China Explores Small Nuclear Reactors (SMRs) to Power the Future of Tech & Data Centers

Small Modular Reactors (SMRs) are emerging as a potential game-changer for clean energy, and Chinese tech and transportation giants are jumping into the ring.

They’re teaming up with nuclear energy companies to explore using these compact power sources for energy-hungry data centers.

This isn’t just talk; feasibility studies for demonstration projects are already underway.

Wang Binghua (Wang Binghua 王炳华), a key advisor to the China Nuclear Energy Association (Zhongguo Heneng Hangye Xiehui 中国核能行业协会) and former chair of the State Power Investment Corporation Limited (SPIC) (Guojia Dianli Touzi Jituan Youxian Gongsi 国家电力投资集团有限公司), dropped this insight at a recent forum.

They’re even looking into tiny, vehicle-mounted micro-reactors. Wild.

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The Global SMR Gold Rush: Why Now?

This isn’t happening in a vacuum. Globally, there’s a massive push for SMRs, driven by two key factors:

• Climate Change Goals: Nations are scrambling for clean energy solutions.
• Big Tech’s Power Thirst: Companies need reliable, low-carbon energy for their massive data centers, especially with the AI boom demanding more power.

Look at the US:

• Last October, Google (Guge 谷歌) inked a power purchase deal with Kairos Power, aiming to use seven SMRs by around 2030.
• Nuclear stocks have been on a tear in 2024. NANO Nuclear Energy? Up nearly 650% since its IPO. Nuscale Power? A peak surge of almost 950%. Vistra Energy? Over 320% growth at its peak. Oklo Inc and Constellation Energy (Xingzuo Nengyuan Gongsi 星座能源公司)? Doubled.
• The U.S. Department of Energy (Meiguo Nengyuan Bu 美国能源部) rebooted a $900 million USD (approx. ¥6.52 billion RMB) funding program in March 2024 specifically for commercializing modular small light-water reactors.
• Tech heavyweights like Google (Guge 谷歌), Oracle (Jiaguwen 甲骨文), and Amazon (Yamazon 亚马逊) are investing, eyeing SMRs for carbon-free data center power.

Europe’s in on it too:

• The European Commission (Oumeng Weiyuanhui 欧盟委员会) formed an SMR industry alliance in February 2024 to fast-track development, aiming for the first deployments by the early 2030s.

And Russia (Eluosi 俄罗斯)?

• They’ve signed their first deal to export a land-based SMR to Uzbekistan (Wuzibiekesitan 乌兹别克斯坦) and are pushing their floating nuclear power plant tech.

What Exactly Are SMRs?

The International Atomic Energy Agency (IAEA) (Guoji Yuanzineng Jigou 国际原子能机构) keeps it simple:

• Small Reactors: Electrical power output less than 300 MWe.
• Micro-Reactors: Electrical power output not exceeding 15 MWe.

Think smaller, potentially factory-built, and more flexible than traditional, giant nuclear plants.

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Decoding SMR Technology: A Global Snapshot

According to the IAEA, there are over 80 SMR designs globally. It’s a diverse field, mostly building on proven third-gen nuclear tech but borrowing ideas from next-gen (fourth-gen) concepts.

Here’s the tech breakdown:

• Water-Cooled (Land & Sea): Dominate at 43.1% (mostly Pressurized Water Reactors – PWRs).
• Gas-Cooled: 19.4%
• Fast Neutron Reactors: 15.3% (Lead-cooled fast reactors are popular here).
• Molten Salt Reactors: 13.9%
• Other Types: 8.3%

Good to know: Around 70% of the SMRs likely deployable soon use advanced, integrated PWR technology – a tried-and-tested approach.

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China’s SMR Power Play: Leading the Pack

“China has made significant achievements in SMR technology development and leads in the deployment of land-based small PWRs,” Wang Binghua confidently stated.

It’s not just one or two players. Six major groups in China are deep into SMR development:

• China National Nuclear Corporation (CNNC) (Zhonghe 中核)
• China General Nuclear Power Group (CGN) (Zhongguanghe 中广核)
• State Power Investment Corporation (SPIC) (Guojia Diantou 国家电投)
• Chinese Academy of Sciences (CAS) (Zhongkeyuan 中科院)
• Tsinghua University (Qinghua Daxue 清华大学)
• Former China Shipbuilding Industry Corporation (CSIC) (Zhongchuan Zhonggong 中船重工)

Together, they’ve cooked up 12 different SMR types covering various uses, power levels, and reactor designs, including:

• Land-based water reactors
• Marine water reactors
• High-temperature gas-cooled reactors
• Fast reactors
• Molten salt reactors

Key Chinese SMR Projects Heating Up:

• “Linglong One (Linglong Yihao 玲龙一号)” (ACP100): Developed by CNNC, this is a big one. It’s under construction and expected to finish in 2026, potentially becoming the world’s first commercial land-based modular SMR. Its main pump was just installed in April 2024 – a major step.



On April 16, the main pump for the world’s first “Linglong One (Linglong Yihao 玲龙一号)” SMR was successfully hoisted into place, marking a critical phase for system installation.

