The end of AI is “high quality electricity”! The US Tennessee nuclear power project is about to be approved, and SMR commercialization will be further advanced

The Zhitong Finance App learned that the massive expansion of AI computing power demand is increasing the strategic value of continuous power supply capabilities, while small modular nuclear reaction (SMR) reactors are ushering in new regulatory developments. According to the latest official media notice from TVA (Tennessee River Basin Authority), the US Nuclear Regulatory Commission is expected to approve the construction of the first 300-megawatt BWRX-300 reactor at the Clinch River site in Tennessee on Tuesday; TVA is considering deploying up to four, but this license only involves the first unit.

The significance of the US government's latest positive move on nuclear power is that advanced nuclear power is gradually crossing the licensing threshold to create conditions for additional power generation capacity in the future; this expected approval is a construction permit, which does not yet mean that the unit can be put into commercial operation. The BWRX-300 is a small modular reactor (SMR). Specifically, it uses the boiling water reactor (BWR) technology route in light water reactors, with a single motor power of about 300 megawatts. Compared with traditional large-scale nuclear power plants, BWRX-300 and the wider SMR route have drastically reduced the amount of concrete and steel required per megawatt, and have the ability to be prefabricated at the factory and quickly assembled on site, greatly shortening the construction cycle.

From the perspective of underlying energy engineering, nuclear power supply, especially the SMR technology route, can be described as one of the most strategically valuable long-term power sources for AI data centers under large-scale construction. High-density AI GPU superclusters require uninterrupted power supply throughout the year, extremely high load rates, and strict power quality and clean environmental protection properties. Nuclear power has a typical capacity factor of more than 90%, extremely high fuel energy density, extremely low operating carbon emissions and decades of asset life required by tech giants, which can reduce the data center's dependence on weather, gas pipelines, and long-distance transmission.

Compared with traditional gigawatt nuclear power, the SMR nuclear power technology route can theoretically be deployed at a lower capital threshold for a single project, at the pace of expanding the data center from tens of megawatts to hundreds of megawatts, and close to load center construction; however, these cost advantages can only be established after entering the “N-seat same-type unit” batch replication stage. The first batch is probably the most expensive.

Big tech giants such as Meta, Google, Microsoft, and Amazon are increasingly turning to small modular reactor technology, which is still in the early stages of development, to meet the large-scale demand for efficient and clean electricity in data centers in the future; the Trump administration has also publicly supported the nuclear energy industry, promised to reduce burdensome regulations, and invest tens of billions of dollars to build new reactors and restart old ones that have been abandoned.

The Tennessee project welcomed key approval points, and large-scale SMR nuclear power moved from customer promises to scheduled delivery

Under the current global trend of low carbon and complete decarbonization for a long time to come, nuclear energy, an efficient and stable clean energy, has become the most popular energy source for tech giants such as Amazon, Google, and Microsoft in recent years. This energy, which combines clean, stable, and efficient properties, is expected to provide strong 24-hour uninterrupted power support for their immense data center. As a result, current support for nuclear energy and nuclear power plants by global politicians and technology companies is likely to be stronger than at any time since the 1970s.

An American regulator is about to approve the Tennessee River Basin Authority's proposal to build a small nuclear reactor. This is an important sign of progress in the nuclear fission industry.

The US Nuclear Regulatory Commission is expected to issue a construction permit on Tuesday to allow the agency to build a 300 megawatt unit at the Clinch River site west of Knoxville, Tennessee, according to a media notice issued by the Tennessee River Basin Authority. The Tennessee River Basin Authority is considering deploying up to four BWRX-300 reactors provided by GE Vernova Hitachi Nuclear Energy, but the license is only for the first unit, confirming Bloomberg News last week's news.

GE Vernova Hitachi Nuclear Energy is one of dozens of companies developing new, smaller reactors. The reactors are expected to be manufactured at the plant and then assembled on-site to reduce costs and construction time. However, this concept has yet to be verified. Currently, only two such reactors are under construction outside of China and Russia.

This will be the second construction license issued by the US for a small commercial modular reactor, after TerraPower received approval for a project in Wyoming in March. In Canada, the Ontario Power Generation Company began construction of the world's first BWRX-300 unit last year.

The end of AI is reliable, high-quality electricity: America's small nuclear reactors are moving towards construction

The US Nuclear Regulatory Commission is expected to approve the construction of the first 300 MW BWRX-300 reactor at its Clinch River site in Tennessee on Tuesday. The advanced SMR technology route nuclear power plant can be described as gradually crossing the licensing threshold, creating conditions for additional power generation capacity in the future.

Judging from the operating mechanism of the AI inference system, the agent extends a request to multiple rounds of model call, tool execution, and result verification, so that the GPU, CPU, memory, network, and cooling system share the load of continuous operation. As the user scale, task frequency, and concurrent volume expand, data centers need to ensure both power supply capacity and service continuity. Nuclear power therefore has three critical power attractions that surpass carbon emissions: continuing to provide large-scale electricity, reducing sensitivity to weather and short-term fossil fuel prices, and improving cost predictability through long-term power purchase arrangements.

Nuclear power can bear a stable base load, and power grids, energy storage, and backup power supplies work together to cope with maintenance and load fluctuations; this combination helps reduce the time that expensive computing power equipment is idle due to insufficient power supply. The US Department of Energy also lists continuous power supply, long replacement cycles, and relatively low fuel costs as the main advantages of combining nuclear power and data centers.

Tech giants, on the other hand, have begun to turn future demand for electricity into early financial support for nuclear power projects. The cooperation between Oklo, a new nuclear power force, and tech giant Meta involves a 1.2-gigawatt nuclear power park in Ohio. The agreement establishes a funding mechanism for prepayment of electricity bills and early development. The first phase targets to be launched as early as 2030. In terms of fuel, Oklo signed a letter of intent with Centrus in June to deliver HALEU fuel starting in 2029 to support the multi-year operating requirements of up to five Aurora units. The specific supply still needs to be implemented through a formal agreement. In August, Oklo's Groves low-power isotope test reactor reached its first critical state, accumulating construction and commissioning experience for subsequent projects; this progress is a different milestone from the commissioning of the Aurora commercial power generation project.

The so-called “reliable electricity premium” — that is, electricity that can be delivered on schedule and supports high-utilization computing power operations, is gaining higher commercial value. The BWRX-300 selected by TVA directly corresponds to GE Vernova and Hitachi's nuclear power business. It uses GNF2 fuel with an existing commercial supply base, which helps reduce delivery uncertainty caused by the development of new fuels. For investors, the SMR nuclear power technology route is critical to license promotion, fuel security, construction costs, and long-term power purchase arrangements to determine whether the enterprise can turn AI demand into cash flow. The modular construction of the small pile is expected to improve construction schedule and replication efficiency, and the actual cost and delivery performance of the first batch of projects will determine whether this advantage can form a sustainable return.