Data4’s Nuclear Pivot: SMR Strategy for AI Data Centers in 2025

Industry Adoption: How Data4’s Nuclear Strategy Signals a Market Shift

The data center industry’s approach to power procurement has undergone a seismic shift, and European operator Data4 is at the epicenter. Between 2021 and 2024, the company’s strategy was one of preparation and strategic positioning. Following its acquisition by Brookfield Infrastructure in 2023, Data4 embarked on a multi-billion-euro pan-European expansion, announcing massive new campuses in Germany, Italy, and Spain. During this period, its engagement with nuclear power was solidified through a foundational 12-year nuclear power contract with EDF in France, establishing a preference for reliable, low-carbon baseload energy. While competitors like Google and Amazon began exploring Small Modular Reactors (SMRs), Data4’s public stance was limited to identifying SMRs as a key “trend for 2025,” signaling interest but no concrete action.

The year 2025 marked a dramatic inflection point, transforming strategy into execution. The abstract trend became a tangible plan with the March 2025 signing of a Memorandum of Understanding (MoU) with Westinghouse to evaluate the deployment of a 300 MWe AP300 SMR at a future European campus. This move from a passive consumer of grid power to a potential pioneer of on-site nuclear generation is a direct response to the exponential energy demands of AI. Backed by a staggering €20 billion investment plan from Brookfield for French AI infrastructure, Data4 is now pursuing a two-pronged nuclear strategy: securing large-scale, long-term power from existing nuclear fleets like EDF’s, while simultaneously pioneering the integration of next-generation SMRs to create energy-autonomous data center campuses. This dual approach de-risks its ambitious growth, providing power certainty today while building a competitive advantage for a power-constrained future. The shift reveals a clear pattern: as AI workloads intensify, securing firm, carbon-free power is no longer an operational detail but the central pillar of competitive strategy, with nuclear energy emerging as the most viable solution for 24/7 reliability.

Table: Data4’s Strategic Investments in a Nuclear-Powered Future

Table: Key Partnerships Driving Data4’s Nuclear Ambitions

Geography: Data4’s European Nuclear Power Play

Between 2021 and 2024, Data4’s geographic strategy was one of broad, capital-fueled expansion. The company announced over €2.5 billion in new campus developments in Germany (Hanau), Italy (Milan), Spain (Madrid), and Greece (Athens). While this established a wide pan-European footprint, its nuclear energy engagement was geographically concentrated in France, its home market, through the long-term PPA with EDF. This created a strategic imbalance: a rapidly growing, power-hungry portfolio across Europe, but a direct nuclear power procurement model limited to one pro-nuclear country.

From 2025 onward, the geographic strategy evolved to align its power ambitions with its physical expansion. The massive €20 billion Brookfield investment in France cemented the country as the central hub for its AI and nuclear strategy. More importantly, the MoU with Westinghouse to evaluate an AP300 SMR is for a “future European data center campus,” deliberately leaving the location open. This signals a strategic intent to export its nuclear power model beyond France. The leading candidates for such a project would be its new, large-scale campuses in countries like Germany or Italy, where securing gigawatt-hours of clean, stable power is a major challenge. The geographic risk is no longer just about market entry, but about navigating disparate national energy policies and nuclear regulatory regimes. Data4’s success will depend on its ability to pioneer SMR deployment in a new European market, turning its pan-European presence into a strategic advantage rather than a power-procurement liability.

Technology Maturity: From Nuclear PPAs to SMR Deployment for Data4

In the 2021–2024 period, Data4’s application of nuclear technology was commercially mature but strategically conventional. By signing a PPA with EDF, it utilized a well-established procurement model to buy power from large-scale, operational nuclear reactors—a fully commercialized, low-risk technology. During this time, SMRs were merely a topic of strategic discussion, identified in a late 2024 report as an “emerging strategy.” The technology was on Data4’s radar but remained firmly in the pre-commercial, conceptual phase from its perspective, with no active engagement or evaluation.

