A system dynamics (SD) analysis of Small Modular Reactors (SMRs) for data center power demand management and climate mitigation

The rapid growth of AI-driven workloads is intensifying energy challenges in data centers, prompting the need for sustainable and reliable power solutions. This study applies system dynamics (SD) modeling to examine the role of Small Modular Reactors (SMRs) within the data center value chain and their implications for energy supply and climate response. Simulation results over a 120-month period indicate that data center effectiveness steadily increases as adaptability to nuclear energy improves, while the irrationality associated with nuclear fuel declines over time. In hybrid energy data center value chains, effectiveness rises nearly twentyfold over 10 years. Comparative analysis shows that nuclear energy exhibits decreasing irrationality, unlike fossil and renewable energy sources, which show minimal change. Statistical evaluation further demonstrates that nuclear-based systems achieve higher mean and median effectiveness values than other energy groups. Overall, the findings highlight SMRs’ strong potential to support the growing energy demands of AI data centers, fostering resilient, efficient, and environmentally responsible digital infrastructure.