Small Modular Reactors (SMRs): Current Status, Future Projections, and Opportunities
Huge Power Demands are Creating Huge Opportunities
Introduction
Small Modular Reactors (SMRs) represent a transformative shift in nuclear energy, offering scalable, low-carbon solutions to meet the world's escalating energy demands. Defined as nuclear reactors with a power output of up to 300 megawatts electric (MWe), SMRs are designed for modular construction, factory fabrication, and flexible deployment. Their smaller size, enhanced safety features, and adaptability make them a promising technology for addressing energy security, decarbonization, and the specific needs of energy-intensive industries like data centers. This article provides a comprehensive analysis of the current status of SMRs, their future projections, the technologies involved, their role in meeting large-scale energy needs, and the opportunities they present for construction unions and contractors, including training requirements.
Current Status of SMRs
Global Development and Deployment
As of June 2025, SMRs are gaining significant traction worldwide, driven by the need for clean, reliable, and dispatchable energy. Over 80 commercial SMR designs are under development globally, with key players including NuScale Power (United States), Rolls-Royce (United Kingdom), EDF (France), and state-backed programs in China and Russia. Only a few SMRs are commercially operational, notably Russia’s Akademik Lomonosov floating nuclear power plant (two 35 MWe reactors) and a single unit in China. In the United States, NuScale Power leads the pack, having secured design approval from the U.S. Nuclear Regulatory Commission (NRC) for its 77 MWe uprated NuScale Power Module™, positioning it for deployment by 2030.
Several countries are advancing SMR projects:
United States: The U.S. Department of Energy (DOE) has invested heavily in SMRs through programs like the Advanced SMR R&D Program and a $900 million solicitation in 2025 to support first-mover and fast-follower deployments. Projects include NuScale’s VOYGR-6 plant in Romania and planned deployments in Ohio and Pennsylvania.
Europe: The European Industrial Alliance on SMRs, launched in February 2024, aims to deploy SMRs by the early 2030s, focusing on supply chain development and financing. France’s EDF is developing the 170 MWe NUWARD SMR, while the UK’s Great British Nuclear (GBN) is selecting SMR technologies for its 2050 nuclear expansion plan.
Asia: China is constructing multiple SMRs, and South Korea is exploring licensing for SMR designs. In the Asia-Pacific, SMRs are seen as a solution for data center energy demands.
Regulatory and Safety Advances
Regulatory frameworks are evolving to accommodate SMRs. The U.S. Nuclear Energy Innovation and Modernization Act (NEIMA) and the ADVANCE Act (2024) have streamlined licensing, reducing review timelines to 36 months. The International Atomic Energy Agency (IAEA) is assessing the applicability of safety standards to SMRs, with a 2022 report addressing innovative technologies. SMRs incorporate passive safety features, such as gravity and convection-based cooling, reducing the risk of large-scale accidents compared to traditional reactors. However, challenges remain, including public acceptance, regulatory harmonization, and preventing nuclear proliferation with the large number of SMRs needed for economic viability.
Economic and Market Landscape
SMRs face high first-of-a-kind costs, with current levelized cost of electricity (LCOE) estimates ranging from $60 to $85 per MWh. However, modular designs and factory production are expected to reduce costs over time, with projections suggesting LCOE could drop to $40–$60 per MWh by 2030 for designs like NuScale’s VOYGR. A 2017 study reported average capital costs of $3,782/kW and operating costs of $21/MWh, but economies of scale require producing thousands of units. The global SMR market is projected to grow significantly, with demand driven by decarbonization goals and energy security needs.
Future Projections for SMRs
Market Growth and Deployment
Analysts predict SMRs will be commercialized within 5–10 years, with first-of-a-kind projects demonstrating viability by 2030. The International Energy Agency (IEA) estimates that cost-competitive SMRs could reach 190 GW of global capacity by 2050 if construction costs fall to $2,500/kW in China and $4,500/kW in the U.S. and Europe. The U.S. alone has nearly 4 GW of announced SMR projects and 3 GW in early development. Emerging economies, particularly China, are expected to lead, with installed nuclear capacity tripling by 2050.
