Rolls-Royce confirms £600m contract to build UK SMRs

Rolls-Royce SMR have officially signed a contract with Great British Energy – Nuclear (GBE-N) to immediately start work on delivering the three Rolls-Royce small modular reactors (SMRs) that were announced last year.

The SMRs will be located at Wylfa on the coast of Ynys Môn (Anglesey) in North Wales, with a firm contract now in place to allow Rolls-Royce SMR to develop site-specific design and order critical components from the supply chain.

“This contract unlocks the delivery of our first three units at Wylfa and is a tangible example of the Government’s ‘golden age’ of new nuclear being delivered successfully with British technology,” said Chris Cholerton, chief executive at Rolls-Royce SMR. “This brings certainty to the UK SMR programme and differentiates our business as the only SMR company with multiple commitments in Europe – an initial three units at Wylfa and up to six units in Czechia.”

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As part of this deal, £599 million is available to support finalisation of the Rolls-Royce SMR design.

The agreement offers certainty to ramp up its recruitment programme to complete this work and successfully deliver the initial three units. Rolls-Royce SMR has said that, along with its supply chain partners, will create 3,000 jobs local to the Wylfa site and an additional 5,000 jobs nationally.

Cholerton added: “We are transforming the way nuclear projects are delivered, to give greater cost and schedule certainty with a standardised, factory-built approach. This project is important to the UK’s energy security and will power up our business and the UK supply chain.”

This confirmation comes after the UK government pledged to fuel the country’s economic growth by investing in technology and digital transformation efforts. The Labour government is supporting nuclear energy in particular, hoping it can generate cleaner electricity without carbon dioxide emissions – which led to the Autumn Budget in November 2025 confirming two AI Growth Zones would be delivered in Wales, with Rolls-Royce building the first SMRs.

The data centre industry has looked to nuclear in recent years, with technology giants already investing in nuclear power to expand their operations sustainably. Rolls-Royce plans to use nuclear-powered SMRs to meet AI energy needs, estimating that its SMR programme could contribute up to US$73bn to the UK economy between 2025 and 2105, with 90% of manufacturing and assembly taking place in UK factories.

“This investment, along with vital financing from the National Wealth Fund, will strengthen our energy security, create skilled jobs and help to build a new generation of homegrown nuclear technology that will power our economy for decades to come,” said UK Chancellor of the Exchequer, Rachel Reeves MP. “We have the right economic plan – one where growth and clean energy go hand in hand – and one that will benefit everyone across the country.”

Secretary of State for Energy Security and Net Zero, Ed Miliband MP, said: “At a time of global instability, this is a major milestone for Britain’s energy security. We are backing a British company to deliver our first small modular reactors – creating a generation of good jobs, driving growth and providing clean, homegrown power for decades to come.”

He added: “Our clean energy mission is the only route to getting off the rollercoaster of fossil fuels and take back control of our energy independence.”

Delivering sustainable progress

Rolls-Royce’s mission is to transform the way nuclear projects are delivered using nuclear technology, modularisation and a factory-built approach, the company said. This is to reduce delays and minimise impact on local people and the environment.

Each Rolls-Royce SMR power plant is expected to generate enough stable, low-carbon electricity to power a million homes for more than 60 years.

Already across Europe, heat reuse projects are underway in Norway – with a Green Mountain data centre supplying heat to a trout farm in Rjukan – and in Denmark, where atNorth is working with Wa3rm to recycle excess heat to power greenhouses. Perhaps projects like these could set an example for the way homes are powered across the UK.

“This agreement is a landmark moment for the nuclear industry. Working with Rolls-Royce SMR, we’re bringing a significant long-term investment to the UK industrial supply chain,” said Simon Roddy, CEO of Great British Energy.

“Supporting skills, innovation and growing our industrial capability is essential to this partnership and will ensure the UK is well placed to deliver the next generation of nuclear infrastructure.”

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