SMR Sector Outlook 2025: Key Drivers of Growth

The global small modular reactor (SMR) market is entering a phase of unprecedented growth, projected to double from US $6.9 billion in 2025 to US $13.8 billion by 2032. This acceleration is being driven by AI infrastructure’s surging energy demand, energy security imperatives, and decarbonization goals — with tech giants like Amazon, Google, Microsoft, and Meta committing multi-gigawatt nuclear capacity agreements through the 2030s.

Capital inflows into SMR developers have reached record levels in 2024–2025, with private funding rounds of US $700 million (X-Energy), US $225 million (Radiant), and €135 million (Newcleo), alongside large public-private partnerships. The sector is now positioned to become a primary clean-power backbone for data centers, defense, and industrial operations.

Key technological shifts — Proven pressurized water reactor (PWR) designs for near-term deployment, next-generation gas-cooled and molten-salt systems for efficiency gains, and advanced waste-recycling fast reactors targeting long-term sustainability.

Emerging private market opportunities — Dominated by Last Energy, Radiant Industries, and Newcleo, with additional momentum from X-Energy, Kairos Power, TerraPower, and Oklo. Commercial pipelines include Last Energy’s 80+ reactor unit agreements worth over US $32 billion, Radiant’s DOE-backed microreactor program, and Newcleo’s €1 billion European build-out.

The evolving geopolitical landscape — U.S. DOE’s Advanced Reactor Demonstration Program, France’s Bpifrance SMR funding strategy, and the UK’s first commercial nuclear site licensing since 1978.

Flagship infrastructure projects — Amazon’s 1.9 GW nuclear PPA with Talen Energy, Google’s Kairos SMR program targeting 500 MW by 2030, Microsoft’s Three Mile Island restart, and Meta’s 1.1 GW Constellation Energy agreement.

High-profile market catalysts — Tech giant PPAs creating bankable demand, export-credit financing (US$103.7 million EXIM Bank LOI to Last Energy), and rapid factory-build reactor deployment models.

Projected financial outcomes through 2035 — Earliest deployments (Last Energy, 2026–2027), large-scale U.S. rollouts (X-Energy 5 GW by 2039), and Europe’s integrated waste-to-power SMR ecosystems (Newcleo 2033).