Dominion Energy’s 2025 SMR Pivot: Powering Data Centers with Next-Gen Nuclear

Industry Adoption: How Data Center Demand is Forcing Dominion Energy’s Hand in SMR Development

Between 2021 and 2024, Dominion Energy’s relationship with small modular reactors (SMRs) was largely one of strategic exploration. The utility was grappling with a well-defined but rapidly escalating problem: the explosive growth of data centers in its Northern Virginia territory. This period was characterized by reactive measures. Dominion was connecting approximately 15 new data centers annually, but its proposed solutions revolved around conventional grid modernization, renewable procurements, and critically, proposals for new natural gas generation to ensure reliability. SMRs were acknowledged as a potential long-term, carbon-free solution, but they remained a theoretical component of future Integrated Resource Plans (IRPs). The pivotal moment of this era was the October 2024 Memorandum of Understanding (MOU) with Amazon, which signaled a shift by formally linking SMR development to a specific hyperscale customer. Still, it was an exploratory agreement, marking the end of the purely theoretical phase.

The period from January 2025 to the present represents a dramatic inflection point where SMR adoption has transitioned from exploration to a core tenet of Dominion’s commercial strategy. The data center demand problem has morphed into an unprecedented surge, with contracted capacity in the pipeline soaring from roughly 33 GW at the end of 2024 to 47 GW by October 2025. In response, the SMR strategy has been validated and scaled. A June 2025 report revealed a formal collaboration with Amazon to develop a massive 5 GW of nuclear energy, a monumental escalation from the initial MOU. Furthermore, Dominion confirmed in late 2024 it was in similar SMR discussions with other large data center customers. This variety of engagement—from a foundational MOU to a multi-gigawatt development plan and talks with multiple tech giants—shows that SMRs are no longer just a utility-led initiative. They are becoming a co-developed, customer-driven solution, establishing a new business model where the primary energy consumers become direct partners in creating their own carbon-free baseload power source. This shift creates a new opportunity to de-risk and accelerate the deployment of next-generation nuclear, directly financed by the industry that needs it most.

Table: Dominion Energy’s Strategic SMR and Grid Investments

Table: Key SMR and Data Center Partnerships Forged by Dominion Energy

Geography: Why Northern Virginia is the Epicenter for Dominion’s SMR Strategy

Between 2021 and 2024, the geographic focus of Dominion’s data center challenge was intensely concentrated in Northern Virginia, specifically “Data Center Alley” in Loudoun County. This is where the utility accelerated transmission projects to manage the world’s most concentrated and fastest-growing data center load. A key geographic signal during this period was the 2023 plan for 30 data centers in Surry County, adjacent to the Surry Nuclear Power Station. This move was a prescient indicator of the emerging strategy to co-locate massive power demand with existing, large-scale nuclear generation assets, setting a geographic precedent for a more integrated energy and data infrastructure.

From 2025 onward, the geography has not broadened but rather deepened and become more specific. The SMR strategy is now geographically anchored. The October 2024 MOU with Amazon explicitly named Dominion’s North Anna Power Station site in Louisa County, Virginia, as the target location for SMR development. This transforms North Anna from simply a legacy nuclear site into the designated ground zero for the company’s next-generation nuclear ambitions. This geographic focus is further reinforced by the November 2025 news of acquisition talks with the Northern Virginia Electric Cooperative (NOVEC). A successful deal would consolidate Dominion’s territorial control over the very heartland of data center growth, allowing it to more effectively plan and deploy large-scale power solutions like SMRs across a unified service area. The geographic narrative has shifted from reacting to load pockets in Loudoun to proactively designating a central Virginia site for SMR development to serve the entire region.

Technology Maturity: Dominion Energy’s Shift from SMR Exploration to Co-Development

In the 2021–2024 timeframe, SMRs existed for Dominion Energy in the *planning and exploration* phase. The technology was a recurring topic in long-range IRPs and a theoretical solution to the twin challenges of decarbonization and data center load. The technology’s maturity, from the utility’s commercial perspective, was pre-developmental. The signing of the October 2024 MOU with Amazon marked a crucial, albeit preliminary, step forward. It moved SMRs from the abstract planning stage into a formal *feasibility and pre-development* phase, backed by a major commercial partner. However, it remained an “exploration” of a potential pathway, not a committed project.