• 200 MWe High-Temperature Gas-Cooled Reactor: Developed by Tsinghua University, it actually started commercial operation at the end of 2023.
• 2MWt Thorium-Based Molten Salt Experimental Reactor: Developed by CAS, hit full power operation in 2024.
• Heating Reactors: Projects like SPIC’s integrated heating reactor, the NHR200-Ⅱ (by CGN and Tsinghua), and CNNC’s Yanlong (Yanlong 燕龙) (DHR-400) pool-type reactor are actively moving forward for district heating.
• Marine Reactors: CGN and CNNC have developed floating models like ACPR50S, ACP100S, and ACP25S for offshore power.

Beyond the Grid: Finding SMRs’ Sweet Spots

Okay, so China already has a massive power grid. Why SMRs then?

Industry insiders point out that for pure electricity generation, SMRs might struggle to compete on cost with huge nuclear plants in China’s context.

BUT, SMRs have unique advantages for specific jobs:

• Replacing Coal Plants: Swapping out older, small-to-medium coal-fired heat and power units. A US DOE report even suggests hundreds of US coal plants could be converted to nuclear. China faces a peak coal plant retirement wave around 2030, and major players like China Huaneng Group (Huaneng Jituan 华能集团), SPIC (Guodiantou Jituan 国电投集团), CGN (Zhongguanghe 中广核), and China Energy Investment Corporation (Guojia Nengyuan Jituan 国家能源集团) are already studying SMRs for these sites.
• District Heating: Providing clean heat for northern Chinese cities. Currently, over 80% of the 18 billion+ square meters of heating relies on fossil fuels. By 2060, an estimated 11 billion square meters will need replacing with clean sources. Pool-type SMRs are designed for this.
• Industrial Steam: Powering petrochemical plants (“nuclear-petrochemical coupling”) to help them decarbonize.
• Marine & Island Power: Providing energy for offshore development and remote islands, where flexibility is key. Floating or island-based SMRs fit the bill perfectly. China is actively looking to match SMR tech with these energy needs.
• Special Users: Think large industrial parks or, yes, data centers needing reliable, clean, dedicated power.
• Exports: Countries with smaller grids might find SMRs a better fit than massive plants.

The Export Angle: SMRs on the “Belt and Road”

The export market could be huge.

Wang Binghua highlights that many countries in the “Belt and Road Initiative (Yidai Yilu 一带一路)” have smaller populations and grids, making large nuclear plants impractical.

SMRs offer a tailored solution for their electricity, heating, and other energy needs.

The suggestion? Make SMRs a core part of China’s “going global” nuclear strategy.

This means:

• Targeting Belt and Road nations interested in nuclear but unsuited for large plants.
• Using diplomacy to promote SMRs.
• Quickly assessing market potential and technical needs.
• Developing SMR models specifically for smaller grids and non-power applications.

The Bottom Line: Cost vs. Potential

Let’s talk cost.

Right now, the construction cost per kilowatt for an SMR is roughly double that of a large commercial PWR nuclear project, according to Wang Binghua.

However, early calculations show the levelized cost of electricity and heat from SMRs already beats natural gas.

The big bet? As production scales up (think mass manufacturing) and more SMRs are deployed, costs will drop significantly, making them much more competitive.

With the immense power demands of AI and data centers, and the global push for decarbonization, Small Modular Reactors (SMRs) are definitely a technology to watch closely in China and beyond.

FAQs

What are Small Modular Reactors (SMRs)?

SMRs are advanced nuclear reactors with a power capacity significantly smaller than traditional large-scale nuclear power plants. The IAEA defines them as having an electrical output under 300 MWe. Micro-reactors are even smaller, typically under 15 MWe. They are designed to be potentially factory-fabricated and transported for installation, offering more flexibility.

Why are tech companies like Google interested in SMRs?

Tech companies run massive, energy-intensive data centers that power cloud computing, AI, and other digital services. They face increasing pressure to use clean, reliable, carbon-free energy sources. SMRs offer a potential solution by providing consistent, low-carbon power directly where needed, potentially reducing reliance on grid electricity that might not be entirely clean.

What are some key SMR projects happening in China?

China is a leader in SMR development. Key projects include CNNC’s “Linglong One” (ACP100), the world’s first land-based commercial SMR expected in 2026; Tsinghua University’s high-temperature gas-cooled reactor (already operating); CAS’s thorium molten salt experimental reactor; various low-temperature heating reactors (like Yanlong) for district heating; and marine reactor designs (ACPR50S, ACP100S) for offshore use.

Are SMRs cost-effective compared to other energy sources?

Currently, the upfront construction cost per kilowatt for SMRs is higher than large nuclear plants (roughly double). However, their levelized cost of energy (electricity and heat) is already seen as competitive with natural gas. The expectation is that costs will decrease significantly with technological maturity, standardization, mass production, and large-scale deployment.

What are the main applications being explored for SMRs in China?

Beyond potentially powering data centers, China sees unique applications for SMRs where large plants aren’t suitable. These include replacing aging coal-fired power/heat units, providing large-scale clean district heating for cities, supplying steam for industrial processes (like petrochemicals), powering remote islands and marine development, and exports to countries with smaller energy grids.

References

• The Paper (澎湃新闻) – Original Article
• IAEA: What are Small Modular Reactors (SMRs)?
• World Nuclear News: Core module installation starts at Chinese SMR (Linglong One)
• Data Center Knowledge: Google Strikes Deal With Nuclear Energy Startup Kairos Power
• U.S. Department of Energy: Investigating the Benefits and Challenges of Converting Retiring Coal Plants into Nuclear Plants (Note: Link added for context based on mention in the text, although not in original source list)