Rolls-Royce SMR pipped rivals across the two-year-long process and will build three SMR units in the UK as part of the Government's plan to invest more than £2.5 billion in small-scale reactors to power millions of homes.
Ed Miliband, the UK Energy Secretary, said the nuclear project will create thousands of jobs and grow regional economies while strengthening the country’s energy security.
“We are ending the no-nuclear status quo as part of our Plan for Change and are entering a golden age of nuclear with the biggest building programme in a generation.”
The Labour government overhauled planning rules for nuclear reactors back in February to make it easier for the development of SMRs, which can be placed on or near data centre sites.
The UK government’s SMR project’s roots go back as far as 2015, when David Cameron’s Conservative government launched a call for evidence on small reactors.
Expanding the country’s energy landscape has been a central point of the Labour government under Sir Keir Starmer, with plans to double onshore wind and triple solar power by 2030 to reduce reliance on fossil fuels.
Rolls-Royce SMR was found to have been some 18 months ahead of its competition during the regulatory assessment process, and will now work with Great British Energy - Nuclear to create a development company to power the project.
The Rolls-Royce SMRs, alongside the Sizewell C plant in Suffolk, are expected to come online sometime in the 2030s, with the government suggesting that these projects, when combined with the new station at Hinkley Point C, will deliver more nuclear to the grid than over the previous half century.
Tufan Erginbilgic, CEO of Rolls-Royce, said: This is a very significant milestone for our business and Rolls-Royce SMR. It is a vote of confidence in our unique nuclear capabilities, which will be recognised by governments around the world. It is also evidence that the strategic choices we have made in the transformation of Rolls-Royce are delivering. 3
“I believe the value of Rolls-Royce SMR will grow materially from here as we successfully execute and deliver on the potential of this venture. I would like to thank the team in Rolls-Royce SMR for their hard work and dedication in getting to this important stage.”
Simon Bowen, chairman of Great British Energy – Nuclear, said: “This announcement is a defining moment for the UK’s energy and industrial future.
“By selecting a preferred bidder, we are taking a decisive step toward delivering clean, secure, and sovereign power. This is about more than energy—it’s about revitalising British industry, creating thousands of skilled jobs, and building a platform for long-term economic growth.”
SMRs are increasingly being eyed by data centre operators as the answer for ever-increasing power needs, with hyperscalers including Amazon, Google, and Microsoft racing ahead to pen deals with firms developing small-scale reactors.
Meta became the latest big name to back nuclear after it penned a 20-year deal last week to source nuclear energy from a plant previously consigned to be decommissioned.
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