A new generation of nuclear producers, called small modular reactors (SMRs), are attracting the attention of Big Tech companies as they scramble to balance climbing power demands stemming from A.I. projects with clean energy goals. These small reactors have a power capacity of 300 megawatts—enough to power roughly 250,000 U.S. homes—and are about a third the size of the traditional nuclear reactor. Ideally, SMRs can be built in a process similar to an assembly line and easily put together at the site. But the cost of spearheading a first-of-its-kind project, coupled with a shaky regulatory environment, threatens efforts to commercialize the technology in the U.S.

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The development of large language models, which demand and consume enormous amounts of energy, has set off a scramble among Big Tech firms to secure more clean power. The U.S. is the fastest growing market for data centers, according to McKinsey, which forecasts demand to more than triple by 2030 to 80 gigawatts annually.

All this demand is disrupting already strained efforts to move towards a carbon-free grid. The Department of........

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