As data center demand, especially from AI, cloud, and hyperscale operators, continues to surge, power has emerged as the single biggest constraint. Interconnection queues are years long, transmission upgrades are costly and slow, and regulators are pressuring operators to procure cleaner sources of energy. Against this backdrop, small modular reactors (SMRs) have entered the conversation as a potential long-term solution. Yet while nuclear headlines are multiplying, the reality of SMRs for U.S. data centers is far more nuanced.
Today, there are no SMR-powered data centers in operation in the United States. Every project is either still in licensing, in permitting, or in the earliest stages of development. The most optimistic timelines point toward the late 2020s, but the more realistic window is the early 2030s before SMRs make a meaningful contribution to data center energy portfolios. The Tennessee Valley Authority (TVA) is currently the frontrunner with its Clinch River project in Oak Ridge, Tennessee. TVA has submitted a construction permit application to the Nuclear Regulatory Commission (NRC) for a GE-Hitachi BWRX-300 SMR, making it the first U.S. utility to move that design through the licensing process. Clinch River already holds an Early Site Permit granted in 2019, which clears much of the environmental and siting groundwork. If approvals proceed smoothly, site preparation could begin as soon as 2026, though full operation will still take years of construction and commissioning beyond that.
Commercial players are also beginning to test the waters. Oklo has emerged as one of the most aggressive firms in this space, signing agreements that could eventually provide up to 750 MW of power to U.S. data centers. Its flagship “Aurora powerhouse” design is being marketed for on-site or near-site deployment in states such as Idaho, Ohio, Texas, and Wyoming. Equinix has leaned in heavily, agreeing to procure 500 MW from Oklo’s future fleet while also lining up deals with other advanced nuclear developers, including Radiant. These commitments are among the first serious attempts by a data center operator to hedge long-term energy needs with nuclear supply power.
Still, enormous bottlenecks remain. One of the most critical is fuel. Many SMR designs require high-assay, low-enriched uranium (HALEU), and domestic production is currently limited to pilot-scale output. Until HALEU production ramps up meaningfully, early units may be able to start up, but widespread deployment will remain constrained. On top of that, the NRC licensing process is inherently deliberate, with safety reviews, environmental impact assessments, and public hearings that take years, not months. Even with White House directives to accelerate licensing and fuel development, paperwork cannot compress construction cycles. SMRs also face practical challenges that rarely get airtime- they require access to water or alternative cooling strategies, significant land, transmission interconnection, and community buy-in – factors that many fiber-rich data center sites do not naturally offer.
For data center operators, the strategic takeaway is clear. Between now and the late 2020s, SMRs are not a viable option for new builds. The more realistic strategy is to focus on adjacency to existing nuclear assets where available, and to use renewables, storage, or natural gas as bridging solutions. By the early 2030s, however, the first wave of SMRs could be in play. Companies like Oklo, TVA, and NuScale will be in position to deliver power if licensing, fuel, and financing hurdles are cleared. Operators who want to take advantage of this future need to start laying the groundwork now. That means structuring conditional offtake agreements, negotiating conversion rights from gas to SMR, securing long-term site control, and addressing water, cooling, and transmission access early.
The Clinch River project illustrates how SMRs might eventually integrate into the grid, while Equinix’s commitments to Oklo demonstrate how commercial operators can start aligning themselves with advanced nuclear before it is physically online. The bottom line is that SMRs are real and moving forward, but they are not an immediate solution to the data center power crunch. They represent a credible 2030s play, not a 2025 one. The winners in this space will be the operators who treat SMRs as part of a staged, long-term procurement strategy rather than a quick fix.
At Network Environments, we help data center developers and operators cut through the noise to understand what is achievable and when. Whether it’s modeling procurement scenarios, analyzing site readiness, or negotiating the right contractual structures, our team delivers clarity in a market full of hype. Follow Network Environments on LinkedIn for ongoing insights into data center power infrastructure and reach out to our team directly if you’d like to explore how nuclear, renewables, or hybrid strategies can shape the future of your facilities.