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NuScale Power (NYSE: SMR) is a nuclear technology company with great ambitions. Simply put, it wants to disrupt the nuclear energy industry through the sale of small modular reactors (SMRs). These small reactors are designed to be deployed in groups of up to 12 modules with a total output of up to 924 megawatts of electricity.
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Unlike a traditional nuclear power plant, which could take a decade or more to complete, NuScale’s SMRs are designed to be assembled in a factory and shipped to project sites. This would not only reduce time and costs, but also make it easier to deploy nuclear power in places that lack the infrastructure for a traditional power plant.
Data centers, industrial sites, and AI facilities are potential customers for the kind of continuous power that an SMR can supply.
Of course, NuScale is not alone in the small nuclear reactor space. ok hey i Nuclear nanoenergy they are competing for the same business. But NuScale does first mover advantage: It is the only company that has an SMR design certified by the Nuclear Regulatory Commission.
First mover advantage is one thing, but landing a first customer is quite another, and right now, NuScale has yet to operate a reactor commercially. Although it is advancing projects in Romania and Tennessee, the lack of commercial revenue is still a concern.
Still, the company has policy tailwinds from the White House, which wants to quadruple US nuclear capacity in the coming decades. Electricity demands are also likely to increase (data centers are power hungry) and new energy technology like NuScale’s will be needed to make up for where the grid falls short.
NuScale has a market cap of $6 billion, which is significant for a company with minimal revenue today. But if it can start selling SMR at scale, the current valuation might look more reasonable in hindsight. Execution risks remain, but the urgency around power generation seems strong enough that NuScale’s technology likely has multiple chances to prove itself.
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