Rolls-Royce is exploring the possibility of bringing Small Modular Reactors (SMRs) to India, as the country pushes to expand its nuclear power capacity and prepares for a sharp increase in electricity demand from artificial intelligence and data centres.
Speaking to CNBC-TV18, Sashi Mukundan, Executive Vice President for Transformation in India at Rolls-Royce, said the company is in discussions with the government to understand how it can participate in India’s evolving nuclear energy landscape following recent policy changes.
“The other thing which is exciting is the new civil nuclear programme. What we want to do is explore the possibility of bringing in Small Modular Reactors and whether we can do that in India to augment the energy requirement,” Mukundan said.
The development comes shortly after the passage of the SHANTI Act, which seeks to create a framework for greater private-sector participation and investment in India’s nuclear energy sector. The legislation forms part of a broader push by the government to significantly increase the role of nuclear power in India’s energy mix over the coming decades.
Prime Minister Narendra Modi has set an ambitious target of achieving 100 GW of nuclear power capacity by 2047, compared with around 8 GW currently. The government has also outlined plans to bring the first tranche of new nuclear capacity online by the early 2030s.
Mukundan said India presents a significant long-term opportunity for SMRs, which are designed to be smaller, more flexible and potentially faster to deploy than conventional nuclear reactors.
“We are the first ones to actually do the first SMR globally. The Indian government, with the SHANTI Bill, has opened things up. What we need to do now is understand the process and see how we can be part of it,” he said.
Rolls-Royce is currently developing SMR technology in the UK and indicated that any future India plans would likely involve a local partner. While discussions remain at an early stage, the company believes SMRs could eventually play a role in supporting India’s growing energy requirements.
The timing is significant as India’s data centre industry undergoes rapid expansion, driven by rising digital consumption, cloud computing and artificial intelligence workloads.
According to Mukundan, power consumption from data centres could rise dramatically over the next few years. He noted that India consumed around 13 terawatt-hours of data centre power in 2024, with estimates suggesting that figure could rise to 57 terawatt-hours by 2030.
Industry estimates suggest that every gigawatt of new data centre capacity can require roughly eight terawatt-hours of electricity annually. With multiple large-scale data centre projects announced across the country, ensuring reliable round-the-clock power is emerging as a key challenge.
“There is a huge need for energy,” Mukundan said. “With the growth in data centres and AI centres, we are looking at both backup power solutions and new energy sources.”
Unlike solar and wind power, nuclear energy provides continuous baseload electricity, making it particularly attractive for energy-intensive facilities such as data centres, industrial parks and advanced manufacturing clusters.
While Rolls-Royce acknowledged that commercial deployment of SMRs in India remains a longer-term opportunity, the company believes the country’s policy direction and growing energy needs make it an attractive market.
“I am a strong believer it will happen,” Mukundan said, referring to India’s nuclear expansion plans. “If we want to be part of it, we need to get there early.”
The SMR discussions are part of Rolls-Royce’s broader strategy to deepen its presence in India. The company is also pursuing opportunities in defence propulsion systems, aerospace manufacturing and power generation, while targeting more than $1 billion in sourcing from India over the next five years.