The period from 2025 to today has seen a significant leap in the commercial maturity of Dominion’s SMR strategy, pushing it firmly into the *co-development* phase. The most powerful validation point is the June 2025 report of a collaboration with Amazon to develop 5 GW of nuclear energy. This moves beyond the exploratory language of the original MOU to a specific, large-scale capacity target. This signifies a commitment from a major technology user to not just purchase power but to actively partner in the development of the generation asset itself. By having a partner like Amazon help cover development costs, Dominion has materially de-risked the SMR pathway, providing a powerful market signal that the technology is advancing toward commercial viability. This transition from a utility-led exploration to a customer-integrated co-development model is the most significant indicator of SMRs’ maturing role in the energy transition.

Table: SWOT Analysis of Dominion Energy’s SMR Strategy for Data Centers

2025 Forward Look: What to Expect from Dominion Energy’s SMR Initiatives

The data from 2025 signals a clear acceleration of Dominion Energy’s pivot to SMRs as a cornerstone of its future generation strategy. The progression from an exploratory MOU with Amazon to a 5 GW co-development plan in under a year indicates that this is no longer a distant ambition but an active, high-priority initiative. Looking ahead, market actors should watch for the transition from agreements to action. The most critical signal will be a formal joint regulatory filing by Dominion and Amazon with the Nuclear Regulatory Commission (NRC) for a Construction and Operating License for the North Anna site. This would mark the official start of the multi-year SMR deployment process and provide concrete details on technology choice, financing, and timelines.

Simultaneously, the SMR co-development model is gaining traction. Dominion’s confirmation of talks with other tech giants suggests the Amazon partnership is a template, not a one-off. Expect further announcements of similar MOUs or development agreements with other hyperscalers. However, the path is not without friction. The near-term battle will be fought over bridge power. The regulatory decision on Dominion’s proposed gas plants will be a bellwether for how state officials balance immediate reliability needs against long-term clean energy goals. A rejection would intensify pressure on Dominion to find non-fossil alternatives, potentially creating near-term power shortages for data centers, while an approval would draw fire from environmental groups. The SMR strategy is the long-term prize, but navigating the contentious five-to-ten-year gap before it can come online will define Dominion’s success.

Frequently Asked Questions

Why has Dominion Energy suddenly pivoted to small modular reactors (SMRs) in 2025?
The pivot is a direct response to an unprecedented surge in power demand from data centers in Northern Virginia, with contracted capacity soaring from 33 GW to 47 GW in less than a year. SMRs provide a carbon-free, baseload power source capable of meeting this massive, 24/7 demand, which conventional grid upgrades and renewables alone cannot reliably satisfy.

What is Amazon’s role in Dominion’s SMR strategy?
Amazon has become a foundational partner, not just a customer. Their relationship evolved from an exploratory MOU in late 2024 to a June 2025 collaboration to co-develop a massive 5 GW of nuclear energy. By agreeing to help fund the development, Amazon is helping de-risk the high upfront costs of SMRs and creating a new customer-driven business model for deploying next-generation nuclear.

Are SMRs the only new power source Dominion is building to meet data center demand?
No, SMRs are the long-term solution. To address the immediate reliability gap, Dominion is also pursuing a massive $50.1 billion capital plan for grid modernization and, controversially, has proposed a new 1,000 MW natural gas plant as a ‘bridge fuel’. This highlights the company’s near-term challenge of keeping the lights on for data centers while a long-term, carbon-free solution like SMRs is being developed.

Where does Dominion plan to build these new SMRs?
The primary location designated for SMR development is Dominion’s existing North Anna Power Station site in Louisa County, Virginia. This site was explicitly named in the company’s agreement with Amazon, transforming it from a legacy nuclear plant into the designated ground zero for the company’s next-generation nuclear ambitions.

What is the biggest challenge facing Dominion’s SMR plan?
The biggest challenge is the time gap. SMRs have long regulatory and construction timelines (5-10 years), but the data center power demand is immediate. This creates a ‘reliability gap’ that forces Dominion to propose controversial solutions like new natural gas plants, putting it in direct conflict with Virginia’s 2045 carbon-free mandate. Navigating this near-term tension between reliability and decarbonization is the primary hurdle.