China Deploys Nuclear Power to Fuel AI Growth

China is accelerating the use of nuclear energy to supply AI compute, prioritizing Small Modular Reactors such as Linglong One (ACP100), developed by China National Nuclear Corporation (CNNC). The Linglong One project in Hainan is expected to enter commercial operation in the first half of 2026, producing roughly 1 billion kWh annually and forming part of a planned "nuclear + computing" industrial park.

SMRs are smaller, factory-built nuclear units that provide continuous, 24/7 baseload power and can be sited closer to load centers than large reactors. Key practitioner-facing attributes:

• •Flexible siting: SMRs fit closer to existing or planned data-center campuses, reducing transmission losses and permitting colocated cooling and waste-heat reuse.
• •Deployment speed and modularity: Factory fabrication aims to shorten build cycles versus traditional reactors, supporting staged capacity additions as compute demand grows.
• •Operational profile: Continuous, low-carbon power reduces reliance on volatile gas markets and intermittent renewables, stabilizing PUE and availability for long-duration training and inference runs.

AI compute demand is increasingly constrained by energy supply and carbon targets. Industry leaders have framed compute as a strategic commodity, and China's pivot to SMRs aligns energy policy with national AI ambitions. The global SMR market is projected to scale substantially by the 2030s, and China's early operational lead with Linglong One positions domestic data-center operators and cloud providers to secure dedicated, low-carbon power. For ML infrastructure teams this affects long-term procurement, potential power purchase agreements, and decisions about where to locate training clusters.

Cost-per-kWh vs large reactors and renewables remains uncertain, and regulatory, safety, and public-acceptance factors will shape rollout speed. Integration challenges include grid interconnection, permitting for colocated compute facilities, and operational resilience for bursty AI loads.

Watch commercial pricing and contract structures for SMR-sourced electricity, announcements of colocated hyperscale data centers in Hainan or other SMR hubs, and parallel SMR development programs in the US and UK that will affect global supply and standards.