Small modular reactor industry sees renewed momentum and federal backing

The small modular reactor (SMR) industry is seeing a resurgence in interest, with 2026 projected to be a pivotal year for commercial activity. While the sector faces challenges regarding cost and proven scalability, renewed momentum is being driven by new construction starts and $900 million in federal funding reserved by the Trump administration, with $94 million already awarded.

Publicly traded companies like Oklo, NuScale Power, and GE Vernova are key players in the SMR market. Oklo is targeting the artificial intelligence sector by aiming to build plants near data centers to sell energy directly to AI providers through long-term agreements. Its project backlog stands at 18.1 gigawatts, though much of this is tied to single customers and carries cancellation risk.

NuScale Power follows a traditional utility model, selling SMR systems to utility companies that manage energy delivery to the grid. NuScale’s backlog is estimated between 6 and 7 gigawatts, largely centered on a single utility customer in the eastern United States. Despite the high potential of these projects, the industry continues to grapple with the transition from a construction-based model to a more efficient manufacturing-based model to reduce costs.