NuScale Power Corporation SMR is benefiting from the rising energy demands of data centers, particularly those supporting advanced artificial intelligence systems. The increasing energy demand, driven by sectors like data centers, which require continuous, reliable, and carbon-free energy, has been a major growth driver.
Data centers are expected to triple their energy use over the next three years, accounting for 12% of U.S. electricity consumption by 2028. This growth trend presents a significant opportunity for NuScale Power, as its small modular reactor (SMR) technology offers consistent, carbon-free energy that can meet the increasing demands of hyperscale data centers.
NuScale Power continues to attract strong interest from major technology companies and infrastructure capital. Companies like Meta Platforms, Microsoft, Alphabet and Oracle have made substantial commitments to using nuclear energy, including SMR technology, to meet their sustainability goals, which positively impacts NuScale Power’s market positioning.
Microsoft’s commitment to nuclear energy has further validated the demand for SMR technology in powering data centers and heavy industries. Companies like Google and Oracle are also showing interest in using SMR technology for large-scale data centers, reinforcing the growing trend toward nuclear solutions for energy-intensive tech operations.
With its NRC-approved designs, established manufacturing ecosystem, and strategic partnership with ENTRA1, NuScale Power is well-positioned to support the energy needs of data centers globally.
SMR faces stiff competition in the nuclear energy industry from companies such as Oklo OKLO and Constellation Energy CEG.
OKLO’s expanding clientele has been noteworthy. In June 2025, Oklo announced a collaboration with Vertiv to co-develop advanced power and thermal management solutions for hyperscale and colocation data centers. The collaboration will use Oklo’s onsite nuclear power plants with Vertiv’s thermal management systems to deliver highly efficient, resilient, and sustainable data center operations.
Constellation Energy is benefiting from the rising energy demands, driven by the expansion of data centers. Recently, Meta signed a 20-year power purchase agreement with Constellation Energy to supply nuclear power to its growing AI data centers in Illinois. Beginning in 2027, this agreement will ensure a steady supply of clean energy. This will help Meta grow its AI operations and cut carbon emissions.
SMR shares have surged 86.8% in the year-to-date period, outperforming the Zacks Computer & Technology sector’s appreciation of 10.8% and the Zacks Electronics- Power Generation industry’s rise of 84.6%.