Dominion Energy’s SMR Pivot in 2025: Powering the AI Boom with Advanced Nuclear

Industry Adoption: How Dominion Energy is Leading the Utility Shift to SMRs

Dominion Energy’s strategy for small modular reactors (SMRs) has rapidly evolved from long-range planning to concrete commercial action, marking a significant inflection point for SMR adoption in the U.S. utility sector. Between 2021 and 2024, the company’s approach was characterized by foundational work and strategic positioning. It participated in early feasibility studies, such as the one for Southwest Virginia in 2023, and invested in R&D with developers like GE Hitachi. The strategy was to leverage its existing nuclear expertise, reinforced by modernizing its large-scale plants like Surry Power Station. The turning point occurred in the second half of 2024. In July, Dominion issued a formal Request for Proposals (RFP) for an SMR at its North Anna site, shifting from exploration to a commercial selection process. This was immediately followed by a landmark Memorandum of Understanding (MOU) with Amazon in October 2024 to co-develop an SMR, directly tying a next-generation energy source to a guaranteed, high-volume customer. This move from a supply-driven to a demand-led model, where the energy user co-invests, signaled a new commercial pathway for nuclear energy.

The period from 2025 to today has been defined by execution and expansion. Dominion is now operationalizing its strategy by navigating the financial and regulatory frameworks necessary for deployment. In March 2025, the company filed for “Rider SMR,” a specific rate adjustment to recover $17.2 million in initial development costs, demonstrating a clear path to socialize early-stage risk. The commercial application for SMRs has also broadened. While the Amazon partnership targets the immense power needs of data centers, Dominion expanded its potential customer base by signing a Memorandum of Agreement with the U.S. Navy in June 2025 to explore an SMR at Naval Weapons Station Yorktown. This variety of offtakers—spanning commercial tech giants to critical government infrastructure—demonstrates that SMRs are being positioned not just as a grid-scale clean energy solution, but as a versatile, site-specific power source for dedicated, high-reliability customers. This shift from a single utility-led project to a portfolio of customer-centric developments is a powerful indicator of the technology’s maturing value proposition and a potential new model for the industry.

Table: Dominion Energy’s SMR Investment Timeline and Strategy

Table: Dominion Energy’s Key SMR Partnerships

Geography: Dominion Energy’s Expanding SMR Footprint

Dominion’s SMR activities have been geographically concentrated but are strategically expanding. Between 2021 and 2024, the focus was almost exclusively on Virginia. This was logical, as the state is home to the massive data center alley in Loudoun County, which is the primary driver of the unprecedented electricity demand. Key sites included the North Anna Power Station in Louisa County, which was designated as the prime location for the first SMR and the subject of the July 2024 RFP and the Amazon partnership. The utility also participated in a feasibility study for the LENOWISCO district in Southwest Virginia, indicating an early interest in leveraging retired fossil fuel plant sites. The geographic strategy was to co-locate new nuclear on existing, licensed nuclear sites to streamline development.

Since the beginning of 2025, the geographic strategy has both deepened in Virginia and expanded to a second state. In Virginia, the addition of Naval Weapons Station Yorktown as a potential SMR site (June 2025) diversifies the in-state portfolio from a commercial to a military application. More significantly, Dominion is replicating its playbook in South Carolina. The March 2025 Integrated Resource Plan for the state explicitly includes a new SMR project, with the V.C. Summer site as the likely location. This signals a deliberate strategy to use existing nuclear-licensed real estate as hubs for SMR deployment across its service territories. This geographic expansion validates the SMR model as a replicable, rather than a one-off, solution to regional power deficits, with Virginia as the proving ground and South Carolina as the first follower.

