Are Oklo and NuScale Power Still a Buy After Data Center Backlash?
Oklo and NuScale Power are facing challenges as data center construction faces backlash, potentially hurting their case for small modular reactors (SMRs).
Intelligence analysis by Qwen 2.5 (3B)
Oklo and NuScale Power, which specialize in small modular reactors (SMRs), are facing challenges due to public backlash against data centers, which could hurt their case for SMRs.
The AI industry needs a lot of power to work, and small reactors can help with that. But if people don't want data centers, they might not want small reactors either. So, small reactors might not get built as much.
Analysis
Public Backlash Against Data Centers
Public sentiment toward data centers is increasingly negative, with 70% of Americans opposing building data centers in their local areas. This backlash could impact the demand for small modular reactors (SMRs), which are particularly well-suited for co-locating with data center infrastructure.
AI Industry's Need for Power
The AI industry is rapidly growing and requires significant power. Small modular reactors (SMRs) are well-suited for this need, but the public backlash against data centers could slow their adoption.
Natural Gas as a Bridge
The public backlash against data centers may push the AI industry to focus more on conventional power plants, such as natural gas, which is a popular and readily available fuel. This could reduce the demand for small modular reactors (SMRs).
Timeline for Commercialization
Only two small modular reactors (SMRs) have been built worldwide, and NuScale Power and Oklo are still in the early stages of commercialization. The timeline for the first commercial small modular reactor in the U.S. may be pushed out further due to the public backlash against data centers.
Key points
- Public backlash against data centers could hurt the demand for small modular reactors (SMRs)
- Small reactors are well-suited for co-locating with data centers
- The AI industry needs a lot of power, and small reactors can help with that
- Natural gas is a popular and readily available fuel, which could reduce the demand for small reactors
- Only two small reactors have been built worldwide, and NuScale Power and Oklo are still in the early stages of commercialization
If the AI industry can find other ways to get the power it needs, small reactors might still be used. For example, they might use natural gas, which is a popular fuel.
If the AI industry can't find other ways to get the power it needs, small reactors might not get built at all. This could hurt the companies that make small reactors.
Market signals
- NG Public backlash against data centers could push the AI industry to focus more on natural gas, which is a popular and readily available fuel.
AI-generated analysis of potential market relevance. Not financial advice.
