$NextEra Energy (NEE.US)$ CEO John Ketchum stated this week that by 2040, the US will need to add 900 GW to meet demand, with nuclear power potentially able to provide only a small portion, while new technologies like Small Modular Reactors (SMR) still remain uneconomical. Ketchum said during the company's third-quarter earnings call, "Only a few nuclear power plants can be economically recommissioned, but even if these recommissions have a 100% success rate, we would still only be able to meet less than 1% of the (new) demand."

Jefferies Financial analyst had previously stated that despite facing potential challenges such as regional wind power resource competition, it is expected that NextEra Energy will announce an agreement to restart the Duane Arnold nuclear power plant in Iowa during the conference call. The expected news did not materialize, but Ketchum mentioned that the Duane Arnold nuclear power plant might be one of the few nuclear power plants that can reopen and operate economically.

According to UtilityDive.com, Ketchum stated that he is not bullish on Small Modular Reactor (SMR) technology, and the internal team at the company has not yet reached a favorable conclusion about SMRs.

The CEO also questioned the availability of US nuclear fuel and added that even as the cost of renewable energy continues to decline, SMRs remain "very expensive." Ketchum said, "We are currently prioritizing other power resources. Renewable energy technology takes quite a long time here."

AI consumes a lot of power, technology giants invest heavily in small nuclear reactors.

Recently, the surge in artificial intelligence and other computing has driven the vigorous growth of power-hungry datacenters, boosting electricity demand for the first time in decades. A developer of small nuclear power plants invested by OpenAI $Oklo Inc (OKLO.US)$ It is said that small nuclear power plants and datacenters are an ideal combination. Investors see nuclear energy as the next ai trading opportunity, and nuclear power stocks in the us stock market have recently experienced significant growth, especially $Oklo Inc (OKLO.US)$N/A.$NuScale Power (SMR.US)$ and other small nuclear reactor companies.

Last week, the United States was also negotiating with several Southeast Asian countries on deploying small modular nuclear reactors. Assistant Secretary for International Affairs of the U.S. Department of Energy, Andrew Light, stated that U.S. officials had discussed this issue with officials from the Philippines, Singapore, and Thailand. He told reporters at the Singapore International Energy Week conference held on Tuesday that the United States can engage in intergovernmental discussions on the current array of small modular reactors.

Small Modular Reactors (SMRs) are intended to produce energy that is cheaper, faster, and more environmentally friendly than traditional nuclear facilities. SMRs represent a relatively new nuclear power generation method, with designs more compact than conventional nuclear power plants, shorter construction periods, controlled costs, and higher safety standards. The core advantage of SMRs lies in their flexibility and scalability. Compared to large nuclear plants, SMRs can be built modularly, suitable for small-scale and decentralized power grids, better meeting the power needs of emerging markets and remote areas.

With the increasing power demand for data centers, manufacturing, and broader economic electrification, small modular nuclear reactors are a new design expected to accelerate the deployment of reliable, carbon-free energy. In general, these reactors have a power of 300 megawatts or less, about one-third of the typical reactors in the United States. They will be prefabricated in several pieces and then assembled on site, thereby reducing the high capital costs that hinder large-scale factories.

Thanks to the convenience of this technology, leaders in the AI field have also invested heavily in this area. Previously, Google announced an agreement with Kairos Power to purchase electricity from the latter's planned 6-7 Small Modular Nuclear Reactors (SMRs), with a total capacity of 500 megawatts, to meet the growing demand for electricity. The trading details show that the two parties have signed a power purchase agreement, and Kairos plans to deliver the reactors between 2030 and 2035, with the construction site yet to be determined.

$Amazon (AMZN.US)$It also indicates an investment in small nuclear reactors, as the company has signed an agreement with Dominion Energy to explore the development of small modular nuclear reactors near Dominion's existing North Anna nuclear power station.

Meanwhile, the US Nuclear Regulatory Commission held its first public meeting on Friday with Constellation Energy Group (CEG.US) regarding plans to restart the Three Mile Island nuclear power plant in Pennsylvania. Constellation Energy Group plans to restart the 835 MW Unit 1 by 2028, and intends to sell the energy generated by the reactor to$Microsoft (MSFT.US)$.

$Oracle (ORCL.US)$Chairman and co-founder Larry Ellison stated last month that the company is designing a datacenter that will require over 1 gigawatt of electrical power; he added that the datacenter will be powered by three small nuclear reactors.

So far, no retired reactor has been restarted; the Palisades Nuclear Power Plant in Michigan is also in the process of resuming operations, with the U.S. Nuclear Regulatory Commission revealing that the nuclear plant's restart has faced no challenges.

Editor/Rocky