Glossary Term:

Small Modular Reactor (SMR)

Definition

A Small Modular Reactor (SMR) is a new generation of nuclear reactor designed to produce electricity using a smaller standardized design. Unlike traditional large nuclear facilities, SMRs are constructed in modules, which allows for faster deployment, lower upfront capital cost, and enhanced safety features. Because of this, SMRs can be installed in a wider range of locations and scaled based on demand, making them a flexible option for reliable, low-carbon power generation.


How It Applies to Data Centers

SMRs are becoming increasingly relevant to data-center operators because they offer stable, high-density, low-carbon energy that can be deployed closer to compute campuses. Furthermore, their modular structure allows operators to match power output to phased data-center expansions, therefore reducing stranded capacity and improving long-term cost predictability. Additionally, some regions are actively exploring SMR-powered digital infrastructure hubs, which could enable large AI, crypto, and quantum workloads to operate with near-zero downtime and extremely low carbon intensity. As a result, SMRs are viewed as a potential energy source for next-generation hyperscale and industrial compute environments.


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Additional Reading


FAQ

Q: What makes SMRs safer than traditional nuclear reactors?
A: SMRs often use passive safety systems. This means they rely on natural forces such as gravity, pressure, and convection rather than pumps or external power. Consequently, this reduces operational risk and enhances reliability.

Q: Why are SMRs attractive to data-center operators?
A: SMRs provide consistent baseload power, extremely low carbon emissions, and long-term price stability. Therefore, they align well with AI, crypto, and quantum workloads. Reason being is they require continuous, high-volume electricity.

Q: Can SMRs be co-located with data-center campuses?
A: Yes. Because SMRs have smaller footprints and modular designs, they can be sited closer to industrial loads, thereby reducing transmission losses and strengthening energy resilience.

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