Role in Decarbonization
SMRs are poised to play a critical role in achieving net-zero targets. Their ability to provide firm, dispatchable power complements intermittent renewables like wind and solar. The IEA highlights SMRs’ potential to decarbonize hard-to-abate sectors, such as transport, chemical industries, and district heating. Additionally, SMRs can produce low-carbon hydrogen via electrolysis, reducing costs by up to 40% compared to renewable-powered alternatives.
Challenges to Overcome
Despite their promise, SMRs face several hurdles:
Cost Competitiveness: Achieving price and performance parity with fossil fuels and renewables requires large-scale factory production and standardization.
Supply Chain: The production of high assay low enriched uranium (HALEU) fuel, required by many SMR designs, is limited. The U.S. DOE projects a need for 40,000 kg of HALEU by 2030, but current production capacity is insufficient.
Regulatory Delays: Licensing and siting approvals can slow deployment, particularly for novel designs.
Public Perception: Historical nuclear accidents (e.g., Chernobyl, Fukushima) continue to fuel public skepticism, necessitating robust engagement strategies.
Technologies Involved in SMRs
SMRs encompass a diverse range of technologies, distinguished by their size, coolant type, and design philosophy.
Reactor Types and Coolants
Light Water Reactors (LWRs): These use light water as a coolant and moderator, similar to traditional reactors. NuScale’s VOYGR and Rolls-Royce’s UK SMR are LWR-based, offering familiarity and regulatory advantages. LWRs are expected to be deployed in the late 2020s to early 2030s.
Non-Light Water Reactors:
Gas-Cooled Reactors: Use helium or carbon dioxide, offering high-temperature operation for industrial heat applications.
Liquid Metal-Cooled Reactors: Use sodium or lead, enabling smaller designs and longer operating cycles.
Molten Salt Reactors: Use molten salts as both coolant and fuel, potentially reducing waste and improving safety.
Microreactors: A subset of SMRs with outputs up to 10 MWe, designed for remote or off-grid applications. Examples include the U.S. Department of Defense’s Project Pele mobile reactor.
Design Features
Modularity: SMRs are prefabricated in factories, reducing on-site construction time and costs. This allows for incremental deployment, where additional modules can be added as demand grows.
Passive Safety: Many SMRs rely on inherent safety features, such as low power density and natural convection, minimizing the need for active systems or human intervention.
Load-Following Capability: Some designs can adjust output to match demand, supporting integration with renewables.
Co-Generation: SMRs can provide electricity, industrial heat, or hydrogen, enhancing economic viability.
Fuel Innovations
Many advanced SMRs require HALEU fuel (5–20% uranium-235), which enables smaller designs and longer operating cycles. The U.S. is investing in domestic HALEU production, with a demonstration program in Ohio aiming to produce 20 kg by 2023. Europe is exploring HALEU production but faces investment and licensing challenges.
Meeting Large-Scale Energy Needs
Data Centers
The explosive growth of artificial intelligence (AI), cloud computing, and high-performance computing has driven unprecedented energy demand from data centers. Globally, data center electricity consumption is projected to increase by 50% by 2040. SMRs are uniquely suited to meet these needs due to their:
Reliability: SMRs provide 24/7 baseload power, unlike intermittent renewables.
Compact Footprint: Their small size allows co-location with data centers, ensuring secure and precise power matching.
Sustainability: SMRs offer low-carbon energy, aligning with corporate environmental goals.
Notable projects include:
NuScale Power: Targeting hyperscale data centers in Ohio and Pennsylvania, with Standard Power planning nearly 2 GW of SMR-powered facilities.
Sweden’s SMR Campus: Kärnfull Next’s Nyköping project integrates SMRs with data center operations, aiming for completion by 2030.
Amazon’s Investment: Amazon is investing over $500 million in SMRs with Dominion Energy to power AWS data centers.
Other Energy-Intensive Sectors
SMRs are also poised to support:
Industrial Applications: Providing process heat for chemical, steel, and hydrogen production.
Remote Communities: Microreactors can replace diesel generators in rural or off-grid areas.
District Heating: Supplying low-carbon heat to municipalities.
