Nuclear's 125 GW Data Center Boom: NuScale vs Constellation for Clean Baseload

As renewable penetration hits limits of intermittency, the 125 GW data center load adds urgency to scaling firm, zero-carbon power. For climate-focused investors, nuclear is no longer a question but a necessity—and the duel between scrappy SMR innovator NuScale and seasoned operator Constellation defines two paths to a sustainable energy future.

The surging electricity demands from artificial intelligence data centers are reshaping the nuclear energy investment landscape, creating a pivotal moment for contrasting plays: innovative small modular reactor developer NuScale Power versus established utility Constellation Energy. As hyperscalers like Alphabet, Amazon, Meta, and Microsoft race to secure 24/7 baseload power, nuclear energy’s high power density and carbon-free reliability have catapulted it to the forefront of the energy transition. This evolution presents a classic growth-vs-value dichotomy: NuScale promises revolutionary SMR technology that could redefine decentralized nuclear deployment, while Constellation leverages its massive existing fleet to capture immediate demand.

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As hyperscalers like Alphabet, Amazon, Meta, and Microsoft race to secure 24/7 baseload power, nuclear energy’s high power density and carbon-free reliability have catapulted it to the forefront of the energy transition.

Goldman Sachs projects U.S. data center power demand could spike to 66 GW by 2027, accounting for up to 8.5% of peak summer demand. Bank of America adds that over the next five years, data centers could add 125 GW of new U.S. electric load, implying a compound annual growth rate of electricity demand of 4.1%. These numbers underscore an unprecedented energy surge, with training large language models requiring thousands of GPUs running for months, and AI agent loops demanding continuous, high-reliability power. Against this backdrop, both companies stand to benefit, yet their trajectories and risk profiles diverge sharply.

NuScale Power, the first company to receive U.S. Nuclear Regulatory Commission design approval for an SMR, aims to deploy factory-built reactors that can be scaled to meet specific needs, from remote data center campuses to grid-balancing applications. Its technology promises lower upfront capital costs, enhanced safety features, and faster construction timelines compared to traditional gigawatt-scale plants. However, NuScale remains pre-revenue, reliant on project milestones and regulatory progress. Its first commercial plant, the Carbon Free Power Project, faced delays and cost overruns before being canceled, but new partnerships are emerging. The company’s valuation hinges on the successful commercialization of its VOYGR SMR plants, with potential contracts from data center operators seeking dedicated, behind-the-meter nuclear power. The speculative upside is enormous, but so is execution risk.