Oklo and NuScale Power shares fell sharply on Aug. 30, as rising public opposition to data center construction and increased interest in natural gas raise doubts about the near-term case for small modular reactors.
Oklo shares dropped 5.62% on Aug. 30. NuScale Power fell 4.62% to $9.29, leaving the company with a market cap of $3.8 billion.
Public opposition to data centers mounts
A recent Gallup poll found that about 70% of Americans oppose data center construction in their own communities, with nearly half of respondents strongly opposed. Sixteen percent of opponents cite pollution concerns such as noise, air, and water pollution, on top of worries about water and energy use. The backlash comes even as, according to McKinsey & Co.: "global spending on data centers could reach $7 trillion by 2030."
SMRs carry a cost and timeline disadvantage
Small modular reactors cost more per megawatt than conventional nuclear plants, but their selling point has been speed: reactors can in theory be deployed in as little as two years, versus a decade or longer for a full-scale plant. Alphabet, Google's parent, is planning three conventional nuclear plants capable of producing at least 600 megawatts each, a sign that major AI players may lean toward long-term capacity over quick-build SMRs. Natural gas could serve as a bridge fuel until those larger plants come online, likely at lower operating costs than a comparable SMR.
Only two SMRs have ever been built
Regulatory and commercial hurdles remain steep. Only two SMR systems have ever been built worldwide, and NuScale has yet to commercialize its design, while Oklo does not yet have U.S. regulatory approval to begin construction. Neither company has a working commercial reactor to point to as the data center debate plays out around them.
Source: The Motley Fool
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