Desalination: Supporting water-scarce regions with energy for desalination plants.
Opportunities for Construction Unions
Construction and Deployment
The global push for SMRs presents significant opportunities for construction unions. Unlike traditional nuclear plants, which require extensive on-site construction, SMRs rely on factory fabrication, reducing but not eliminating the need for skilled labor at deployment sites. Key opportunities include:
Site Preparation and Infrastructure: SMR projects require site grading, foundation work, and utility connections, tasks well-suited for union workers.
Module Installation: Assembling prefabricated modules on-site demands precision and expertise, creating roles for union laborers, operators, electricians, pipefitters, ironworkers, and others.
Maintenance and Upgrades: SMRs’ long operational lifespans (up to 60 years) ensure ongoing maintenance work, including refueling and system upgrades.
In the U.S., projects like NuScale’s VOYGR plants in Ohio and Pennsylvania are expected to create thousands of construction jobs. The DOE’s $900 million solicitation emphasizes first-mover teams, including constructors, fostering collaboration with unions. In Europe, the SMR Industrial Alliance is strengthening supply chains, likely increasing demand for skilled labor.
Economic Impact
A single SMR project can generate significant economic benefits. For example, NuScale’s VOYGR-6 plant in Romania is projected to create local jobs and stimulate supply chain development. The modular nature of SMRs allows for repeatable construction processes, providing unions with stable, long-term work as projects scale globally.
Training Requirements and Opportunities for Union Contractors
Training Needs
The unique characteristics of SMRs necessitate specialized training for union contractors. Key areas include:
Modular Construction Techniques: Workers must learn to handle prefabricated modules, requiring skills in precision assembly and quality control.
Advanced Safety Protocols: SMRs’ passive safety features and HALEU fuel introduce new safety considerations, necessitating training in radiation protection and emergency response.
Digital Integration: SMRs often incorporate advanced control systems, requiring familiarity with digital tools and automation.
HALEU Fuel Handling: Safe transport and management of HALEU fuel demand specialized training, particularly for pipefitters and mechanical workers.
Training Opportunities
Unions and contractors can capitalize on training programs to prepare for SMR projects:
NuScale’s Energy Exploration (E2) Centers: These provide hands-on SMR control room training for operators, researchers, and future workers, offering a model for union training programs.
DOE and IAEA Initiatives: The DOE’s Advanced SMR R&D Program and IAEA’s Technical Working Group on SMRs support workforce development, including training for new technologies.
Union-Led Apprenticeships: Unions can expand apprenticeship programs to include SMR-specific modules, leveraging existing nuclear training frameworks.
European Programs: The Euratom Research and Training Programme, with €16 million for SMR safety research, includes workforce training components that unions can tap into.
Contractor Opportunities
Union contractors stand to benefit from:
Long-Term Contracts: SMR projects’ phased deployment (e.g., adding modules over time) creates opportunities for multi-year contracts.
Public-Private Partnerships: Initiatives like the DOE’s first-mover teams and the UK’s GBN program involve contractors in planning and execution, fostering stable partnerships.
Global Markets: As SMRs expand to regions like Asia and Africa, contractors with SMR expertise can secure international projects, particularly in factory fabrication.
Conclusion
Small Modular Reactors are at a pivotal moment, transitioning from research and development to commercial deployment. With over 80 designs in progress and first-of-a-kind projects slated for the late 2020s to early 2030s, SMRs are poised to address the world’s growing energy needs, particularly for data centers and industrial applications. Their modular design, enhanced safety features, and versatility make them a cornerstone of the clean energy transition. However, challenges like cost competitiveness, supply chain constraints, and regulatory hurdles must be addressed to unlock their full potential.
For construction unions and contractors, SMRs offer a wealth of opportunities, from site preparation and module installation to long-term maintenance. Specialized training in modular construction, safety protocols, and digital systems will be critical to preparing the workforce. By leveraging programs like NuScale’s E2 Centers, DOE initiatives, and union-led apprenticeships, contractors can position themselves as leaders in this emerging industry. As SMRs redefine global energy security, they also promise to create stable, high-skill jobs, driving economic growth and supporting a sustainable future.