Small modular reactors (SMRs) are emerging as a potential solution to the energy crisis created by artificial intelligence, with major infrastructure operators and technology companies exploring how nuclear power could fuel the next generation of data centers and industrial facilities. The shift reflects a fundamental challenge: AI's explosive growth is straining electrical grids designed for a much slower pace of demand, and conventional nuclear plants take a decade or longer to build. SMRs promise faster deployment and lower upfront costs, making them attractive to companies desperate for reliable power.

What Makes Small Modular Reactors Different from Traditional Nuclear Plants?

Small modular reactors differ fundamentally from the massive nuclear facilities that have powered grids for decades. Unlike conventional plants that require 10 or more years to construct, SMRs are designed to be built faster, deployed in smaller increments, and scaled up as demand grows. The technology appeals to port operators, data center developers, and industrial facilities that need reliable, low-carbon electricity without waiting years for traditional infrastructure to come online.

DP World, one of the world's largest port operators, is taking this vision seriously. The company recently signed an agreement with France's Commissariat à l'Energie Atomique et aux Energies Alternatives (CEA), a leading nuclear research organization, and strategy firm TerraWater Institute to study how SMRs could meet the long-term energy needs of the Port of Constanța in Romania. The feasibility study will model projected energy demand from 2030 to 2050 and evaluate the technical, strategic, and economic viability of nuclear-based solutions for port operations.

"DP World sees the transition to a net zero economy not only as an environmental imperative, but as a driver of future growth across global trade. Nuclear SMRs are not just energy projects for our ports, they are a competitive infrastructure differentiator," said Nicholas Mazzei, VP Sustainability at DP World.

Nicholas Mazzei, VP Sustainability, DP World

Why Is AI Driving Demand for Nuclear Power?

The connection between artificial intelligence and nuclear energy stems from a simple reality: AI systems consume enormous amounts of electricity. Data centers running AI models must operate continuously, processing computationally complex tasks while simultaneously cooling graphics processing units (GPUs) to prevent overheating and maintain performance. From 2000 to 2020, electricity demand in the United States barely increased, but AI is changing that trajectory dramatically.

According to research from McKinsey and Company cited in recent analysis, "Capital is pouring into data center development, but there are real constraints on growth." The biggest constraint? "Incumbents can't meet demand for power". The current electrical grid simply wasn't designed to handle the year-after-year surge in demand that AI infrastructure requires. This gap between supply and demand has created urgency around alternative energy sources, and nuclear power stands out as a reliable, carbon-free option.

DP World's study explicitly acknowledges this connection, noting that rising demand from electrified equipment, shore power, AI data centers, residential heating, and industrial activity is placing greater pressure on existing energy systems. For ports competing globally, access to stable, low-carbon energy has become a strategic advantage.

How to Evaluate SMR Investments and Deployment Timelines

• Track Commercialization Progress: NuScale Power, the leading SMR developer, has never successfully commercialized an SMR system, meaning investors should monitor when the company delivers its first operational reactor and begins generating meaningful revenue.
• Monitor Shareholder Dilution: NuScale has doubled its shares outstanding over the past 12 months and sold 39.3 million shares in the fourth quarter of 2025 alone, raising $750 million in capital. Investors should track whether dilution continues to outpace revenue growth.
• Assess Regulatory and Permitting Timelines: Even with faster construction timelines than conventional reactors, SMRs still require regulatory approval and community engagement. DP World's study explicitly includes safety assessments and stakeholder engagement as prerequisites for any future development.
• Compare Revenue Against Operating Losses: NuScale reported just $31.5 million in sales last year against a net loss of roughly $355 million, more than $100 million greater than the prior year. Investors should evaluate when the company expects to reach profitability.

What Are the Financial Realities for SMR Companies?

NuScale Power's stock has recovered 30 percent over the past two weeks, but remains 75 percent cheaper than its all-time highs set last summer. The company's financial picture reveals the tension between massive long-term opportunity and near-term execution challenges. While the global SMR market could eventually represent a $10 trillion opportunity due to rising electricity demand from AI and renewed nuclear interest, NuScale's path to profitability remains uncertain.

The company's losses have accelerated, jumping from roughly $255 million in the prior year to $355 million last year, even as revenue remained minimal. To fund operations, management has been forced to issue new shares at an accelerating pace. This pattern of shareholder dilution is likely to continue until NuScale successfully deploys its first commercial SMR and begins generating substantial revenue.

"NuScale's story won't be written over a matter of weeks, or even months," according to recent investment analysis. The company is targeting what some experts believe will be a $10 trillion global opportunity due to rising electricity demand from artificial intelligence technologies and a resurgence of interest in nuclear energy.

Investment Analysis, Motley Fool

What Happens Next for SMR Deployment?

DP World's feasibility study at the Port of Constanța represents one of several initiatives exploring SMR deployment across Europe. The company signed a memorandum of understanding last year to explore nuclear energy in its UK ports as well. These studies are intended to inform future decision-making, but any actual development would require further technical assessment, regulatory review, and stakeholder engagement.

For investors and industry observers, the critical question is timing. NuScale and other SMR developers face a paradox: the market opportunity is enormous and growing, but the path from research and development to commercial operation remains years away. Companies like DP World are preparing infrastructure and conducting feasibility studies now, but actual deployment depends on whether SMR manufacturers can deliver on their promises of faster, cheaper construction and reliable operation.

Romania's long-standing experience with nuclear energy and strong focus on energy security make it an attractive location for SMR pilots. If DP World's study demonstrates technical and economic viability, the Port of Constanța could become a proof-of-concept for how nuclear power supports the infrastructure demands of the AI era. Until then, the SMR sector remains a high-risk, high-reward bet on whether emerging technology can solve a genuine and urgent problem.