Electricity demand is rising after decades of relatively flat growth. In the U.S. alone, demand is expected to increase 49% by 2050, placing new demands on a power system that was not built to support it.1 Data centers, electric vehicles, and industrial activity are increasing the need for reliable power, while new power plants and grid connections can take years to bring online.
Nuclear power can provide reliable, low-emissions electricity, but the time and cost involved in developing conventional reactors have historically limited new construction. Nuclear can also strengthen energy security by diversifying the power mix with steady generation that is less exposed to weather variability and fossil-fuel price swings. Small modular reactors, or SMRs, could help address nuclear’s historic limitations: their smaller size and factory-built components may allow nuclear capacity to come online more quickly and be added in stages, while also making it possible to serve remote sites or generate power closer to where it is used. SMRs could meaningfully contribute to the broader goal of tripling global nuclear capacity by 2050.2
SMRs build on more than 70 years of military experience with nuclear microreactors, but their commercial use remains at an early stage.3 Recent government support, customer commitments, and a growing pipeline of projects are bringing the industry closer to its first commercial deployments in North America, as interest grows in how SMRs could help meet rising electricity demand.
To help investors access this emerging segment, we are introducing the Global X Small Modular Reactor ETF (SMRZ), an actively managed ETF focused on companies developing SMRs and the specialized suppliers that support them.
Key Takeaways
New dispatchable power additions could cover the equivalent of only 42% of projected U.S. electricity demand growth through 2030, highlighting the challenge of matching new supply with rising demand.4
SMRs could make nuclear power more flexible to deploy: factory-built modules are designed to shorten construction timelines and reduce upfront Capital Expenditures (CapEx), while allowing operators to add reliable, low-emissions capacity in stages, including near existing grids or at remote, off-grid sites.
We believe the industry is entering an inflection point. Two commercial SMR sites in Russia and China represent about 280 MW of operating capacity, while North American projects target first power around 2030.5,6,7 By 2050, over 1,000 SMRs are projected to be generating power worldwide.8
The Global X Small Modular Reactor ETF (SMRZ) offers focused exposure to SMR developers and select companies supplying fuel, components, and technology.
Rising Power Demand is Renewing the Case for Nuclear
After years of modest growth, U.S. electricity demand could rise substantially, driven by growth in data centers, electric vehicles, and industrial activity. Data centers alone could account for 20% of U.S. electricity demand by 2035, up from about 6% today.9 The scale-up to meet that demand, however, will take time. Through 2030, new dispatchable supply additions could amount to only 42% of projected new U.S. power demand.10
Nuclear power is uniquely positioned to help meet this demand. Nuclear plants can produce electricity around the clock and deliver consistent output, while generating lifecycle emissions comparable to wind, among the lowest of any power source.11 Yet conventional reactors can take 8 to 15 years and more than $10 billion to build.12,13 Each project requires site-specific licensing, construction, and review, so costs and timelines can vary widely and limit how quickly nuclear capacity can grow over the next 25 years.
Nuclear’s current fleet is also limited. The fleet, in general, is aging. 156 GW of nuclear capacity is expected to retire by 2050, compared with about 340 GW of projected additions.14 Retirements could therefore absorb nearly half of new capacity, limiting the net increase in operating nuclear power.15
SMRs Could Make Nuclear Power Faster and More Flexible to Deploy
As countries pursue the goal of tripling global nuclear capacity by 2050, they will need ways to bring new nuclear power online more quickly and at lower cost.16 SMRs are being developed as one potential solution.
SMRs are designed around standardized modules that can be built in factories, transported, and assembled on site. Shifting more work to factories and applying standardized designs across projects could shorten project timelines and reduce upfront construction CapEx, with costs potentially falling as production scales. Some designs target factory-built construction for up to 80% of a project.17 Standardized designs could ease the regulatory burden by allowing developers to reuse parts of the design review and licensing work across projects, potentially shortening approval timelines while preserving site-specific reviews. Their smaller size could also allow a more compact footprint, while a modular approach could let developers start with one unit and add capacity as demand grows.
