The Power Allocation

SMR Costs and the $182 Question

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In this episode of The Power Allocation, we examine the economic reality of small modular reactors for data centers: current estimates put SMR electricity at around $182 per megawatt hour—roughly three times utility-scale solar and four times combined cycle natural gas.

The SMR value proposition depends on costs falling dramatically through factory fabrication and standardized designs. But data centers may tolerate premium pricing when the alternative is no power at all.

Key topics covered:

  • Why first-of-a-kind reactors carry full design, regulatory, and supply chain development costs
  • The nuclear industry's credibility problem after Vogtle cost overruns
  • How hyperscalers' long-term contracts can average costs over decades
  • The coordination problem: everyone waiting for someone else to prove costs come down
  • Why $182/MWh looks reasonable when the alternative is 5-year grid interconnection waits

    • About The Power Allocation: Brought to you by Spring Street Management Group, translating data center and energy hype into real infrastructure and assets on the daily.

    Keywords: SMR costs, small modular reactor economics, nuclear power costs, LCOE, data center nuclear, Vogtle, factory fabrication, nuclear economics, energy costs, power purchase agreement, hyperscaler nuclear

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    The Power AllocationBy Spring Street Management Group