Dominion’s SMR Strategy 2025: Powering the AI Boom with Next-Gen Nuclear

Industry Adoption: How AI Demand Accelerated Dominion’s SMR Commercialization Plans

Dominion Energy has pivoted from early-stage exploration of advanced nuclear to actively planning the commercial deployment of Small Modular Reactors (SMRs), a strategic shift driven directly by the massive power requirements of the artificial intelligence industry.

• Between 2021 and 2024, Dominion’s focus was on optimizing its existing nuclear fleet with technologies like Boston Dynamics’ Spot robot for radiation surveys and exploring future concepts like fusion through a partnership with Commonwealth Fusion Systems (CFS). This period established operational expertise but kept next-generation nuclear as a long-term option.
• The strategic inflection point occurred in October 2024 with the signing of a Memorandum of Understanding (MOU) with Amazon to explore a 300 MW SMR project. This moved SMRs from a theoretical component of planning documents to a tangible project with a key anchor customer.
• In 2025, this plan accelerated significantly. In July 2025, Dominion formally proposed deploying SMRs at its North Anna nuclear site. This was followed by reports of Amazon committing $500 million toward SMR development, signaling a shared financial model to de-risk the project and a clear step toward commercialization.
• The broader adoption signal is that this is not a one-off project. Dominion is in discussions with other major technology companies, indicating a new business model is forming: developing dedicated, carbon-free nuclear power assets to serve the 24/7 energy needs of multiple hyperscale data center operators.

Investment Analysis: Dominion’s Capital Allocation for AI and Nuclear Infrastructure

Dominion’s financial strategy reflects a massive capital reallocation to fund the generation and transmission infrastructure required to support the AI sector’s growth, with SMRs positioned as a cornerstone long-term investment. The company’s strong quarterly performance, driven by data center demand, provides the financial foundation for this multi-billion-dollar buildout.

Table: Dominion Energy Select Financial and Investment Activities (2025)

Strategic Alliances: Dominion’s Ecosystem of SMR and Grid Support Partnerships

Dominion’s partnerships create a multi-layered ecosystem designed to both develop next-generation power sources like SMRs and simultaneously deploy AI to modernize the grid. This dual approach ensures it can meet near-term demand while building the carbon-free infrastructure required for the future.

Table: Dominion Energy Select Partnerships and Projects (2021–2025)

Virginia’s Energy Epicenter: How Dominion Concentrates SMR and AI Grid Development

Dominion Energy’s strategic activities are intensely focused on Virginia, leveraging the state’s position as the world’s largest data center market to justify and site next-generation nuclear and transmission projects.

• From 2021 to 2024, Dominion solidified its foundation in Virginia by connecting 94 data centers and advancing major renewable projects like the 2.6 GW Coastal Virginia Offshore Wind farm, primarily serving the established Northern Virginia data center alley.
• The strategy shifted in 2025 to concentrate on specific sites within Virginia for future growth. The formal proposal to deploy SMRs at the North Anna nuclear station in Louisa County directly connects a new nuclear generation source to the proximate data center load center.
• This generation buildout is supported by a massive transmission expansion within Virginia, including the proposed 36.5-mile Morrisville to Wishing Star transmission line, which is explicitly designed to serve the power-hungry data centers in the region.
• Dominion is also investing in the local Virginian workforce to support this concentration. Partnerships with Virginia Commonwealth University (VCU) and the Mark Cuban Foundation AI Bootcamp in Richmond aim to build a local talent pipeline for both the energy and tech sectors.

SMR Technology Status: From R&D Exploration to Commercial Project Planning

Dominion Energy has successfully advanced its SMR strategy from the exploratory phase to concrete commercial project planning, a progression validated by a significant co-investment commitment from a key technology partner.

