(MENAFN- GlobeNewsWire - Nasdaq) Dublin, April 17, 2024 (GLOBE NEWSWIRE) -- The "Small Modular Reactor Market for Data Centers - A Global and Regional Analysis: Focus on Product, Application, and Country - Analysis and Forecast, 2028-2033" report has been added to ResearchAndMarkets's offering.
The global small modular reactor market for data centers is anticipated to be valued at $38.26 million in 2028 and is expected to reach $278.35 million by 2033, exhibiting a robust CAGR of 48.72% during the forecast period 2028-2033. One of the primary drivers for the growth of the small modular reactor market for data centers is the increasing demand for energy reliability and security in data centers since they require continuous, reliable power to ensure uninterrupted operations. Small modular reactors (SMRs) offer a highly reliable and continuous source of energy, minimizing the risk of power outages and ensuring uninterrupted data center operations.
North America is expected to play a pivotal role in shaping the global small modular reactor (SMR) market for data centers due to its increasing energy demands and the rising prominence of SMRs as a cleaner energy source. The U.S., which is home to some of the world's leading SMR developers, is a key contributor to the SMR market for data centers in North America. In 2023, NuScale received design certification for its 77 Mega Watt (MW) uprated design, which is currently under review with the Nuclear Regulatory Commission (NRC). Standard Power, a provider of infrastructure as a service to advanced data processing companies, has chosen NuScale Power's SMR technology to power two facilities it plans to develop in the U.S.
If Standard Power's initial plans for the two facilities are ultimately realized, NuScale would provide 24 units of 77 MW modules for a combined capacity of 1,848 MW. Besides the U.S., other North American countries are also implementing aggressive growth plans to enhance their SMR production. For instance, the Canadian government has been actively supporting the development and deployment of SMRs.
These initiatives present significant opportunities for companies in the SMR market for data centers in North America. Despite challenges such as high installation costs and regulatory issues, North America's proactive approach is evident in its ongoing research and development efforts in SMR technology, positioning the region as a leader in the global SMR market for data centers.
Introduction to Small Modular Reactor Market for Data Centers
The small modular reactor market for data centers is witnessing significant growth driven by the increasing demand for scalable and sustainable energy solutions to power data processing infrastructure. Small modular reactors (SMRs), characterized by their compact size and modular design, offer an efficient and reliable source of energy for data centers, addressing the challenges posed by traditional large-scale power plants.
One of the key drivers of the small modular reactor market for data centers is the rising environmental concerns, and the push for carbon neutrality is driving the adoption of SMRs in the data center industry. With growing emphasis on reducing carbon emissions and achieving sustainability goals, SMRs offer a viable alternative to conventional fossil fuel-based power generation. Their modular nature allows for easier integration with renewable energy sources, providing a cleaner and more sustainable energy solution for data centers.
Furthermore, advancements in nuclear technology and regulatory support from governments worldwide are fueling the growth of the small modular reactor market for data centers. Countries such as the U.S., China, Russia, and others are investing in research and development initiatives to enhance SMR technology and streamline regulatory processes for their deployment.
Despite the promising growth prospects, the small modular reactor market for data centers faces challenges such as high initial investment costs, regulatory hurdles, and public perception of nuclear energy. However, with continued innovation, strategic partnerships, and favorable government policies, the small modular reactor market for data centers is poised for substantial growth in the data center industry, offering scalable, efficient, and sustainable energy solutions to meet the evolving needs of modern computing infrastructure.
Industrial Impact
The adoption of SMRs in data centers is reshaping industrial dynamics, offering a sustainable energy solution with significant business implications. SMRs provide a reliable, low-carbon power source for data centers, aligning with corporate sustainability goals and regulatory requirements. This shift toward cleaner energy not only enhances environmental stewardship but also strengthens operational resilience by reducing dependence on traditional power grids.
Additionally, the deployment of SMRs fosters collaboration among key industry players, including technology providers, energy companies, and regulatory authorities. Such partnerships drive innovation, streamline regulatory compliance, and accelerate the integration of SMRs into existing infrastructure. Overall, the industrial impact of SMRs in the data center domain underscores the transformative potential of sustainable energy solutions in driving business growth and resilience.
This surge in market value is primarily attributed to the escalating demand for clean energy solutions, the continuous expansion of data center facilities worldwide, and the increasing adoption of sustainability practices across various industries. As organizations prioritize environment-friendly energy sources and seek to enhance their operational resilience, the adoption of small modular reactors in data centers is expected to witness significant growth, driving the market forward.
Hyperscale Data Centers to Dominate the Global Small Modular Reactor Market for Data Centers (by Application)
The hyperscale data centers segment leads the global small modular reactor market for data centers, driven by increasing demand for cleaner energy in data management, cloud services, and digital transformation. Recent developments highlight the importance of Hyperscale data centers in this market.
Compared to traditional energy sources, transporting energy from SMRs for short distances offers benefits such as lower energy consumption and simpler infrastructure requirements. SMRs also excel in handling and storage, making them the preferred choice for applications needing short-distance transportation of this high-potential energy source.
Key Market Players and Competition Synopsis
Key players in the global small modular reactor market for data centers analyzed and profiled in the study involve small modular reactor manufacturers, including market segments covered by distinct product kinds, applications served, and regional presence, as well as the influence of important market tactics employed.
The companies that are profiled in the small modular reactor market for data centers have been selected based on inputs gathered from primary experts, who have analyzed company coverage, product portfolio, application, and market penetration. The global small modular reactor market for data centers is growing at a prominent rate, with many players competing for market share.
The small modular reactor market for data centers is characterized by the presence of companies developing small modular reactors (SMRs) and new-age start-ups. The small modular reactor market for data centers is attracting significant investment, driven by its innovative approach and the burgeoning demand for energy security and sustainability. Despite the potential, large-scale deployments may face logistical challenges related to transportation, regulatory approvals, infrastructure integration, and security considerations.
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