Deep in the heart of Oregon, a company called NuScale Power is betting big on a future where their miniature nuclear reactors become the lifeblood of the artificial intelligence boom. While analysts are busy crunching numbers and scrutinizing the Romanian RoPower project, a subtle shift in NuScale's language reveals a potentially seismic shift in their strategy – a laser focus on hyperscale data centers and AI as their primary growth engine.

Remember the days when a 10-megawatt data center was considered large? Those days are gone. Today, 100-megawatt behemoths are commonplace, and 1,000-megawatt power-hungry giants are on the horizon. These 24/7 energy consumers – data centers, AI platforms, and cloud storage – are on a relentless expansion spree, adding a new data center every three days according to Amazon Web Services.

And here's the kicker: they're desperate for clean, reliable power. Traditional energy sources are struggling to keep pace, and NuScale's SMR technology, with its small footprint, scalability, and baseload reliability, is emerging as a tantalizing solution.

NuScale's Q1 2024 earnings call transcript wasn't just about financial updates. It was a subtle but deliberate pitch to the tech giants, a siren song promising uninterrupted power in a world increasingly thirsty for electricity. CEO John Hopkins's words are telling. He describes an unprecedented sense of urgency among these tech behemoths, a 'burning platform' that's driving unprecedented collaboration even among commercial rivals.

This isn't just about meeting current demand; it's about anticipating the next wave of energy-intensive technologies like quantum computing. NuScale sees a window of opportunity, a chance to become the go-to power provider for the AI revolution.

The numbers speak for themselves. Data center electricity consumption is projected to triple between 2020 and 2030, an increase equivalent to powering a third of all U.S. homes. NuScale is already in advanced discussions with several hyperscale companies, with some even eyeing commercial operation dates before the end of this decade.

But there's a gamble inherent in this strategy. NuScale is placing an enormous bet on the continued explosive growth of the data economy and the tech industry's commitment to clean energy. If that growth falters, or if cheaper, more readily available alternatives emerge, NuScale's hyperscale gamble could backfire.

Here's where the analysis gets interesting. Assuming NuScale secures even a fraction of the projected data center demand, their revenue potential could be staggering. A single 12-module NuScale plant, capable of producing nearly 1 gigawatt of power, could easily command billions in revenue over its lifetime. If they land just five such contracts with hyperscale companies in the next five years, NuScale's current market cap of roughly $700 million could skyrocket.

This isn't without its risks, of course. NuScale still needs to prove its ability to deliver on these massive projects, navigate complex permitting processes, and compete with established energy providers. But if they pull it off, NuScale could be the tiny nuclear startup that powers the AI revolution and redefines the global energy landscape.

NuScale's Financial Performance (Q1 2024)

Projected Growth in Data Center Electricity Consumption

Data center electricity consumption is expected to triple between 2020 and 2030. This chart illustrates this projected growth.

"Fun Fact: NuScale's SMR technology is so safe, it can operate without the need for a trained shift technical advisor, a first since the Three Mile Island incident. This simplified control room operation is a significant advantage for potential customers, particularly those unfamiliar with nuclear power plant operations."