The UK government unveiled its Advanced Nuclear Framework on February 4, marking its first structured push to attract private investment in small modular reactors for AI datacenters and industrial power.
The framework, opening for applications in March, offers a "concierge-style" service to guide developers through planning and regulatory requirements. Great British Energy-Nuclear will assess proposals based on technology maturity, developer capability, and financing plans. Successful applicants receive in-principle government endorsement, designed to unlock private capital.
What this means in practice: The government is betting on nuclear to power its AI ambitions while competitors pursue renewables. Global datacenter electricity demand is projected to double by 2030, and the UK wants advanced modular reactors to fill that gap.
The pipeline already includes X-Energy and Centrica's plan for 12 reactors at Hartlepool, plus Holtec, EDF, and Tritax targeting the Cottam site in Nottinghamshire. TerraPower is exploring UK deployment of its Natrium technology.
The real question is timing and economics. SMRs promise factory prefabrication and faster assembly than traditional reactors, with capacity around 300MW per unit, roughly a third of conventional plants. According to Omdia principal analyst Alan Howard, trials are coming but commercial viability won't arrive until the 2030s. The UK's first SMR, announced last November for Wylfa in Wales, follows that timeline.
Worth noting: One 2025 analysis found renewables already cost less for datacenter power than SMRs. The framework's success depends on whether private investors view advanced nuclear as competitive against renewable-plus-battery alternatives, especially given the multi-year deployment lag.
For APAC operators: This signals Western competition for AI infrastructure leadership. Similar nuclear-for-AI frameworks may emerge in markets like Australia or Singapore as governments chase the same datacenter boom. The trade-offs between nuclear timelines and renewable costs will play out globally, not just in Britain.