Small modular reactors (SMRs) are seen as the key to expanding nuclear power in the U.S., according to a recent report by the Information Technology and Innovation Foundation (ITIF). The report emphasizes the need for urgent action to deploy SMRs to prevent countries like China and Russia from dominating the market.
Robin Gaster, the research director at ITIF's Center for Clean Energy Innovation and author of the report, stated, “We’re at a critical juncture. SMRs have the potential to do what large reactors never could: achieve cost parity and scale. But potential isn’t enough. Without a focused push that includes clear regulatory pathways, smarter public-private partnerships, and bold federal investment, the U.S. will cede this market to geopolitical competitors who are moving faster and thinking bigger.”
Designed for modular, factory-based production, SMRs are expected to reduce costs, speed up production times, and be applicable across various markets. Their ability to offer round-the-clock reliable energy is especially appealing to data centers.
Moreover, SMRs aim to match the price and performance of fossil fuels—an achievement large reactors have not reached. By standardizing and increasing production, they could see declines in costs similar to those observed in other technologies like solar energy. This is crucial for acceptance, particularly in low-income countries where costly clean energy is not practical.
Major tech firms, such as Amazon, Google, and Microsoft, are already investing in SMR projects to meet their AI data centers' rising energy needs. With increasing interconnection delays and grid limitations, SMRs could provide tailored solutions that bypass traditional energy infrastructure challenges.
The report recommends several actions for policymakers to support SMRs, including expanding research funding, increasing support for testing and certification, and prioritizing first-of-a-kind deployment funding. Reforming the DOE Loan Program Office, streamlining Nuclear Regulatory Commission processes, and coordinating international standards were also advised.
“If the United States intends to lead in nuclear energy, we must commit decisively to small modular reactors now,” Gaster noted. “Any delay risks ceding not only energy innovation but economic and geopolitical leadership to global competitors. The clock is ticking—and China and Russia aren't waiting.”
Contact for more information: Austin Slater, [email protected]