The nuclear industry is changing faster than the rules that govern it, forcing U.S. regulators to fundamentally rethink how they approach safety and licensing. For decades, the Nuclear Regulatory Commission (NRC) focused on massive, stationary reactors built in one location and operated for 50 to 60 years. Now, small modular reactors (SMRs), transportable units, and floating nuclear plants are moving from concept to construction, requiring regulators to develop entirely new frameworks for oversight.

The shift is urgent. Construction has already begun on Ontario's Darlington New Nuclear Project, which will feature four 300-megawatt GE Vernova BWRX-300 reactors. The first unit is targeted for operation by 2030, marking the first commercial grid-scale SMR deployment in a Western country. Meanwhile, tech giants including Google, Amazon, Microsoft, and Meta are ordering SMRs to power their data centers, accelerating demand for these smaller, cleaner reactors.

What's Driving the NRC's Reorganization?

Anna Bradford, director of the Office of Nuclear Reactor Regulation at the NRC, recently returned from the International Atomic Energy Agency (IAEA), a United Nations organization that sets international nuclear safety standards. Her experience abroad revealed a critical insight: nuclear safety requirements are remarkably consistent across countries, but the technologies being deployed are not.

"I think we need to be careful not to be insular and think that our way is the only way because it is not," said Anna Bradford, director of the Office of Nuclear Reactor Regulation at the NRC.

Anna Bradford, Director of the Office of Nuclear Reactor Regulation, Nuclear Regulatory Commission

The NRC is reorganizing to align its structure with how nuclear technology is actually evolving. Bradford's office will focus exclusively on overseeing operating reactors and security, while other offices handle licensing and permitting of new reactor designs. This separation allows the agency to stay focused on its core mission: protecting public health and safety.

How Are Regulators Adapting to New Reactor Designs?

The regulatory challenge is substantial. Thirty years ago, nuclear reactors were massive, stationary installations. Today, the industry is exploring transportable reactors small enough to fit on a pickup truck, floating nuclear plants for offshore deployment, and units designed to power cargo ships. Each design introduces new technical and security considerations that traditional regulatory frameworks were not built to address.

The NRC is moving toward what Bradford describes as a more performance-based approach to regulation. Rather than applying one-size-fits-all rules, regulators will evaluate whether each reactor design meets safety and security objectives, regardless of its size or location. This flexibility is essential because SMRs operate under fundamentally different conditions than conventional reactors.

The international dimension adds another layer of complexity. SMRs are being developed and deployed globally, with commercial units already operating in Russia and China. Argentina has a pilot under construction, and governments across North America, South America, Asia, and Europe are advancing SMR projects. The business model has become international, meaning regulators must consider not just domestic deployment but also the movement of these reactors across borders.

What Are the Key Regulatory Challenges for SMRs?

• Limited Historical Data: SMRs have minimal operational history compared to conventional reactors, making it difficult to predict long-term safety and performance risks.
• Evolving Supply Chains: SMR deployment depends on specialized supply chains that are still being established, introducing uncertainty around component quality and availability.
• Cross-Border Movement: Unlike traditional reactors, SMRs may be transported between locations or countries, requiring new security and regulatory protocols.
• Diverse Applications: SMRs are being designed for power generation, industrial heat, remote communities, data centers, and maritime use, each requiring tailored safety assessments.
• Insurance and Risk Transfer: Insurance companies are still developing pricing models and coverage frameworks for SMR projects, which lack historical loss data.

Why Does This Matter for AI and Data Centers?

The convergence of SMR development and artificial intelligence is reshaping energy infrastructure. Tech companies are investing heavily in SMRs because AI data centers demand enormous amounts of stable, low-carbon power. Google has ordered seven SMRs, and Amazon, Microsoft, and Meta have followed suit. The sector hopes SMR technology will be available to power multiple data centers by the 2030s, as AI deployment accelerates.

This demand is driving the commercial timeline. The global SMR market is projected to reach $300 billion in revenue by 2046, with growth fueled by energy security concerns, data center demand, and net-zero climate targets. The NRC's reorganization is, in part, a response to this acceleration. Regulators must license and oversee these new reactors while maintaining safety oversight of aging conventional plants.

What's the Timeline for New SMR Deployments?

The pace of deployment is accelerating. Ontario's Darlington project is the most advanced, with the first 300-megawatt unit expected to begin operation by 2030. In the United States, the Department of Energy has announced up to $5.5 billion in funding for SMR development. TerraPower, backed by Bill Gates, broke ground on its first project in Wyoming in 2024 and is awaiting approval from the NRC, expected by the end of 2026.

Internationally, the UK government selected aerospace company Rolls-Royce as its preferred SMR developer, with over $800 million in financing. Rolls-Royce is developing its first SMR project at Wylfa on the island of Anglesey and has been chosen by Swedish developer Videberg Kraft to build SMRs in Sweden. France announced $1.1 billion to develop an SMR design, and the Netherlands-based startup Thorizon is building a 100-megawatt molten salt reactor expected to run by the mid-2030s.

The regulatory challenge is clear: the NRC and other agencies must develop and implement new frameworks fast enough to keep pace with deployment timelines, without compromising safety or security. Bradford's reorganization is a first step, but the real test will come as the first commercial SMRs begin operation and regulators gain real-world data on how these new designs perform.