"Nuclear Tailwinds Are Blowing" - SMR Push Meets Hyperscaler Demand
Canaccord analyst James Bullen recently noted in a flash update, that oil shocks are proving supportive for nuclear power, which is often viewed as a “quasi-indigenous energy source”.
The report highlights the Department of Energy’s “Nuclear Dominance — 3 by 33” initiative as a significant step forward, targeting by 2033 a secure and cost-competitive domestic fuel supply chain, accelerated advanced reactor deployment with an emphasis on small modular reactors (SMRs), and the closure of the nuclear fuel cycle.
“The Consortium’s work comes at a pivotal time for nuclear energy growth in our country,” said Ted Garrish, Assistant Secretary of Nuclear Energy.
A substantial portion of the fuel chain development work outlined in the initiative is explicitly designed to support the rollout of next-generation SMRs. These factory-fabricated units are intended to offer faster deployment schedules and greater siting flexibility compared with conventional large-scale nuclear plants.
We have covered the SMR story in considerable detail over recent months, with analysis examining the real-world economics of SMRs along with persistent fuel supply bottlenecks, and subsequent reports tracking important licensing progress for leading developers such as Nano Nuclear and Oklo.
We also just reported on the “3 — 33” announcement from the Defense Production Act nuclear fuel consortium, underscoring how the latest DOE plan makes full use of that framework to better align workforce development, financing mechanisms, and broader innovation efforts across the sector.
On the physical construction side, TerraPower officially broke ground on its Kemmerer project in Wyoming on April 23. This marks the first US utility-scale advanced reactor project to move into active construction.
Hyperscalers are moving aggressively to secure reliable carbon-free power for their expanding AI data center operations. Notable agreements include Microsoft’s restart of the Three Mile Island facility in partnership with Constellation, Amazon’s pacts with Talen Energy at the Susquehanna site and with X-energy, Google’s collaboration involving Kairos Power SMR technology, and Meta’s multiple commitments that encompass both TerraPower and Oklo projects.
Adding to the domestic momentum, Duke Energy has begun the Environmental Impact Statement process for a new reactor at its Belews Creek site in North Carolina, keeping the ultimate reactor technology selection open at this stage.
Despite these encouraging policy and commercial signals, the tangible gap between ambition and actual deployment in the United States remains the widest on record, much to the benefit of China.
Stunning chart: the difference between reality and "national ambition" pic.twitter.com/KtINlnTPhm
— zerohedge (@zerohedge) April 23, 2026
Global nuclear capacity currently under construction stands at roughly 78 GW spread across 15 countries. China alone is responsible for nearly half of this activity and continues to deliver new units on efficient five-to-seven-year timelines, effectively carrying the global nuclear renaissance largely on its own shoulders.
By comparison, the United States currently has no new large-scale reactors under active construction, and advanced SMR deployments still account for only a tiny fraction of meaningful new gigawatts coming online.
China is demonstrating in real time what rapid, large-scale nuclear buildout actually looks like.
The combination of the DOE’s renewed focus on SMRs and fuel security, together with strong hyperscaler capital and incremental domestic advances such as the TerraPower groundbreaking and Duke’s planning efforts, gives the United States a credible opportunity to begin closing that gap.
The real question is whether Washington can convert high-level 60-day policy sprints into operational reactors on a timeline that matters.