Microsoft, Google and Amazon are buying nuclear power for data centres – and the UK just said private companies can now build their own
The government has published its advanced nuclear framework, which is designed to support the development, commercialisation and deployment of private innovative nuclear projects in the UK.
Writing in the report’s foreword, Lord Vallance (Minister for Science, Innovation, Research and Nuclear), explains that the government is taking the next steps to power Britain’s future by being among the first to champion the deployment of cutting-edge advanced nuclear projects driven by the private sector.
“These technologies offer new opportunities to deploy capacity more quickly, at a lower cost, and with greater flexibility, helping us to meet rising demand whilst cutting emissions,” he said.
“The framework sets out how we will support this. It introduces the UK Advanced Nuclear Pipeline, which provides a route for privately led projects, helping projects unlock private investment and creating an environment that bolsters developers’ confidence to undertake nuclear projects at their own commercial risk.”
Going nuclear
The report speaks at length about going beyond government-backed projects and enabling privately led advanced nuclear projects so that ‘credible developers can rapidly progress projects’.
Traditionally, nuclear projects have relied on significant state underwriting or delivery by state-owned entities, reflecting the scale, complexity, and capital intensity of gigawatt-scale plants. Advanced nuclear technologies have the potential to transform this model.
Their modular design enables factory-based fabrication and replicable units, reducing construction timelines and improving predictability. With far smaller capital requirements than conventional large reactors, these technologies open the door to nuclear projects owned, delivered and financed by the private sector.
“Industry engagement indicates that privately led projects are viable in the UK, where the enabling environment is clear. Needs vary by technology and business model, supplying electricity to the grid, delivering heat to industry, providing private-wire power to data centres, or hybrid combinations, and so too will funding and financing requirements and the form of support sought from government,” the report states.”
A US-led initiative?
Recent developments demonstrate the potential for privately funded projects to become a reality, with commercial agreements being announced in the US and Europe for First of a Kind (FOAK) projects, and deployment plans being announced in the UK.
There is a noticeable increase in demand from end-users, including Microsoft, Amazon, and Google, who have already signed Power Purchase Agreements (PPAs) with advanced nuclear vendors to supply electricity to future data centres in the US creating a market for advanced nuclear.
This trend is expected to intensify as AI workloads scale, with the UK’s emerging AI Growth Zones (AIGZs) and other large AI clusters projected to drive substantial new demand for clean, firm power.
Developments to keep an eye on
The scale of the opportunity for the UK was made clear in September 2025, when, during the state visit by the US President, a series of industry announcements were made, with companies setting out their intentions to deploy advanced nuclear technologies in the UK:
- Holtec, EDF and Tritax plan to transform the former Cottam coal-fired power station in Nottinghamshire into a hub for advanced data centres powered by small modular reactors, a project worth £11 billion.
- X-Energy and Centrica plan to build up to 12 advanced modular reactors in Hartlepool, as part of a UK-wide programme targeting 6GW of nuclear capacity.
- Last Energy and DP World intend to create one of the world’s frst micro modular nuclear plants at London Gateway, backed by £80 million in private investment.
- Urenco and Radiant signed a £4 million deal to supply HALEU fuel to the US, alongside plans for an Advanced Fuels Facility in the UK.
- TerraPower and KBR announced they were evaluating UK sites for Natrium reactors, with each project potentially supporting 1,600 construction jobs.
Government to provide funding
While the framework cautions that a development being included in the pipeline does not guarantee government support, the report does note that the government is prepared to deploy the National Wealth Fund (NWF) to help some projects see the light of day.
“To further support the deployment of private advanced nuclear projects, the government, through the NWF, its independent principal investor and policy bank, can provide support,” it states.
“With £27.8 billion in capital, the NWF is designed to support projects that align with the UK’s strategic priorities, including clean energy and economic growth, while delivering value for money and returns for the taxpayer.”
“Government recognises that nuclear development presents unique challenges. To support this, the NWF is the natural home of government finance for new projects. NWF will focus engagement on projects that are members of the pipeline.”
