Global SMR pipeline surges 42% as data centres drive demand

As energy demand grows, particularly driven by data centres and AI applications, the small modular reactor (SMR) nuclear pipeline surged 42% since last quarter to reach 47 gigawatts (GW), according to a new report from Wood Mackenzie.

According to Wood Mackenzie’s “SMR nuclear market update: Q1 2025” the unrisked pipeline, which includes all announced projects, expanded by 14 GW quarter-over-quarter. Data centres have expanded to a 39% share of the unrisked pipeline, but the largest end-use segment continues to be power generation at a 51% share.

In total, the current pipeline of 47 GW would require an investment of around US$360 billion.

"The surge in data centre demand has propelled nuclear SMRs to a major player in the future energy mix," said David Brown, director, Energy Transition Research at Wood Mackenzie. “Nuclear SMRs remain a top priority for the Trump administration and with policy tailwinds, development should accelerate and expand to be a significant source of clean energy.”

With this interest, the US accounts for 53% of the unrisked pipeline, almost double the second-largest market, Poland. Key players in the market are Oklo, GE-Hitachi, and X-Energy, which combine for nearly 31 GW of SMR pipeline capacity globally.

Currently, there is 2.5 GW under construction or in development, with 1.2 GW of activity in Canada.

The report also notes that trade tariffs will increase SMR costs, potentially raising them by about 6% by 2030.

“Tariffs on steel and aluminum imports will raise construction costs for new reactors in the United States,” said Brown. “We expect tariffs to impact costs as projects are built, with the strongest impact from 2028-2035.”

According to the report, elevated or permanent tariff levels are the largest risk facing the nuclear sector now. Wood Mackenzie expects levelized cost of electricity (LCOE) to increase if enriched uranium imports are subject to 145% tariff levels for example.

“While we understand US utilities have slowed uranium purchases in past six months, eventually the utilities will need to resume imports, and this could increase global spot and term prices for uranium supply,” said Brown.