Microreactors, Macro Strategy: How the DoD's SMR Push Could Reshape Energy Innovation and Infrastructure

The U.S. Department of Defense (DoD) has initiated a significant shift in its energy strategy by selecting eight commercial small modular reactor (SMR) vendors to develop and prototype on-site microreactors. This initiative, part of the Advanced Nuclear Power for Installations (ANPI) program led by the Defense Innovation Unit (DIU), underscores a broader shift toward resilient, distributed energy infrastructure to meet the evolving demands of national security and energy-intensive sectors such as data centers and edge computing networks (Defense Innovation Unit [DIU], 2025).

The Strategic Role of DIU and Energy Innovation

Established in 2015, the DIU aims to accelerate the adoption of commercial technologies within the U.S. military. By selecting commercial SMR developers, the DIU emphasizes the tactical and systemic importance of deployable, scalable energy systems beyond traditional utility-scale nuclear power. The selected vendors are now eligible to apply for funding to research, develop, and prototype microreactors capable of delivering between 3 MW and 10 MW of power by 2030. This approach leverages existing civil regulatory pathways via the Nuclear Regulatory Commission (NRC) to expedite commercial development and strengthen domestic supply chains (DIU, 2025).

The eight selected vendors are:

Antares Nuclear, Inc.
BWXT Advanced Technologies LLC
General Atomics Electromagnetic Systems
Kairos Power, LLC
Oklo Inc.
Radiant Industries Incorporated
Westinghouse Government Services
X-Energy, LLC

Why Microreactors, and Why Now?

Global volatility, infrastructure vulnerabilities, and increasing energy demands from AI and compute-intensive platforms have intensified the need for energy independence. Microreactors offer a compelling solution: they can be deployed closer to the point of need, require less fuel, and operate with minimal on-site personnel. Additionally, they can integrate with renewable energy sources, providing baseline capacity in hybrid energy ecosystems. The DoD's initiative reflects a recognition that clean, compact, high-output energy is essential strategic infrastructure (U.S. Department of Energy [DOE], 2025).

Data Centers and the Edge: A Symbiotic Opportunity

One of the most compelling implications of this initiative lies in the intersection of microreactors and digital infrastructure. Hyperscale and edge data centers face mounting pressure to decarbonize while maintaining 24/7 uptime. The ability to co-locate compact nuclear power sources offers a potential breakthrough: not only can microreactors meet peak energy demands, but they could also reduce dependency on unstable grids and fossil-fuel-based backup systems.

Several vendors are already demonstrating advanced capabilities:

Westinghouse eVinci: This transportable microreactor utilizes advanced heat pipe technology and TRISO fuel, designed for deployment in remote environments. It is capable of producing up to 5 MW of electricity and can operate for at least eight years without refueling (Westinghouse Electric Company, 2025).
Radiant Kaleidos: A 1.2 MW high-temperature gas-cooled microreactor intended to replace diesel generators. It is designed to be deployable in a single shipping container and operate for five or more years before refueling (Radiant Industries, 2025).
Antares R1: A sodium heat pipe-cooled system using TRISO fuel with a projected 100–300 kW output, suited for resilient, low-maintenance use cases. The reactor is designed to operate continuously for up to three years without refueling (Antares Nuclear, 2025).

These designs are progressing through development and testing phases, with potential operations commencing as early as 2026 at facilities like the Idaho National Laboratory (DOE, 2025).

Signals to the Market

The DoD's public support for SMRs sends a powerful signal to capital markets and commercial stakeholders. It elevates the legitimacy of modular nuclear solutions and de-risks early-stage R&D for dual-use vendors. This initiative creates a model for public-private partnerships based on speed, scalability, and strategic fit, rather than bureaucracy. From a commercialization standpoint, it may serve as a catalyst for faster approvals, wider pilot opportunities, and clearer export pathways for American energy innovation. For early-stage SMR developers, it brings more than funding—it brings validation (Reuters, 2025).

Conclusion

The DIU's recent announcement marks a key change in the government's strategy towards energy resilience. This move is expected to create new opportunities for dual-use technology commercialization. Innovation leaders should not interpret this as a niche pilot program, but rather as a clear indicator of where the energy-innovation nexus is headed. Those who prepare now will be best positioned to lead in a future where secure, modular, and clean energy is a foundational asset across both national security and commercial enterprise.

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References

Antares Nuclear. (2025). Antares R1 microreactor. Retrieved from https://antaresindustries.com/

Defense Innovation Unit. (2025, April 10). DoD selects eligible companies for the Advanced Nuclear Power for Installations Program. Retrieved from https://www.diu.mil/latest/DOD-selects-eligible-companies-for-the-Advanced-Nuclear-Power-for-Installations-Program

Radiant Industries. (2025). Kaleidos microreactor. Retrieved from https://www.radiantnuclear.com/

Reuters. (2025, March 27). Microreactor builders eye share of growing nuclear market. Retrieved from https://www.reuters.com/business/energy/microreactor-builders-eye-share-growing-nuclear-market-2025-03-27/

U.S. Department of Energy. (2025, March 31). Idaho National Laboratory unveils first-of-a-kind molten salt test loop. Retrieved from https://www.energy.gov/ne/articles/idaho-national-laboratory-unveils-first-kind-molten-salt-test-loop

Westinghouse Electric Company. (2025). eVinci™ microreactor. Retrieved from https://www.westinghousenuclear.com/evinci