The Power Allocation

SMR electricity costs ~$182/MWh—3x solar, 4x gas. The economics don't work yet, but data centers may pay premiums others won't.

Show Notes

In this episode of The Power Allocation, we examine the economics of small modular reactors: current estimates put SMR electricity at around $182 per megawatt hour—roughly three times solar, four times natural gas. The economics don't work yet. But data centers may change that equation.

When your alternative is no power at all—or waiting five years for interconnection—$182/MWh starts looking reasonable.

Key topics covered:

  • Why first-of-a-kind reactor costs don't reflect mature technology economics
  • The troubled history of nuclear cost projections and the industry's credibility problem
  • How hyperscalers can tolerate premiums that other customers won't pay
  • Long-term contracts that average costs: $200/MWh year one, $80 by year fifteen
  • The coordination problem: everyone waiting for someone else to go first

About The Power Allocation: Brought to you by Spring Street Management Group, translating data center and energy hype into real infrastructure and assets on the daily.

Keywords: SMR cost, $182 per MWh, nuclear economics, first-of-a-kind reactor, data center power premium, nuclear cost projections, SMR scale economies, hyperscaler nuclear investment

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What is The Power Allocation?

The AI boom isn't constrained by chips, algorithms, or talent. It's constrained by electricity.

The Power Allocation is a daily briefing on AI infrastructure — where capital is actually being deployed. Each episode cuts through the hype to examine the physical realities shaping the AI buildout: power constraints, grid interconnection, land acquisition, data center financing, cooling infrastructure, and utility relationships.

This isn't a software podcast. This is an infrastructure podcast.

Who it's for: Institutional investors, infrastructure allocators, data center developers, utilities, family offices, and anyone positioning capital for the physical layer of artificial intelligence.

What you'll learn:

Why power availability — not GPU supply — is the binding constraint on AI compute
How hyperscalers are locking in multi-decade power purchase agreements
Where data centers are relocating and why grid geography is reshaping the industry
The financing structures turning compute facilities into bond-like assets
What execution timelines, permitting delays, and interconnection queues mean for capital deployment
Format: 3-6 minute episodes. Dense. Clear. No hype.

New episodes daily. Subscribe wherever you listen.