SMRs and Geothermal Threaten Fusion
Pacific Fusion
This matters because Pacific Fusion is not just racing other fusion companies, it is racing any technology that can put firm clean megawatts on a site before fusion is ready. Data center operators and defense buyers are shopping for power that stays on all day, can be built near load, and can support long term contracts. Advanced fission SMRs go after that exact buying decision without needing a physics breakthrough, which makes them the most direct non fusion substitute.
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SMR developers are already selling into these use cases in concrete ways. Oklo markets Aurora for data centers and remote military installations, Equinix signed for up to 500 MW from Oklo in 2024, and Google, Amazon, and other hyperscalers have signed nuclear deals tied to future reactor capacity.
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The product overlap is very literal. Aalo is pitching factory built 50 MW Aalo Pods for data centers and industrial sites, while Valar targets grid independent power for hydrogen, industrial loads, and data centers. In both cases the sale is not fuel, it is an on site power block with predictable output and a known deployment path.
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Other firm low carbon options are improving too. DOE highlights geothermal as a strong fit for constant data center loads, and a 2026 California demonstration estimated advanced geothermal at roughly $90 to $95 per MWh for a 100 MW project. That raises the bar for fusion on delivered cost, not just scientific elegance.
The next phase of competition will be won by whoever can secure sites, permits, and anchor customers first. If SMRs, geothermal, and gas backed clean power keep moving into data center and defense procurement now, fusion developers will increasingly need to sell not only better long run economics, but also a believable path to commercial timing and project delivery.