Fort Worth-based Paragon Energy Solutions has been awarded a significant contract to complete the final design of critical safety systems for NuScale Power's small modular reactors (SMRs), marking a major milestone as the nuclear industry races to deploy compact, scalable reactor technology to power AI data centers and other energy-intensive operations. The contract represents years of collaboration between the two companies and underscores the growing role of advanced safety systems in next-generation nuclear power plants.

What Makes NuScale's Reactor Design Stand Out?

NuScale Power holds a unique distinction: it operates the first and only small modular reactor design currently approved by the U.S. Nuclear Regulatory Commission (NRC). Unlike traditional large nuclear plants that generate over 1,000 megawatts, NuScale's Power Modules (NPMs) are designed to produce up to 77 megawatts each, allowing utilities to deploy multiple units at a single site. A nuclear plant using NuScale technology can operate up to 12 modules from a single control room, providing flexibility that appeals to utilities and industrial customers seeking carbon-free power without massive upfront capital investments.

The company has already begun manufacturing components for 12 power modules, signaling confidence in near-term deployment. This progress comes as the nuclear industry positions itself as a critical solution to the energy demands of artificial intelligence infrastructure, which is straining electrical grids across North America.

What Safety Systems Is Paragon Developing?

Paragon, which was acquired by Atlanta-based Mirion Technologies in September 2025 for $585 million, specializes in safety-related products and components for the nuclear industry. Under the new contract, Paragon will complete the final design and engineering work on three critical instrumentation and control systems built on its Highly Integrated Protection System (HIPS) platform.

• Module Protection System (MPS): A nuclear safety-related reactor protection system that safeguards each individual NuScale Power Module by monitoring critical parameters and triggering automatic shutdown if needed.
• Safety Data Interface System (SDIS): An augmented quality post-accident monitoring system that provides operators with essential plant data in the event of an incident, ensuring informed decision-making during emergencies.
• Plant Protection System (PPS): A non-safety-related system responsible for control room habitability functions such as heating, ventilation, and air conditioning to maintain safe working conditions for operators.

The contract also includes Independent Verification and Validation services for the Module Protection System, an important regulatory step that qualifies safety-critical software for nuclear applications. Paragon designed HIPS to meet modern cybersecurity requirements and the complexity of next-generation reactor designs, delivering analog-like reliability while incorporating modern diagnostics that reduce maintenance costs.

"The work we're doing on MPS, SDIS, and PPS is foundational to bringing the first SMR of its kind into operation, and there is no greater validation of our technology than being entrusted with the safety-critical systems of the most significant new reactor design in a generation," said Doug Van Tassell, President and CEO of Paragon Energy Solutions.

Doug Van Tassell, President and CEO of Paragon Energy Solutions

Why Does This Matter for AI's Energy Future?

The timing of this contract reflects a broader shift in how technology companies are approaching their energy needs. AI data centers consume enormous amounts of electricity, and the interconnection queues for grid access now stretch five to seven years, creating a bottleneck for hyperscalers like Microsoft, Google, and Amazon. In response, these companies are increasingly turning to nuclear power purchase agreements as a way to secure reliable, carbon-free electricity without waiting for traditional grid infrastructure upgrades.

Microsoft has already executed power purchase agreements covering more than 10.5 gigawatts of new capacity, including the restart of Three Mile Island Unit 1 through Constellation Energy. Google has signed agreements with Kairos Power for small modular reactor deployment beginning in 2030. These commitments signal that SMRs are no longer theoretical; they are becoming a practical solution to the energy crisis facing the AI industry.

"Paragon has been a valuable technology partner in the development of the HIPS technology, advancing the digital instrumentation and control systems that are essential to safe and reliable plant operations," said John Hopkins, NuScale Power's President and CEO. "This partnership helps us to achieve the goal of delivering reliable, carbon-free power to our customers while ensuring the highest level of safety."

John Hopkins, President and CEO of NuScale Power

How Does HIPS Technology Streamline Nuclear Development?

Paragon's Highly Integrated Protection System uses Model-Based Design to integrate system behavior and design documentation into a single environment, streamlining development and regulatory review. This approach has already proven its value: the NRC approved Paragon's topical report in 2017, which was co-developed with NuScale. By consolidating design and documentation, HIPS reduces the time and complexity of bringing new reactor designs through the regulatory approval process, a critical advantage as the nuclear industry races to meet AI's energy demands.

The architecture of HIPS can be configured from a single channel up to a full four-division Reactor Protection System, providing flexibility for different reactor designs and operational requirements. This modularity is particularly valuable for small modular reactors, which may be deployed in diverse settings from industrial facilities to remote locations.

What's Next for NuScale and Paragon?

The contract award marks a significant step toward commercialization of NuScale's technology. With components already in production for 12 power modules and final design work now underway, the company is positioning itself to begin deployment in the coming years. The partnership between Paragon and NuScale demonstrates how specialized nuclear technology suppliers are becoming essential partners in the race to build a new generation of clean energy infrastructure capable of powering the AI economy.

As data center electricity demand is projected to reach 12 percent of total U.S. consumption by 2028, up from roughly 4 percent in 2023, the role of small modular reactors in meeting this demand will only grow. Paragon's work on safety systems for NuScale's reactors represents a critical piece of the infrastructure puzzle that will determine whether AI companies can secure the reliable, carbon-free power they need to continue their expansion.