The year 2025 triggered a significant leap in technological engagement and maturity. While the EDF nuclear PPA moved towards its 2026 operational start, representing the scaling of a mature commercial solution, Data4 simultaneously advanced into the pilot and evaluation phase for next-generation technology. The MoU with Westinghouse to assess the AP300 SMR marks a critical validation point. The AP300 is not a speculative design; it is based on the fully licensed and operational AP1000 reactor, significantly de-risking its path to commercialization. This move signals a shift from simply consuming nuclear power to actively co-developing its application for a specific industrial use case. By pursuing this dual-track strategy, Data4 is scaling with proven technology today (PPAs) while positioning itself to be among the first to commercialize a next-generation technology (SMRs) for data centers tomorrow, indicating a sophisticated, multi-horizon approach to its energy challenges.

Table: SWOT Analysis: Data4’s Evolving Nuclear Energy Strategy

Forward-Looking Insights and Summary

The events of 2025 signal that Data4’s nuclear strategy has moved from a defensive necessity to an offensive, value-creating pillar of its business. The year ahead will be defined by the transition from ambition to tangible progress. The most critical signal to watch will be the outcome of the joint feasibility study with Westinghouse. An announcement of a specific site selection for the pilot AP300 SMR—potentially at one of its new, large-scale campuses in Germany or Italy—would be a landmark event, indicating that the project is advancing from evaluation to the pre-licensing phase.

Market actors should also monitor Data4’s efforts to replicate its EDF PPA in other European markets. A second long-term nuclear PPA outside of France would demonstrate that its model for securing stable, carbon-free power is scalable across different regulatory environments. Conversely, a lack of progress on both the SMR front and new PPAs would signal that the strategy is facing significant headwinds. The capital deployment from new investors Arjun Infrastructure Partners and Interogo Holding will be a leading indicator of project acceleration. Ultimately, Data4 has placed a multi-billion-euro bet that it can solve the data center industry’s existential power crisis with a dual nuclear strategy. Its progress in the next 12-18 months will determine if it becomes the European benchmark for powering the AI revolution or a case study in the challenges of deploying next-generation energy infrastructure.

Understanding how leaders like Data4 are navigating the complex intersection of digital infrastructure and clean energy is crucial for competitive intelligence and strategic planning. To conduct your own deep-dive analysis on companies and technologies shaping the energy transition, explore a dedicated research platform.

Frequently Asked Questions

What is Data4’s two-pronged nuclear strategy?
Data4’s strategy involves both securing large-scale, long-term power from existing nuclear fleets, as shown by its 12-year contract with EDF in France, and pioneering the use of next-generation Small Modular Reactors (SMRs) on-site, demonstrated by its MoU with Westinghouse. This dual approach provides power certainty today while aiming for energy autonomy in the future.

Why is Data4 pursuing nuclear power for its data centers?
Data4 is turning to nuclear power as a direct response to the exponential energy demands of AI. The company sees firm, carbon-free nuclear energy as the most viable solution to guarantee the 24/7 reliability that AI workloads require, making it a central pillar of its competitive strategy rather than just an operational detail.

What specific step did Data4 take to advance its SMR ambitions in 2025?
In March 2025, Data4 signed a Memorandum of Understanding (MoU) with Westinghouse Electric Company. This agreement launched a joint evaluation to deploy Westinghouse’s 300 MWe AP300 SMR at a future European data center campus, moving the SMR plan from a conceptual trend to a tangible project.

Who is providing the financial backing for Data4’s massive expansion and nuclear strategy?
The primary financial driver is Data4’s parent company, Brookfield Asset Management, which announced a €20 billion investment plan for France’s AI infrastructure. This is supplemented by other major funding, including a €3.3 billion debt package and capital raised from selling a minority stake to Arjun Infrastructure Partners and Interogo Holding.

How did Data4’s strategy evolve from the 2021-2024 period to 2025?
Between 2021 and 2024, Data4 was in a preparation phase, securing a conventional nuclear power purchase agreement (PPA) with EDF and expanding its European footprint. The year 2025 marked a shift to execution, where the abstract idea of SMRs became a concrete plan with the Westinghouse MoU, signaling a move from being a passive power consumer to a pioneer of on-site nuclear generation.