Technology Maturity: Dominion Energy’s Path from Evaluation to Pre-Development

Between 2021 and 2024, Dominion’s engagement with SMR technology was in an evaluation and partner selection phase. The technology was pre-commercial from the utility’s perspective, with activities centered on research, feasibility studies (LENOWISCO), and R&D investments in specific designs like GE Hitachi’s BWRX-300. The primary goal was to understand the landscape and identify viable options. The pivotal validation point was the issuance of a formal RFP in July 2024 for the North Anna project. This moved SMRs from a line item in long-term strategic plans to an active procurement effort, signaling a commitment to make a concrete technology choice.

From 2025 onward, Dominion has advanced into a pre-development and financial de-risking phase. While the technology remains pre-construction, the focus has sharpened from broad evaluation to tangible, project-specific actions. The filing for “Rider SMR” in March 2025 to fund pre-licensing activities is a clear signal of this transition. It provides capital for the detailed engineering and regulatory work required before a final investment decision. The company’s ongoing evaluation of over 80 SMR designs, with an expected vendor selection in 2025, marks the final step of this phase. Choosing a technology partner will lock in a specific reactor design (e.g., a Gen III+ light-water reactor or a Gen IV advanced design), moving it from “under consideration” to “selected for deployment.” This shift from a wide-ranging paper evaluation to securing funding and selecting a specific vendor is a critical step toward making SMRs a commercial reality by the mid-2030s target.

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

Forward-Looking Insights: What’s Next for Dominion’s SMR Ambitions?

The data from 2025 signals that Dominion Energy is accelerating its SMR strategy from planning to execution, and the year ahead will be defined by critical, tangible milestones. The single most important event to watch is the selection of an SMR technology vendor for the North Anna project in 2025. This decision will be a watershed moment, locking in a specific reactor design and triggering the start of the formal, multi-year licensing process with the U.S. Nuclear Regulatory Commission (NRC). This will move the project from a feasibility study to a licensed, engineered reality.

Market actors should also closely monitor Dominion’s regulatory filings. Further cost-recovery petitions under “Rider SMR” will indicate the pace of spending and progress on pre-development work. The success of the Amazon partnership at North Anna will serve as the master template; expect announcements of similar MOUs with other technology companies to gain traction if the initial model proves viable. Conversely, any delays in the vendor selection or initial NRC engagements would signal potential roadblocks. The core focus is shifting from “if” to “how,” and the next 12-18 months will reveal whether Dominion’s ambitious mid-2030s timeline is achievable and if its pioneering, customer-led financing model can truly unlock the next generation of nuclear energy.

Frequently Asked Questions

What is the main reason for Dominion Energy’s sudden pivot to SMRs?
The primary driver is the massive, unprecedented electricity demand from the AI boom and data centers. This created an urgent need for a reliable, carbon-free power source, shifting Dominion’s strategy from long-term planning to a demand-led model, as exemplified by its partnership with Amazon.

Where does Dominion plan to build its first SMRs?
Dominion’s primary focus for its first SMR is the North Anna Power Station in Virginia. The company is also exploring deploying an SMR at Naval Weapons Station Yorktown in Virginia and is considering its V.C. Summer site in South Carolina for future SMR projects.

What is the “Rider SMR” and why is it significant?
“Rider SMR” is a rate adjustment petition filed by Dominion to recover approximately $17.2 million in initial SMR development costs from customers. It is significant because it provides a clear financial pathway to fund early-stage pre-licensing and feasibility studies, helping to de-risk the project financially before a final investment decision is made.

Who are Dominion’s key partners in its SMR strategy?
Dominion’s key partners include Amazon, with whom it signed a memorandum to co-develop a 300 MW SMR to power data centers, and the U.S. Navy, to explore an SMR for energy security at Naval Weapons Station Yorktown. The company has also invested in technology developers like GE Hitachi.

What is the expected timeline for Dominion’s first SMR to become operational?
Based on the analysis, Dominion is targeting the mid-2030s for its first SMR to be deployed and become a commercial reality. The next major step is the selection of a technology vendor in 2025, which will trigger the formal, multi-year licensing process with the NRC.