This report by the Development Bank of Japan (DBJ) analyzes global attention on nuclear power generation, particularly Small Modular Reactors (SMRs), as a response to increasing electricity demand and decarbonization, along with Japan's industrial strategy.
With the rapid increase in data centers, global data center electricity consumption is projected to reach approximately 945 TWh by 2030, equivalent to Japan's total electricity consumption, making it urgent to address both electricity demand and decarbonization. Against this backdrop, 25 countries including Japan announced at COP28 their commitment to triple global nuclear power generation capacity by 2050, and Japan's 7th Basic Energy Plan explicitly states the policy of maximizing nuclear power utilization.
Types and Characteristics of Next-Generation Advanced Reactors
Five technologies are attracting attention as next-generation advanced reactors: innovative light water reactors, high-temperature gas-cooled reactors, fast reactors, Small Modular Reactors (SMRs), and nuclear fusion. Innovative light water reactors are large-scale reactors based on existing technology with significantly enhanced safety measures and are close to commercial deployment. High-temperature gas-cooled reactors can supply high-temperature heat around 900°C and are expected to be applied for industrial uses. Fast reactors are being developed as technology to dramatically improve uranium utilization efficiency.
Features and Benefits of SMR Implementation
SMRs are nuclear reactors with output of 300,000 kW or less, featuring high safety through passive safety systems, underground installation, and miniaturization that reduces the probability of severe accidents. They offer advantages such as shorter construction periods, relaxed siting constraints, and factory mass production through modular design, with expected applications for specific demand customers (data centers and industrial clusters) and off-grid areas (remote islands and rural regions). The IEA predicts that if mass production is realized, SMR construction costs could fall below those of large reactors by 2040.
National Initiatives and Japan's Industrial Strategy
Currently, over 60 types of SMRs are being developed worldwide, with light water SMRs expected to lead in social implementation as they can leverage existing technology knowledge and supply chains. In the United States, active private sector initiatives are accompanied by regulatory and policy support development, with hyperscaler companies also showing interest in SMR adoption.
From a nuclear supply chain perspective, while the prolonged absence of new construction in Western countries has put the 10-million-component supply chain at risk of collapse, China and Russia have been strategically and continuously strengthening their capabilities through government leadership, rapidly expanding their international influence.
The article concludes that while sincere efforts to address concerns about safety and spent nuclear fuel disposal are essential prerequisites, continuous public-private efforts in the nuclear field, including participation in leading overseas projects, are important for Japan's decarbonization, industrial competitiveness enhancement, and security assurance.