Top news sources reported that India and France will collaborate on building Small Modular Reactors (SMRs) and Advanced Modular Reactors for civilian use.
Indian Foreign Secretary Vikram Misri said that both countries will design, develop, and produce these reactors together. He noted that modular reactor technology is still in its early stages. Significantly, international cooperation will help address challenges in large-scale nuclear projects.
This partnership signals a major shift in India’s nuclear policy. The government used to enforce strict rules. Now, it is opening the sector to global partnerships and private investment.
Furthermore, Prime Minister Narendra Modi will be discussing potential nuclear investments by U.S. firms in his recent Washington visit.
India’s Nuclear Push for Energy Security and a Greener Future
- According to the Government of India, the country’s nuclear power capacity is projected to increase from 8,180 MW to 22,480 MW by 2031-32, with ten reactors under construction.
India is taking strong steps to enhance energy security and reduce carbon emissions. As per Reuters, Finance Minister Nirmala Sitharaman set a goal of 100 GW of nuclear power by 2047. The government has allocated over $2 billion for nuclear research and development. It also plans to construct five homegrown reactors by 2033.
NTPC, India’s largest state-run power producer, is boosting its nuclear goals. The company initially aimed for 10 GW of capacity but now targets 30 GW in the next twenty years. This expansion will cost about $62 billion. It fits with the government’s push for private and foreign investment in nuclear energy.
India’s Nuclear Share Trend
Overcoming Challenges
NTPC is actively working to secure land for its nuclear projects. Land acquisition is still a big hurdle. Public resistance has slowed India’s atomic energy growth in the past.
To speed up progress, NTPC has teamed up with the Nuclear Power Corporation of India (NPCIL). They plan to build two 2.6 GW nuclear plants—one in Madhya Pradesh and another in Rajasthan. The company is exploring 27 potential sites across eight states. These include Gujarat, Uttar Pradesh, Madhya Pradesh, Andhra Pradesh, and Tamil Nadu.
These locations could support at least 50 GW of nuclear power. However, addressing local concerns and getting regulatory approvals will be key for these projects.
Private Sector and Global Interest in India’s Nuclear Market
India has relaxed rules on nuclear investments. Reuters further revealed that this change has drawn major companies like Tata Power, Vedanta, Reliance Industries, and Adani Power. NTPC has launched a new subsidiary called NTPC Parmanu Urja Nigam. This move aims to strengthen its nuclear initiatives. This subsidiary will look for investment opportunities and partnerships.
NTPC is talking with international firms from Russia and the United States. They are exploring small modular reactors. These new reactors could help India diversify its clean energy sources and reduce its reliance on coal.
Nuclear power is becoming a key part of the country’s plan for low-carbon energy and this shift supports its sustainability goals.
France Uses Nuclear Power to Fuel AI Growth
On January 30, 2025, EDF released its new nuclear power generation estimates for France. These projections cover the next three years.
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2025 & 2026: EDF previously estimated nuclear output between 335-365 TWh per year. Now, the range has increased to 350-370 TWh annually.
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2027: The estimated nuclear generation remains at 350-370 TWh for the year.
India is focusing on nuclear energy for sustainability. Meanwhile, France is using its nuclear surplus to boost AI advancements.
AI computing needs a lot of electricity. Major tech firms are investing billions in large, power-hungry data centers. Most of these chips, mainly from Nvidia, power AI systems. They handle complex calculations that are essential for AI models.
S&P Global reported that President Emmanuel Macron pledged one gigawatt of nuclear power. This will support an AI computing project that aims to build one of the largest AI hubs in the world.
Tech firm FluidStack, will lead the project. It will connect 250 MW of nuclear power to AI computing chips by the end of 2026. Once finished, the facility may support 500,000 Nvidia AI chips by 2028. It could expand to 10 GW by 2030.
This project may cost billions of dollars. The company still needs to secure enough funding and AI chips to succeed. Brookfield Asset Management is investing 20 billion euros in AI infrastructure in France. Also, the UAE is teaming up with France to create an AI campus that runs on nuclear energy.
Source: IAEA
The Future of Nuclear-Powered AI and Energy Security
AI computing demand is soaring. By 2030, top AI models may need more than 5 GW of electricity. France’s choice to use nuclear power for AI development may boost its edge. This move helps keep France a leader in low-carbon energy.
For India, nuclear power is becoming a cornerstone of its clean energy transition. Nuclear energy is key to reaching the 500 GW goal for non-fossil fuel by 2030. It will help cut carbon emissions and provide a stable power supply.
India and France are deepening their nuclear cooperation. Both nations are now leaders in global energy and AI innovation. This shift boosts energy security and speeds up the move to cleaner, sustainable technologies.
Nuclear Investment Trends: The Case for SMRs
Notably, global investment in nuclear energy is set to rise. Right now, it’s about $65 billion each year. Nuclear capacity is expected to grow by over 50% to nearly 650 GW by 2050.
With stronger government actions, the investment could go even higher. In the Announced Pledges Scenario (APS), energy and climate policies could raise investment to $120 billion by 2030. Also, nuclear capacity would more than double by mid-century.
In the Net Zero Emissions by 2050 scenario, investment might top $150 billion by 2030. Capacity could exceed 1,000 GW by 2050.
Large reactors lead the way in investment. However, small modular reactors (SMRs) are growing fast. With better policy support and simpler regulations, SMR capacity could reach 120 GW by mid-century. This would need more than 1,000 SMRs and investment up to $25 billion by 2030 and $670 billion by 2050.
SMRs and large-scale reactors can help Europe, the US, and Japan regain their leadership in nuclear technology.
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