NuScale Power (NYSE: SMR) is emerging as a key player in the nuclear energy sector, poised to capitalize on the projected $10 trillion opportunity driven by the rapid expansion of data centers to support artificial intelligence (AI) technologies. As data centers require significant energy resources, the existing electric grid struggles to keep pace, creating an urgent need for additional energy generation. NuScale’s small modular reactors (SMRs) offer a promising solution, as they can be constructed faster and more cost-effectively than traditional power plants.

The urgency for new energy sources is underscored by a McKinsey & Co. report, which estimates global spending on data centers could reach $7 trillion by 2030. While conventional power plants often take over a decade to build, NuScale’s SMRs could provide a quicker, low-carbon alternative, aligning with the sustainability goals of major tech firms.

For market professionals, NuScale’s unique position in the nuclear landscape suggests potential for significant growth as demand for clean, reliable energy sources intensifies. Investors may want to monitor NuScale closely as it navigates the path to operationalizing its first systems, expected around 2030.

Source: fool.com