NuScale Power Is Closing In on a Deal That Could Transform the Small Modular Reactor Industry

NuScale Power (NYSE: SMR) has developed some of the nuclear power industry's most promising technology for small modular reactors (SMRs), which could make nuclear power more affordable, adaptable, and scalable. And as demand for electricity to power artificial intelligence data centers continues to soar, the time could be right for SMRs to step into the spotlight.

So far, NuScale is the only company that has gotten a small modular reactor design approved by the U.S. Nuclear Regulatory Commission (NRC). But is its technology ready to go from "promising" to "proven?"

Based on what management said on the company's second-quarter earnings call on Aug. 5, NuScale might be getting closer to the final stages of a game-changing nuclear energy deal with the Tennessee Valley Authority (TVA).

That deal could be central to the company's future, but uncertainty and risks remain.

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NuScale's TVA deal: 6 gigawatts of nuclear power

In September 2025, the TVA announced that it had signed an agreement with ENTRA1 Energy, NuScale's strategic partner, to develop plants capable of providing up to 6 gigawatts of new nuclear power generation. ENTRA1 would build the nuclear plants, while NuScale would provide the small modular reactors to power them.

If and when they're completed, these plants would provide enough energy to power about 4.5 million homes or 60 data centers. As of 2025, the entire U.S. nuclear energy industry generated 97 gigawatts of power, so this single project would boost total U.S. nuclear energy production by about 6.2%.

That would all be great news for the outlook for SMRs. But there's a lot of uncertainty about when or if it will become a reality.

Will the NuScale TVA deal happen?

As of this writing, the TVA's deal with NuScale is not yet final. There's a non-binding agreement, but no power purchase agreement (PPA) to buy nuclear energy or start the process of breaking ground for construction of the nuclear plants. That means NuScale isn't making any money from it yet.

On the Q2 earnings call, NuScale CEO John Hopkins said that "we're extremely encouraged" by the conversations with the TVA and ENTRA1. Hopkins understood that the discussions were "progressing well" and "when the agreement is signed, NuScale will be ready to implement."

If or when the TVA signs on the dotted line, this project could be a game-changer for the company and its stock. But investors are getting impatient. NuScale's share price has declined by about 75% over the past year.

For the second quarter, the company reported only $75,000 of revenue, down from $8.05 million in the prior-year period. It has about $1.9 billion in cash on its books, which could be enough liquidity to keep it operating until it can successfully commercialize its technology. But NuScale stock was recently downgraded by a prominent UBS analyst.

NuScale's advanced SMR technology has helped make it one of the most-promising nuclear energy stocks. But whether it's the TVA deal or other opportunities, this company needs to sign some money-making deals sometime soon.

Ben Gran has no position in any of the stocks mentioned. The Motley Fool recommends NuScale Power. The Motley Fool has a disclosure policy.