Rolls-Royce Eyes Top Spot in UK Market with Nuclear-Powered AI Push
Rolls-Royce chief executive Tufan Erginbilgic says the company’s nuclear technology could propel it to become the most valuable business in Britain, overtaking giants such as Shell and AstraZeneca.
The engineering group has signed agreements to supply small modular reactors (SMRs) to the UK and Czech Republic, with the aim of powering AI-driven data centres – a sector facing mounting pressure over its vast energy demands.
Erginbilgic, who has overseen a tenfold rise in the company’s share price since taking the helm in January 2023, told the BBC that Rolls-Royce’s nuclear expertise is unmatched in the private sector. “If we are not the global market leader, we have done something wrong,” he said.
SMRs, smaller and faster to build than conventional nuclear plants, are seen by the firm as a trillion-dollar opportunity by mid-century. Rolls-Royce has committed to building six reactors in the Czech Republic and three in the UK, though none are yet operational. Tech giants including Google, Microsoft and Meta have already signalled interest in sourcing SMR energy in the future.
While nuclear is central to the company’s growth strategy, its biggest revenue stream remains aircraft engines. Already dominant in the market for wide-body jets, Rolls-Royce is now targeting the lucrative narrow-body segment, worth an estimated $1.6tn. Erginbilgic described it as “the single biggest opportunity for the UK’s economic growth” in industrial strategy.
The turnaround under his leadership has been dramatic. Just over two years ago, the company was weighed down by debt, struggling with thin margins, and shedding jobs. Today, it expects annual profits above £3bn, debt has fallen sharply, and its FTSE 100 ranking has climbed to fifth place.
Erginbilgic credits the rebound to a mix of leadership, favourable market conditions, and groundwork laid by predecessor Warren East. While unions have criticised some job cuts, overall headcount has risen since 2023, and industry observers acknowledge the transformation.
With global defence spending rising and demand for more sustainable power sources accelerating, Rolls-Royce believes it is well-positioned to capitalise. “We have created growth potential in both existing and new markets,” Erginbilgic said. “Yes – we can reach the top.”
