The rapid expansion of Artificial Intelligence (“AI”) driven data centres is fuelling an unprecedented demand for energy. With AI workloads requiring significantly more power than traditional computing tasks, companies are turning to alternative energy sources to meet the growing demand. Small Modular Reactors (“SMRs”) have emerged as a potential digital lifesaver, offering a scalable, low-carbon energy solution that could metamorphosise Latin America’s digital infrastructure. 

According to Dr. Moises Levy, Managing Director at DCD Intelligence, “Nuclear energy is set to supply the new MW and GW workloads, with AI being the primary driver. What is referred to as ‘workloads’ is essentially what powers all internet searches. Every Google search consumes approximately 0.3 watts, whereas an AI query requires 10-15 watts.” This stark contrast in power consumption exemplifies the need for reliable, high-density energy sources. 

Conventional power grids are struggling to support the energy demands of hyperscale data centres. “Hundreds of MW and GW of data centres are being built, and the demand continues to grow. Conventional power plants are not prepared for this scale,” the managing director explained. Diesel and natural gas, though commonly used, are proving to be inefficient or insufficient. SMRs offer a viable solution, combining high energy density with sustainability benefits. 

“Hundreds of MW and GW of data centres are being built, and the demand continues to grow. Conventional power plants are not prepared for this scale.”

Dr. Moises Levy, DCD Intelligence, US

Although SMRs are still in the early stages of adoption in Latin America, global companies, particularly from the US and Europe, are taking the lead. These firms are nurturing partnerships with energy providers and governments to fast-track SMR deployment. 

Currently, Argentina, Brazil and Mexico are the only countries with operational nuclear power plants. However, none are presently focused on integrating SMRs into data centre energy supply chains. With growing interest in AI-driven infrastructure, regional players may look to international collaborations to develop SMR capabilities. “Could SMRs play a larger role? Yes, but not yet. Nothing is expected before 2030, as the technology is not as mature in Latin America as it is in the US for global adoption,” noted the research and market intelligence managing director.

The primary hurdle for SMR adoption in Latin America lies in regulatory approval. “SMRs offer significantly greater safety. The governments of the US and Europe are strongly in favour of this type of initiative.” The managing director elaborated, “The main challenge today lies in the regulatory approval process. Permits for their use are expected to take another 3-5 years. Some predict that with Trump in office, this process could be expedited.”  

Unlike North America and Europe, Latin America lacks a well-defined regulatory framework for SMRs. While governments are open to nuclear expansion, concerns around safety, waste management and operational oversight remain key challenges. “There are concerns about how to install and operate SMRs safely in Latin America,” Dr. Levy pointed out. Until clearer policies are established, large-scale SMR deployment is unlikely to materialise in the region. 

Beyond data centres, industries such as mining, manufacturing and agriculture stand to benefit from SMR adoption. “It will undoubtedly have an impact. Currently, 9 percent of the world’s electricity is generated by nuclear reactors,” an industry director highlighted. These sectors rely heavily on consistent and cost-effective energy sources, and nuclear power could significantly lower operational costs while enhancing sustainability efforts. 

“It [SMR adoption] will undoubtedly have an impact. Currently, 9 percent of the world’s electricity is generated by nuclear reactors.”

Managing Director at a research and market intelligence firm, US

For industries in Latin America, the feasibility of nuclear energy depends on several factors, including local infrastructure, workforce expertise and investment capabilities. While data centres have the most urgent need for nuclear power, other sectors still have access to alternative energy solutions.  

SMRs are just beginning to make their mark in Latin America, but the global energy race is already heating up. As AI adoption skyrockets, the demand for stable, sustainable energy will only grow. While the US and Europe are leading the way, Latin America is positioned to follow, though its progress “will depend heavily on local conditions, individual country circumstances and the availability of a skilled workforce,” the market intelligence director concluded. 

For now, the region remains an untapped gold mine for nuclear-powered AI data centres and industrial applications. The question isn’t if SMRs will take off in Latin America, but when and who will lead the way?