UK Looks at Subsidizing Small Modular Reactors to Power AI Boom
(Bloomberg) -- The UK is laying out plans to help the development of small nuclear reactors as it seeks to power a boom in artificial intelligence.
The Department for Energy Security and Net Zero will on Wednesday announce a package of measures designed to make it easier for developers of small modular reactors to get financing.
While construction will be funded privately, the government will also look at designing a revenue support mechanism once they are switched on. That could look like the contracts for difference program offered to wind farms, the department said.
The UK has one of the largest data center capacities in Europe, accounting for 2.5% of power consumption. That’s expected to grow with the development of AI, and could threaten the UK’s net zero targets unless powered by clean sources of energy.
Desnz will offer developers the chance to join a pre-approved pipeline of ventures, and help them navigate the UK consenting process. Successful projects would receive an in principle government endorsement, which could make it easier for them to attract private finance.
Applicants are likely to include a project by X-Energy LLC and Centrica Plc to build 12 advanced modular reactors in Hartlepool, plans for Holtec International, Electricite de France SA, and Tritax Management to build small modular reactors at the former coal-fired power station Cottam in Nottinghamshire, and for TerraPower LLC and KBR Inc. to deploy its Natrium reactor technology.
“Advanced nuclear technology could revolutionize how we power industry and propel the AI data center boom — delivering more clean energy and jobs,” Minister for Nuclear Patrick Vallance said.
©2026 Bloomberg L.P.
