NuScale Power’s Stock Soars Amidst Nuclear Energy Resurgence, But Challenges Remain

September 10, 2025

NuScale Power’s stock has experienced significant gains, fueled by a renewed interest in nuclear energy driven by the escalating power demands of artificial intelligence and data centers. The company, a pioneer in small modular reactor (SMR) technology, is positioned to benefit from government support for nuclear infrastructure. However, past project cancellations and the long timeline for commercial viability present considerable risks for investors.

The AI Energy Demand and Nuclear’s Comeback

The rapid growth of artificial intelligence and data centers is creating an unprecedented surge in energy demand. Projections indicate a substantial increase in electricity consumption from these sectors, leading businesses and utilities to seek reliable, carbon-free energy solutions. Nuclear power, particularly SMRs, is re-emerging as a key player in meeting these needs. Government initiatives, including billions in funding and streamlined regulatory pathways, further bolster the sector’s prospects. NuScale Power holds a unique position as the only company with an approved SMR design in the U.S., making it a focal point in this energy transition.

NuScale’s Technological Edge and Market Position

NuScale’s core innovation is its Small Modular Reactor (SMR) technology, with modules capable of generating 77 megawatts of electricity. The design’s modularity allows for scalability, from a single module to a 12-module installation, offering up to 924 MWe. This flexibility appeals to customers seeking to manage initial investments and scale capacity over time. The company’s first-mover advantage, secured through U.S. Nuclear Regulatory Commission (NRC) Standard Design Approval for its 77 MWe module, provides a significant regulatory head start in an industry where approvals are lengthy.

Key Takeaways:

AI-Driven Demand: The burgeoning AI sector is a major catalyst for increased electricity demand, pushing tech companies to seek new energy sources like nuclear power.
Government Support: U.S. government policies are actively promoting the revitalization of nuclear infrastructure, including funding for SMRs.
NuScale’s Advantage: NuScale is the sole U.S. company with an approved SMR design, giving it a competitive edge.
Project Setbacks: Past project cancellations, such as the Carbon Free Power Project in Utah due to cost overruns, highlight significant challenges.
Long-Term Viability: Commercial operations for SMRs are still years away, requiring patience from investors.

Challenges and Investor Caution

Despite the positive outlook, NuScale faces significant hurdles. The cancellation of its flagship Carbon Free Power Project (CFPP) with Utah Associated Municipal Power Systems (UAMPS) in 2023 due to escalating costs served as a major setback. This project’s termination underscored the difficulties in translating early-stage agreements into commercially viable deployments. Furthermore, the company’s first commercial project in Romania, RoPower, is not expected to be operational until 2029 at the earliest, illustrating the long time horizons involved. While NuScale’s stock has seen substantial gains, driven by market optimism, its current valuation and lack of revenue necessitate a cautious approach from investors, who are advised to monitor the company’s progress closely.