Big Tech Invests in Nuclear Fission Startups to Power Data Centers 24/7

The demand for electricity has surged in the U.S., primarily driven by the rapid expansion of artificial intelligence (AI) and the increasing number of data centers required to support it. This has led prominent tech giants like Amazon, Google, Meta, and Microsoft to explore nuclear fission as a viable and stable energy source. While the concept of nuclear fission has faced skepticism due to the complexity and risks associated with traditional large-scale reactors, new small modular reactor (SMR) designs are gaining traction, promising to address these issues with enhanced efficiency, safety, and cost-effectiveness. Kairos Power Google has shown significant interest in Kairos Power, committing to purchase about 500 megawatts of electricity by 2035, with the first reactor expected to come online by 2030. Kairos Power's reactors use molten fluoride salt as a coolant, which has a high boiling point, reducing the need for high-pressure systems and improving operational safety. The reactors also feature fuel pebbles coated in carbon and ceramic, designed to withstand meltdowns. Located in Alameda, California, the startup has received substantial support from the U.S. government, including a $629 million award, with $303 million from the Department of Energy. In November 2024, Kairos gained approval from the U.S. Nuclear Regulatory Commission to start constructing two test units in Tennessee, each producing 35 megawatts. These units will serve as prototypes for the company's larger, 75-megawatt commercial reactors. Oklo Backed by OpenAI CEO Sam Altman, Oklo is another SMR company capturing the attention of tech giants. In July 2023, Altman brought Oklo public through a reverse merger with his special purpose acquisition vehicle (SPAC), AltC, and served as the company's chairman until April 2024 when he stepped down to negotiate an energy supply agreement with OpenAI. Oklo's reactors are cooled by liquid metal, based on a design intended to minimize nuclear waste. Despite initial setbacks, with the first license application being denied in January 2022, Oklo remains committed to its goals. The company plans to resubmit the application in 2025 and has already secured a deal to supply 12 gigawatts of energy to data center operator Switch over 20 years, starting in 2044. Saltfoss Formerly known as Seaborg, Saltfoss aims to deploy SMRs cooled by molten salt on ships, termed "Power Barges." This innovative approach has attracted notable investors like Bill Gates, Peter Thiel, and Unity co-founder David Helgason, who collectively contributed to a $6 million seed round. The startup has also partnered with Samsung Heavy Industries for the construction of the ships and reactors. Saltfoss's unique mobile reactor design addresses the challenge of land-based limitations and offers a flexible solution for power generation, particularly beneficial for remote or coastal regions. TerraPower Founded by Bill Gates, TerraPower is building a larger-scale nuclear reactor called Natrium, which uses liquid sodium for cooling and incorporates molten salt energy storage. The company broke ground on its first power plant in Wyoming in June 2024, with the reactor designed to produce 345 megawatts of electricity. This capacity is smaller than traditional large reactors but larger than most SMR designs. A standout feature of the Natrium reactor is its ability to store excess heat in molten salt, allowing for efficient energy utilization during periods of low demand. TerraPower's investors include Gates' Cascade Investment fund, Khosla Ventures, CRV, and ArcelorMittal. X-Energy X-Energy, an SMR startup, secured a significant $700 million Series C-1 investment in 2024, led by Amazon's Climate Pledge Fund. The company announced development agreements to deploy 300 megawatts of new nuclear capacity in the Pacific Northwest and Virginia. X-Energy's high-temperature, gas-cooled reactors differ from other popular designs in the U.S. and Europe. Each Xe-100 reactor is expected to generate 80 megawatts of electricity using helium gas, which flows through approximately 200,000 billiard ball-sized fuel pebbles, absorbing heat to drive a steam turbine. Industry Insights and Company Profiles The resurgence of nuclear fission, particularly with the advent of SMR technology, has been met with cautious optimism within the tech and energy sectors. Industry experts highlight the critical role of these new reactors in providing consistent, reliable energy for data centers, which are essential for running computationally intensive AI applications. However, they also note the need for rigorous safety standards and ongoing regulatory approval to maintain public trust and ensure operational reliability. Kairos Power, Oklo, Saltfoss, TerraPower, and X-Energy represent the cutting edge of nuclear innovation, each bringing unique technological advancements and strategic partnerships to the table. These startups, backed by some of the biggest names in technology and finance, are poised to revolutionize the way energy is generated and distributed, potentially reshaping the future of data center operations and contributing significantly to national and global energy stability. Their focus on reducing environmental impact and enhancing safety aligns well with the sustainability goals of their tech investors, further cementing the alignment between innovation in technology and energy solutions.