UK Planning Reform Green-Lights Data Centre SMR Potential
Small modular reactors (SMRs) are growing in popularity, particularly within the data centre industry, as business leaders hope they will spark a new era for nuclear power.
Technology giants like Google and Amazon have already invested in nuclear power to support its continued data centre expansions.
Nuclear power is virtually carbon free and provides electricity 24 hours a day. Although not a perfect solution, due to radioactive waste concerns, it has become increasingly desirable within the global technology industry as it attempts to cut emissions.
As the use of SMRs expands, nuclear-powered data centres are expected to become an even greater reality within the next decade. The International Energy Agency (IEA) says as projects, policies and investments in the nuclear energy space continue to increase, so does the desirability of SMRs.
Calling SMRs a “gamechanger for nuclear energy”, the IEA’s The Path to a New Era for Nuclear Energy report shares the major challenges standing in the way of current momentum and how to overcome them to usher in a new era.
The UK sees energy potential
Alongside this, the UK government will now permit more nuclear power building to be approved, removing previous restrictions that limited nuclear development to only eight sites.
Under Sir Keir Starmer, it is expected that planning rules will be reformed to facilitate the approval and construction of more nuclear power plants across England and Wales. This will enable SMRs to be built in the UK for the first time.
As a result of this, the government is also establishing a Nuclear Regulatory Taskforce to improve regulations and help more companies build nuclear facilities in the UK.
Simone Rossi, CEO of EDF in the UK, notes: “As a major operator, investor and developer, EDF welcomes the proposals designed to speed up new nuclear projects in the UK and unlock economic growth.
“Nuclear is essential to a secure, low carbon energy system and is the ideal partner to renewables.”
He adds: “There is a great opportunity to build new infrastructure across England and Wales, to replace aging stations and take advantage of available skills, existing grid connections and supportive communities.
“The opportunity will only be fully realised with the necessary reforms to planning and regulation, alongside continuing to build on the critical work at Hinkley Point C and Sizewell C to further develop skills and supply chains.”
Microsoft UK’s CEO Darren Hardman adds: “We welcome the government’s plans to accelerate the building of safe, modern nuclear as part of the energy mix. Economic growth will require increased energy supply for the UK, but we must not lose sight of our ambitions for a fully decarbonised grid.”
Reducing data centre emissions
The government is aiming to streamline the approval process for new reactor designs and align UK regulations more closely with its international partners.
Planning framework is being updated to include new nuclear technologies like SMRs, which in turn could provide greater flexibility to co-locate them with industrial sites that are more energy-intensive.
Sir Keir Starmer says: “This country hasn’t built a nuclear power station in decades. We've been let down and left behind.
“My government was elected to deliver change. I’ll take the radical decisions needed to wrestle Britain from its status quo slumber, to turbocharge our plan for change.”
The government is eager to not only enhance energy security, but also to create more jobs and transition the UK towards cleaner energy. This, in turn, stands to benefit the data centre industry, which is currently experiencing a sustainability overhaul.
Small and advanced modular reactors will provide greater flexibility to co-locate them with energy-intensive sites like AI data centres.
After the US has moved full-speed-ahead to invest in developing AI data centres, the UK is eager to follow suit. The country recently moved to prioritise national infrastructure, with UK Chancellor Rachel Reeves announcing plans to speed up the delivery of new data centres to support AI growth and innovation.
Energy Secretary Ed Miliband says: “Build, build, build — that is what Britain’s clean energy mission is all about.
“The British people have been left vulnerable to global energy markets for too long — and the only way out is to build our way to a new era of clean electricity.
“Nuclear power creates thousands of skilled jobs. That is what this government will deliver.”
The UK government’s move has been met with support, with Simon Bowen, Chair of Great British Nuclear, stating: “Nuclear energy is a powerful tool for growing the UK’s economy.
“By expanding the range of sites where safe, secure, reliable and clean nuclear energy plants can be built, there is huge potential to positively transform areas facing economic uncertainty.”
He adds: “Today’s announcement also signals exciting opportunities to co-locate nuclear energy generation on data centre sites and to decarbonise industrial processes.
“Nuclear is one of the safest and cleanest forms of energy generation. The new independent nuclear regulation taskforce will help unlock growth and investment by providing clarity and certainty while ensuring regulations are fit for purpose.”
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