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From concept to commercialization, Hillcrest is investing in the development of energy solutions that will power a more sustainable and electrified future.
After Google’s parent company Alphabet (GOOG) (GOOGL) announced the world’s first corporate power purchase agreement for small modular reactors (SMRs), the stock price of innovative advanced SMR technology provider NuScale Power (NYSE: SMR) rose by more than 6% during Monday’s trading session. In comparison, the S&P 500 index only increased by 0.8% today.
With the rapid development of artificial intelligence (AI), many industries, especially capital-rich large tech companies, are showing increasing interest in nuclear energy solutions. Advanced nuclear technology companies are becoming favorites in the capital markets, such as Oklo (NYSE: OKLO) and NuScale Power.
NuScale is the supplier of the proprietary innovative advanced nuclear energy solution, the NuScale Power Module (NPM), which is the first SMR to receive standard design approval from the U.S. Nuclear Regulatory Commission (NRC). The company’s NPM is designed to complement renewable energy sources such as wind, solar, and hydropower. NuScale aims to drive the global energy transition by providing safe, scalable, and reliable carbon-free nuclear power.
On Monday, Google announced that it would purchase power generated by seven reactors built by nuclear energy startup Kairos Power, targeting the development and deployment of a total of 500 megawatts of nuclear power projects by 2035. Financial terms have not been disclosed.
Although NuScale is not directly benefiting from this exciting news, it aligns with the company’s business scope. The small modular reactors (SMRs) developed by NuScale can be manufactured in segments and then assembled on-site. This is undoubtedly an attractive solution for clients with tight resources and timelines.
Meanwhile, other tech giants have also recently reached similar nuclear energy development agreements, such as Microsoft and Oracle. Earlier this year, Amazon purchased a nuclear-powered data center from Talen Energy, and Microsoft signed the largest power purchase agreement in history, aiming to restart the long-closed Three Mile Island nuclear plant to provide clean energy for Microsoft’s cloud computing and AI projects.
Currently, energy demand continues to rise, particularly in the tech industry, which has a high demand for electricity. Large tech companies are seeking power supplies for the massive data centers needed to run AI systems, prompting utility companies to build more natural gas-fired plants while also sparking interest in nuclear power plants that provide clean energy around the clock.
The solutions provided by NuScale Power are cost-effective and resource-efficient. It is easy to envision that NuScale is likely to sign more development agreements with well-known companies in the tech industry in the future.
