Erginbilgic drew the distinction while discussing how different reactor technologies could address changing power requirements. He said Rolls-Royce’s 470-megawatt SMRs increasingly matched the scale of large data centers, while smaller AMRs could have a different set of applications.
The CEO made the comments during Rolls-Royce’s earnings call covering its first-half 2026 results. Asked about the potential relationship between the company’s power-generation and nuclear businesses, Erginbilgic said the group was already considering how its technologies could serve different markets.
“AMR is smaller,” Erginbilgic said. He added that the technology would be more focused on “space defence and industrial setup,” including potential use around industrial complexes.
Erginbilgic did not identify a defense customer, specific space program or contract associated with AMRs. He also gave no development timetable, investment requirement or forecast for potential revenue from defense applications.
His comments came as Rolls-Royce assesses how rapidly changing power demand could broaden the potential market for nuclear systems. Erginbilgic said data centers were now being developed with power requirements ranging from roughly 200 megawatts to 500 megawatts, creating potential applications for the company’s larger SMRs.
That shift had altered his earlier view that SMRs would primarily supply electricity to the grid. At the scale now required by some data centers, Erginbilgic said an SMR could provide continuous power, leaving smaller AMRs more oriented towards specialized markets such as space defense and industrial facilities.
Rolls-Royce is also increasingly aligning its nuclear and conventional power businesses around prospective customers. Erginbilgic said the company’s SMR and Power Systems teams already approach hyperscalers together, although he acknowledged that the SMR business still had further execution work ahead.
The CEO placed nuclear technology within a broader set of long-term growth themes for Rolls-Royce. He identified higher defense spending, digitalization, artificial intelligence and what he called a “nuclear renaissance” among the global trends shaping the company’s future opportunities.
