Syllabus: GS3/Science and Technology
Context
- India is exploring the use of Small Modular Reactors (SMRs) to meet the surging electricity demand from AI-driven and data-intensive data centres.
Rising Power Demand from Data Centres
- The demand for data centres in India is being driven by the need for data storage due to India’s Digital India push, data-localisation policies, expanding internet users and the 5G rollout which is expected to enable adoption of data intensive technologies such as IoTs and AI.
- Global electricity supplied to data centres is projected to rise from ~460 TWh in 2024 to over 1,000 TWh by 2030 and to about 1,300 TWh by 2035.
- Power Demand by Data Centres: AI workloads use large numbers of Graphic Processing Units (GPUs) with individual racks consuming 80-150 KW compared to 15-20 KW for traditional enterprise servers.
- This computational intensity drives an insatiable demand for electricity, making AI the most significant driver of increased energy consumption within the data centre sector.
- This rising demand has led major tech companies like Google and Microsoft to turn to nuclear power solutions for reliable and carbon-free energy.
Need for Small Modular Reactors (SMRs)
- AI-driven data centres need sustainable and clean energy solutions to meet their rapidly rising power demand.
- While renewable energy has been the first choice for companies, it comes with inherent challenges of intermittency and inadequate storage. Here Nuclear power offers a viable solution by providing a clean, round-the-clock power supply.
- SMRs are preferred because they combine enhanced safety through flexibility and scalability for incremental capacity addition, adaptability to remote or off-grid applications, and cost-effective construction enabled by prefabrication.
| What are Small Modular Reactors (SMRs)? – Small modular reactors (SMRs) are advanced nuclear reactors with a power capacity of up to 300 MW(e) per unit, roughly one-third the generating capacity of traditional nuclear power plants. 1. Small – physically a fraction of the size of a conventional nuclear power reactor. 2. Modular – making it possible for systems and components to be factory-assembled and transported as a unit to a location for installation. 3. Reactors – harnessing nuclear fission to generate heat to produce energy. – There are four four main types of SMR i.e., light water, high temperature gas, liquid metal, and molten salt. – At present, only two Small Modular Reactor projects have become operational worldwide; 1. Russia’s Akademik Lomonosov floating power unit, equipped with two 35 MWe modules and in commercial use since 2020, and 2. China’s HTR-PM demonstration project, which was grid-connected in 2021 and achieved full commercial operations in 2023. |
What are the Concerns?
- Regulatory Challenges: The current nuclear regulatory framework is primarily designed for large-scale reactors.
- The possibility of using SMRs to produce materials for nuclear warheads and co-locating them with military sites raises non-proliferation concerns.
- Legal Hurdles: India’s
- , channels operators’ liability to equipment suppliers, deterring foreign investors due to financial risk concerns.
- High Initial Costs: Although SMRs are designed to be more cost-effective in the long run, the initial capital investment is significant.
- Waste Management: Handling and disposing of nuclear waste remains a significant challenge.
- Supply Chain and Manufacturing: Developing a robust supply chain for the components of SMRs and ensuring quality manufacturing processes are critical for their success.
Global SMR regulatory reforms
- To address these challenges, countries around the world are reforming their SMR regulations in six main ways:
- Technology-neutral frameworks replacing large reactor-specific rules;
- Streamlined licensing including fleet approvals and combined construction-operating licences;
- Modular manufacturing accommodation with factory fabrication certification;
- International harmonisation through International Atomic Energy Agency (IAEA) standards and mutual design recognition;
- Risk-informed requirements adjusting emergency planning zones and staffing proportional to smaller facility risks; and
- Accelerated deployment pathways for follow-on units.
India’s efforts towards SMRs
- Research and development on SMRs are ongoing at the Bhabha Atomic Research Centre (BARC) in Mumbai.
- The Bharat Small Reactor (BSR) is a notable project under this initiative which aims to re-engineer existing reactors to incorporate additional safety features and enhance their efficiency.
- India had announced a Rs 20,000 crore R&D mission for development of small modular reactors (SMRs).
- India is also targeting the deployment of at least five of these indigenously developed reactors by 2033.
- India and France have launched a cooperation program focused on SMRs and advanced modular reactors (AMRs).
Way Ahead
- Data centres are central to India’s digital economy and AI future, but their energy intensity poses a sustainability dilemma.
- SMRs present a strategic opportunity: ensuring reliable, green power while boosting domestic nuclear manufacturing and international collaborations.
- However, legislative reforms, addressing liability concerns, and ensuring safety and public trust will be critical to translating this vision into reality.
Source: TH
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