Nuclear Power’s $100 Billion Waste Problem, SMRs, and Data Center Demand Challenge Energy Transition

Nuclear power remains a central component of the global energy transition, valued for its high capacity factor, low carbon footprint, and reliability. However, challenges persist, particularly regarding the management of nuclear waste, which is estimated to be a $100 billion issue in the United States alone. Industry experts emphasize the necessity of permanently burying radioactive waste to ensure the viability of nuclear energy. While small modular reactors (SMRs) have been proposed as a solution, some analysts argue that they are neither small, cheap, nor scalable, and that they divert attention from the broader crisis of declining affordable fossil fuels. Additionally, nuclear power's reliance on a fossil-fueled industrial system limits its potential to fully replace traditional energy sources. Advances in technology and increasing demand from data centers are expected to shape the future of nuclear power through 2025 and beyond, but funding uncertainties and the evolving energy grid landscape could impact its value proposition.