The US government and investors have made a $9 billion gamble on small nuclear reactors to power the AI boom and lower emissions — but experts warn the technology could prove too costly to be viable. Data compiled by the FT shows that since 2019, government agencies including the energy and defence departments have committed over $6 billion to developers of small modular reactors (SMRs) through awards, loans and cost sharing agreements. Private investment has also soared, with over $3 billion raised in the same timeframe. The technology promises a one-stop solution to data centres’ power needs by providing clean, reliable and cheap electricity for companies to train and run their AI models. Investor enthusiasm has lifted the share prices and valuations of companies with little or no revenues or operating projects. “There’s a lot of cheerleading happening, but the amount of capital that you need to cross the finish line is huge,” said Chris Gadomski, head of nuclear research at BloombergNEF, which estimates data centre power needs will more than double by 2035.

Full commentary : A look at cost and viability concerns over small nuclear reactors in the US, as the government, companies, and investors bet $ billion+ on SMRs to power the AI boom.