SMRs are moving from early deployments toward a broader commercial pipeline. Construction timelines are estimated at three to five years today, with the potential to fall to two to three years as the industry matures.18 Those estimates are expected to become clearer as projects are completed and developers gain experience with successive builds.
Two commercial SMRs are already in use, one in Russia and one in China, with about 280 MW of combined capacity.19,20 Another 80 SMR projects are in development worldwide, and the industry may be approaching an inflection point as developers and suppliers reach key regulatory milestones.21 In 2025, the U.S. Nuclear Regulatory Commission (NRC) approved NuScale’s US460 standard reactor design.22 The approval gives NuScale and its prospective project partners a head start: future US460 projects can build on the NRC’s review of the reactor design, potentially only requiring site-specific approvals. GE Vernova Hitachi’s BWRX-300 has advanced through construction licensing in Ontario and, most recently, received the first U.S. construction permit for a commercial SMR at TVA’s Clinch River project in Tennessee.23,24 These steps bring North American SMR projects closer to first power – a feat expected by 2030.25
SMRs Could Become a Competitive Off-Grid Option as Deployment Scales
One particularly beneficial use case for SMRs is off-grid power. In 2025, the capacity of U.S. projects waiting in interconnection queues exceeded installed capacity by about 50%, with projects taking a median of five years from connection to request to completion.26 For data centers, manufacturers, mines, and remote communities, those delays are shifting focus towards power generated at or near the site, bypassing grid interconnections altogether.
For data center developers, a grid connection can take longer than constructing the facility itself. Onsite generation could help close that timing gap. Nearly two-thirds of data center developers are evaluating onsite power and about 45 GW of SMR capacity has been announced for data centers, almost entirely in the United States.27 Even for data centers that are close enough to the grid, off-grid power could ease competition for electricity and limit pressure on residents’ bills.
SMRs could ultimately bring reliable, low-emissions nuclear power directly to sites with large or remote energy needs. Today, first projects may take longer to deliver power and cost more per megawatt-hour than established onsite options such as natural gas generators and fuel cells.28 With repeated builds and greater scale, timelines and costs could fall, making SMRs more competitive with those alternatives and potentially less costly than securing a grid connection.29
That potential is drawing partnerships from utilities and major technology companies. Ontario Power Generation and GE Vernova Hitachi are advancing a four-reactor project in Canada; Google is working with Kairos Power on an initial reactor and additional units; Meta and Oklo, alongside other developers, have outlined multi-reactor plans; and Amazon has backed X-energy’s development plans.30,31,32,33 Together, these partnerships give SMR developers the utility partners, prospective power buyers, and investment needed to move projects forward – an important step toward making SMRs a scalable source of power for large energy users.
SMRZ Provides Focused Exposure to an Emerging Industry
SMRZ offers investors a focused way to access companies working to bring small modular reactors to market. As demand grows for reliable, low-emissions power, the ETF invests across small module reactor developers and the specialized fuel, component, and technology suppliers that could help make SMRs a scalable part of the energy mix. The actively managed fund uses the Akros Small Modular Reactor Index as a reference for an initial set of potential SMR Companies. The index targets up to 15 companies and gives greater weight to the two companies with greater SMR exposure.
The universe spans established businesses with significant SMR-related revenue and earlier-stage developers that qualify through relevant contracts, research agreements, or patents. That reach across the value chain gives investors exposure to both companies supporting projects today and innovators working toward future deployments. Some developers do not yet generate revenue, and their commercial prospects depend on projects still in development.
For investors with broader electrification or nuclear exposure, SMRZ may serve as a focused complement, adding targeted exposure to companies developing SMRs and the specialized ecosystem around them. The fund’s performance will depend on the industry’s ability to secure approvals, finance and build projects, and attract customers. The expense ratio is 0.75%.
Conclusion: SMRs Could Broaden Nuclear Power’s Reach
SMRs could expand nuclear power’s role by making new capacity more flexible to build and locate. As early projects advance, the industry is approaching a pivotal point where modular designs could deliver reliable power at commercial scale. SMRZ gives investors focused exposure to the developers and specialized suppliers working to make that next phase of nuclear power a reality – all in one U.S.-listed ETF.
Related ETFs
SMRZ – Global X Small Modular Reactor ETF
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