Small Modular Reactors: The New Frontier in Data Center Energy Solutions
Amid the surge of interest in artificial intelligence, nuclear power is experiencing a renaissance, with venture capitalists pouring hundreds of millions into startups developing small modular reactors (SMRs) to address energy challenges faced by data centers.
Radiant's Bold Move into SMRs
Founded in 2020 and based in El Segundo, California, Radiant announced a significant funding boost, raising over $300 million in a funding round led by Draper Associates and Boost VC. This capital will accelerate the commercialization of its microreactors, which are compact, semi-trailer-sized units designed to generate power efficiently.
Radiant plans to break ground in 2024 on an SMR manufacturing plant in Oak Ridge, Tennessee, aiming to streamline production and deployment.
> "This funding enables us to build our factory and adhere to our DOME schedule, where we will achieve a self-sustained chain reaction on a reactor designed by, built by, fueled by, and operated by Radiant alongside our partners at the Idaho National Lab," stated CEO Doug Bernauer.
The DOME Project and the Kaleidos Demonstration Unit
Radiant's efforts are closely linked to the Idaho National Laboratory's DOME project, which focuses on demonstrating microreactor experiments. The company is on track to activate its first reactor, the Kaleidos Demonstration Unit (KDU), in 2024.
Unlike other SMRs, Radiant’s Kaleidos reactors are notably small, producing approximately one megawatt each. Their design shares similarities with X-Energy’s reactors, which employ TRISO fuel pellets and helium gas as a coolant.
Transportability and Lifespan
Thanks to their size, these reactors can be transported using standard semi-trailers. They are designed for easy refueling up to four times over a lifespan of 20 years. This mobility allows for flexible deployment across different locations as needed.
> "Radiant's Kaleidos reactor can be transported via semi-trailer and is capable of producing up to a megawatt of power," illustrates the company's promotional materials.
Power Output and Data Center Compatibility
While a megawatt is substantial, it may be insufficient for large-scale data centers. Modern servers from Nvidia, for example, operate at about 140 kW per rack, with next-generation systems projected to hit 600 kW by late 2027. To meet such demands, data center operators might need multiple Kaleidos reactors—potentially two for every three Nvidia Kyber racks.
Despite the modest size, some major operators like Equinix are betting on SMRs. In August, Equinix announced an order for 20 of Radiant’s reactors, signaling strong industry interest.
Investment Trends in Nuclear for Tech Giants
Leading tech giants are also exploring nuclear options:
- Amazon is investing in both traditional and small modular reactors to reduce dependence on the U.S. grid.
- Google and Oracle are backing SMR startups.
- Microsoft is funding the reactivation of the historic Three Mile Island Unit 1 reactor, aiming to leverage existing nuclear infrastructure.
Challenges and Future Outlook
Despite enthusiasm, questions remain about the cost-effectiveness of SMRs. A September report from the Centre for Net Zero (CNZ) estimates that powering a 120 MW data facility with renewables and minimal gas could be 43% cheaper than using SMRs.
As the industry advances, it remains to be seen whether SMRs will become a financially viable and scalable solution for the energy-hungry data center sector.
---
Note: The landscape of nuclear technology and data center energy needs continues to evolve, and innovation strategies are expected to influence the future of sustainable computing.