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ARTICLE · 24 APRIL 2025

The Future Of Power Is Small Modular Reactors: Development And Financing Overview

Mayer Brown
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Amid rising energy demand from data centres and other high-intensity sectors, small modular reactors (SMRs) are emerging as a promising alternative to traditional nuclear power.

United StatesEnergy and Natural Resources
John R.R. Tormey
John R.R. Tormey
Paul de Bernier
Paul de Bernier
Jimmie Zhang
Jimmie Zhang
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Amid rising energy demand from data centres and other high-intensity sectors, small modular reactors (SMRs) are emerging as a promising alternative to traditional nuclear power.

This article examines some key development and financing considerations, including inherent risks and financing sources, of SMR projects, while also providing an overview of the evolving US nuclear landscape and recent modular initiatives.

Development of nuclear power in the US began as an offshoot of the Manhattan Project, with the first nuclear reactor to produce electricity doing so in 1951 at the National Reactor Testing Station in Idaho. The first US commercial nuclear reactor, a 60 megawatt electrical (Mwe) net capacity pressurised water reactor (PWR), came online in December 1957, in Shippingport, Pennsylvania.

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This Mayer Brown article provides information and comments on legal issues and developments of interest. The foregoing is not a comprehensive treatment of the subject matter covered and is not intended to provide legal advice. Readers should seek specific legal advice before taking any action with respect to the matters discussed herein.

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