Nuclear energy could represent a $10 trillion market opportunity, he said Bank of America Research It’s not hard to imagine why. The United States is leading the world in developing one of the most powerful, energy-intensive technologies that history has ever seen — aka, artificial intelligence (AI). However, the power grid is largely unable to handle the power needs of these powerful machines and their data centers.
What AI data centers need is an energy source that is reliable and independent of the grid. Bank of America aptly names one of these sources Small Modular Reactors (SMRs). The power of NuScale (NYSE: SMR ) Currently leading the development of SMRs.
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SMRs are small nuclear reactors that can work together to produce adjustable amounts of electricity. These are typically prefabricated in a factory — which reduces assembly time — and can serve as “mini-power plants” to provide clean, reliable electricity.
Several startups are working to develop SMRs. However, NuScale is the only US nuclear power company that has regulatory approval for an SMR design. Since the setup process is usually long, NuScale has a clear head start over the competition Oklo.
There is currently limited demand for these reactors, and NuScale is working to match their needs. For example, NuScale has a contract with the Tennessee Valley Authority (TVA) to deploy up to 6 gigawatts of SMRs in seven states. It is also working with RoPower to deploy six modules at the new SMR power plant in Romania.
The demand for clean, reliable electricity is increasing. NuScale has challenges (like turning a profit), and it’s not the only energy company targeting the data center space. Bloom EnergyFor example, it also sells on-site power generation, and it already works with customers in data center space.
Can NuScale Be a Millionaire-Making Stock? Not anytime soon. It should become the most important nuclear energy company in the country to close. Right now, it’s nowhere near that. It can drive value in the long run, but approach the stock with caution as it will likely be volatile over the next half-decade.
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