NuScale surges 14% after historic TVA-ENTRA1 deal for 6-GW SMR rollout: What it means for investors

Shares of NuScale Power Corporation (NYSE: SMR) climbed sharply by 14.00% to $42.46 in midday trading on September 3, 2025, after the company confirmed its strategic partnership with ENTRA1 Energy in support of a record-setting 6-gigawatt small modular reactor (SMR) deployment program in collaboration with the Tennessee Valley Authority (TVA). The announcement marks the largest SMR rollout in U.S. history, positioning NuScale at the center of America’s most ambitious nuclear energy buildout to date.

The agreement between ENTRA1 Energy and TVA—formally unveiled just hours earlier—envisions the development of six ENTRA1 Energy Plants, each powered by multiple NuScale Power Modules, delivering carbon-free baseload energy across TVA’s seven-state footprint. The capacity is projected to be sufficient to power 4.5 million homes or roughly 60 hyperscale data centers, at a time when AI, advanced manufacturing, and semiconductor fabrication are driving unprecedented electricity demand.

Why is this the most consequential SMR announcement in U.S. nuclear energy history?

The magnitude of the deployment is staggering by SMR standards: 6 gigawatts of firm power from modular nuclear units represents a step change from isolated demonstration-scale efforts. Until now, most SMR programs in the U.S. have stalled at planning or pre-licensing stages. But this joint initiative—driven by the fully NRC-approved NuScale technology—could redefine how rapidly scalable, modular nuclear is deployed in response to emerging energy needs.

For NuScale, this marks the clearest commercial validation yet of its reactor platform. The company’s CEO, John Hopkins, emphasized ENTRA1’s “deep experience in energy sales, finance, and infrastructure development” as a critical enabler of commercial execution. Notably, NuScale remains the only U.S. SMR vendor with NRC approval, a regulatory advantage that competitors have yet to replicate.

How does the ENTRA1–TVA–NuScale partnership advance the U.S. energy dominance agenda?

The deal has been positioned not just as a commercial breakthrough, but as a geopolitical milestone. According to NuScale and ENTRA1, the collaboration aligns with President Donald Trump’s “energy dominance” vision, which prioritizes American energy independence, critical infrastructure development, and leadership in next-generation nuclear technology.

TVA’s President and CEO Don Moul described the utility’s leadership role as pivotal, calling the partnership “a model for public-private collaboration that can deliver long-term energy security and economic competitiveness.” ENTRA1 Chief Projects Officer Skip Alvarado went further, linking energy reliability directly to national security and economic innovation—particularly in the context of AI, semiconductors, and mission-critical industries.

With TVA’s status as a federally owned corporation and regional electricity planner, this project could serve as a federal model for SMR deployment in other parts of the country, especially in regions facing both rising demand and fossil fuel retirements.

What do investors need to know about ENTRA1 Energy’s role and financing model?

ENTRA1 Energy is emerging as a new but well-capitalized SMR developer, focused on owning, financing, and operating SMR-enabled plants. It plans to sell power to TVA via long-term power purchase agreements (PPAs), rather than rely on traditional rate-base recovery models. This approach enables flexibility in financing, de-risks capital investment from utilities, and opens the door to private equity and institutional infrastructure funds that have shown growing appetite for nuclear-linked assets.

By leveraging NuScale’s factory-fabricated, modular design, ENTRA1 can shorten project timelines and reduce construction risks—a historical challenge for gigawatt-scale nuclear. While site-specific permitting and interconnection logistics remain hurdles, this model removes one of the biggest pain points: upfront utility capital expenditure.

What are the near-term catalysts that could push NuScale’s stock beyond recent highs?

NuScale shares surged on the news, closing in on their 52-week high. Investors will now be watching several near-term catalysts.

First, site selection and permitting milestones will be critical. If TVA and ENTRA1 can fast-track early projects—particularly by repurposing existing nuclear sites or coal-to-nuclear conversions—the timeline to first electricity could accelerate.

Second, concrete PPA terms and capacity allocations will signal how much firm revenue NuScale can expect over the coming decade. While NuScale will sell equipment and technology licenses, recurring revenue visibility will depend on order book conversion.

Third, federal support mechanisms—including potential loan guarantees, production tax credits (PTCs), and advanced reactor incentives—could unlock additional market value for both NuScale and ENTRA1. Given the geopolitical framing of the deal, it’s plausible that U.S. DOE or Ex-Im Bank financing will follow.

What is the market sentiment after the announcement—and how are analysts responding?

Forum sentiment has been overwhelmingly bullish, with institutional coverage now expected to revise NuScale’s long-term earnings visibility upward. Analysts tracking the U.S. advanced nuclear sector had previously flagged the need for a marquee deployment contract to validate NuScale’s valuation, which had been under pressure earlier in the year.

With this deployment plan potentially spanning $20–30 billion in capital investment over a decade, NuScale’s licensing, IP, and modular design revenue streams are now being priced into forward multiples by market watchers.

The timing also aligns with macro tailwinds: U.S. utilities are scrambling to meet clean energy targets while balancing grid reliability. NuScale’s SMRs, offering load-following capability and black-start features, provide a compelling solution to grid planners under pressure from intermittent renewables and fossil retirements.

Could this partnership change the global outlook for SMRs and modular nuclear exports?

NuScale’s technology has already drawn international interest—from countries such as Romania, Poland, and Jordan—but this U.S. deployment could become the template for export financing and foreign adoption. ENTRA1 has previously signaled interest in creating an exportable model that packages SMRs with development, EPC, and financing support.

With increasing geopolitical tension around nuclear technology supply chains—especially from China and Russia—U.S.-based, NATO-aligned nuclear offerings are gaining favor. This project could mark the beginning of a Made-in-America SMR export push, with NuScale and ENTRA1 in the vanguard.

Bottom line for long-term retail investors: Is this NuScale’s inflection point?

NuScale has long pitched its modular reactors as the future of nuclear—but execution risk and capital intensity have kept investor enthusiasm cautious. This landmark deployment plan, however, changes the equation. It offers commercial proof of concept, builds on regulatory first-mover advantage, and aligns with both federal energy policy and private-sector capital.

If even half of the proposed 6 GW deployment materializes within a decade, NuScale could emerge as the anchor tenant of America’s advanced nuclear comeback—with ripple effects across the energy, AI, data center, and national security value chains.

For long-term retail investors tracking next-gen energy, SMRs, or critical infrastructure themes, the SMR–ENTRA1–TVA nexus is now the most consequential development of 2025.