, and Microsoft deals
• SMRs are 5–10 years from meaningful commercial deployment for data centers
• Regulatory licensing is a 4–6 year bottleneck for new nuclear designs
• Nuclear LCOE ($100–$180/MWh) commands a premium over renewables but offers unmatched reliability
• The Palisades restart ($1.5B DOE loan) is the most advanced data center-adjacent nuclear project
• Hyperscaler direct investment in nuclear is growing but still early-stage