• The 2021–2024 period was marked by the application of mature AI to existing operations, such as using Skydio drones for inspections, and exploring future concepts like fusion with CFS. SMRs were part of long-term plans but not yet an active, public-facing project.
• The October 2024 MOU with Amazon served as the primary catalyst, elevating SMRs from a theoretical option to a planned project with a defined anchor customer and a clear business case linked to AI data center demand.
• In 2025, the project moved toward commercialization. The formal proposal at North Anna and Amazon’s reported financial commitment shift the focus to front-end engineering, design, and regulatory engagement, which are critical pre-construction phases.
• Despite this progress, the technology remains pre-commercial on a utility scale. The next validation points for technological maturity are successfully navigating the Nuclear Regulatory Commission (NRC) licensing process and reaching a final investment decision.

SWOT Analysis: Dominion Energy’s SMR and AI Strategy

This analysis assesses the strategic position of Dominion Energy’s SMR initiative, highlighting how the AI boom has both amplified opportunities and intensified threats.

Table: Dominion Energy’s SMR Strategy SWOT Analysis (2021–2025)

Future Outlook: Dominion’s Next Steps in the AI and Nuclear Energy Race

Dominion Energy’s success over the next 18-24 months will be determined by its ability to secure regulatory approval for both its SMR project and the associated rate structures needed to fund it.

• The most critical milestone to monitor is the progress of the SMR project at North Anna. Watch for formal filings with the Nuclear Regulatory Commission (NRC) and a final investment decision with Amazon, as these will dictate the project’s viability and timeline.
• Regulatory rulings on Dominion’s proposal to create a separate rate class for data centers and pass on costs to other customer classes will be crucial. Approval is essential for financing the $50.1 billion capital plan.
• The company’s ability to gain approval for and construct key transmission lines, such as the Morrisville-to-Wishing-Star project, is a key operational dependency. Delays in transmission buildout could create a major bottleneck for connecting new data centers.
• The inherent conflict between meeting explosive AI demand with reliable power (which favors natural gas in the near term) and the VCEA’s 2045 carbon-free mandate will intensify. How Dominion addresses this in its next Integrated Resource Plan will define its long-term strategic path.

Frequently Asked Questions

Why did Dominion accelerate its plans for Small Modular Reactors (SMRs) in 2025?
The acceleration was driven directly by the massive power requirements of the artificial intelligence (AI) industry. The strategic turning point was an October 2024 agreement with Amazon to explore a 300 MW SMR project, which moved SMRs from a long-term concept to a tangible plan with a key anchor customer to power their data centers.

How is Dominion planning to pay for the SMRs and other infrastructure needed for the AI boom?
Dominion is funding its expansion through several channels. It announced an accelerated $50.1 billion five-year capital plan, is issuing senior notes with a strong ‘BBB+’ credit rating, and is using strong quarterly earnings boosted by data center demand. The company has also proposed creating a separate rate class for data centers to help finance the new infrastructure.

What specific steps has Dominion taken to make the SMR project a reality?
After signing an initial MOU with Amazon in late 2024, Dominion formally proposed deploying SMRs at its North Anna nuclear site in July 2025. This was followed by reports of Amazon committing $500 million toward the project, signaling a shared financial model to de-risk the development and move it toward the pre-construction engineering and design phases.

Besides SMRs, what other next-generation energy or grid technologies is Dominion involved with?
Dominion is exploring multiple advanced technologies. The company has a partnership with Commonwealth Fusion Systems (CFS) to collaborate on siting a commercial fusion power plant. It also invests in grid-modernization startups like DG Matrix (solid-state transformers for AI data centers) and Treeswift (AI for vegetation management) through its Innovation Center.

What are the biggest risks or challenges to Dominion’s SMR and AI strategy?
The primary threats are regulatory hurdles and public approval. Dominion must successfully navigate the Nuclear Regulatory Commission (NRC) licensing process for SMRs, gain approval for new transmission lines, and manage potential backlash from consumers over proposed rate hikes needed to fund the buildout. There is also an inherent conflict between meeting immediate AI power demand, which favors natural gas, and complying with the Virginia Clean Economy Act’s carbon-free mandate by 2045.