The Province of Ontario plans to spend $20.9 billion ($15.1 billion U.S.) to build a total of four small modular nuclear reactors.
Ontario Power Generation has inked a deal with GE Vernova (GEV) to build four of the nuclear reactors in the province.
The first reactor will be located at the power company’s Darlington Nuclear Project site in Clarington, Ontario.
The initial unit is expected to cost $6.1 billion, and future costs for the additional three nuclear reactors are expected to decline as GE Vernova gains expertise in building them.
While still a nascent industry, interest in nuclear power is rising around the world as technology companies and governments look to clean power to meet future electricity demand.
The technology industry, in particular, is considering small modular nuclear reactors to help power their artificial intelligence (A.I.) data centres.
In signing the agreement with GE Vernova, Canada became the first Group of Seven (G7) nation to move forward with the development of small modular nuclear reactors.
The small modular reactors, or SMRs as they are known. are expected to be produced in factories and then assembled onsite, a strategy that is expected to keep costs down.
The Government of Ontario says it is moving forward with the nuclear reactors because, by 2050, its power needs are forecast to rise 75%.
The stock of GE Vernova has risen 137% over the past year as surging demand for power, driven by data centres and new factories, has driven its financial results higher.
GE Vernova shares currently trade at $394 U.S. each.
