Singapore – Faced with the escalating energy consumption of its rapidly expanding data center sector and ambitious decarbonization objectives, Singapore is seriously considering the integration of nuclear energy, with a particular focus on Small Modular Reactors (SMRs), into its energy mix.
"Nuclear energy is part of a long-term solution for decarbonization and energy security," stated Yoon Young Kim, Singapore and Brunei Cluster President at Schneider Electric, highlighting the potential of SMRs as an efficient energy source, especially in data center-dense regions like Singapore. According to the U.S. Energy Information Administration (EIA), nuclear power plants in the U.S. operated at a 92.3% capacity factor in 2024, demonstrating reliability more than twice that of natural gas power plants.
SMRs offer several advantages, including their smaller size, making them suitable for Singapore's limited land area; factory fabrication for faster installation and improved quality control; and lower water consumption compared to solar power.
However, the adoption of SMRs is not without its challenges. Safety concerns, nuclear waste management, and high upfront costs remain significant hurdles. Sanjeev Gupta, Asia-Pacific Energy and Resources Markets Leader at Ernst & Young (EY), emphasized that "nuclear energy provides high energy density and low greenhouse gas emissions, but it comes with safety issues, waste disposal challenges, and high initial costs." He advocated for an energy mix that combines various sources, including nuclear, hydrogen, and imported renewable energy.
The Singaporean government is actively pursuing nuclear energy development. The 2025 budget demonstrated this commitment, and in August 2024, Singapore signed a civilian nuclear cooperation agreement with the United States. Furthermore, the government has allocated an additional $5 billion to the Future Energy Fund to accelerate the development of energy transition infrastructure, such as subsea cables for low-carbon electricity imports and hydrogen terminals and pipelines.
Dhinita Setiawati, a Southeast Asia Electricity Policy Analyst at the energy think tank Ember, suggested that the impact of SMRs on Singapore's energy mix might be limited, proposing the exploration of alternative solutions. Nevertheless, Singapore is prioritizing nuclear power, including SMRs, as a vital energy source to address the increasing power demands of its data centers and achieve its carbon neutrality goals.
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