Can Aalo Atomics Power Data Centres with Nuclear Energy?
Aalo Atomics begins construction of its experimental Aalo-X reactor next to Idaho National Laboratory’s (INL) Materials and Fuels Complex, marking the first reactor build under the US Department of Energy’s Nuclear Reactor Pilot Program.
The move represents an early test of modular nuclear energy as a power source for energy-intensive data centres, which increasingly demand constant, scalable and carbon-light electricity.
Aalo Atomics, based in the US, targets reactor criticality, the point when a nuclear chain reaction becomes self-sustaining, by 4 July 2026.
The project enters development following Aalo’s selection by the Department of Energy (DOE) through a competitive process.
The Aalo-X is designed as an extra modular reactor (XMR), a format that prioritises compact, scalable, non-water cooled nuclear units.
Public-private programme aims to accelerate nuclear rollout
The DOE launches the Nuclear Reactor Pilot Program in June 2025 through Executive Order 14301.
The initiative opens the door for reactor developers to build and test advanced designs beyond the boundaries of traditional national laboratories.
The intention is to streamline testing regulations, support innovation and meet new forms of energy demand, including from hyperscale data centre operators, which face growing pressure to reduce emissions and reliance on fossil energy.
“Our selection for the Nuclear Reactor Pilot Program is a significant catalyst for achieving our goal of going from ‘founding to fission’ in less than three years, a feat many deemed impossible just a year ago,” says Matt Loszak, Co-founder and CEO of Aalo Atomics.
“This milestone groundbreaking event is a testament to the potential that can be unlocked when public entities and private companies partner together in the critical interest of the nation.
"This is a pivotal time for the US nuclear energy industry and we are incredibly proud to be at the forefront.”
The experimental reactor site at INL acts as a proving ground for features that energy-intensive sectors increasingly require, including scalable deployment, steady supply and low operational impact.
For data centres, these factors are essential in regions with grid constraints or environmental concerns around power sourcing.
“Today’s groundbreaking symbolises the progress that can be achieved when innovation, vision and national purpose come together,” says John Wagner, Laboratory Director at INL.
“At Idaho National Laboratory, we are proud to support the Department of Energy’s efforts to accelerate advanced nuclear technologies that strengthen America’s energy security, provide reliable power, and inspire the next generation of innovators.
“Projects like Aalo-X reflect the promise of nuclear energy to meet our nation’s historic demand growth and help enable a more prosperous future for our nation.”
Modular nuclear design tailored for data centres
The Aalo-X reactor serves as a prototype for Aalo’s planned commercial unit, the Aalo Pod.
Aalo Pods are modular 50 megawatt electric (MWe) XMR power plants built around five Aalo-1 sodium-cooled reactors.
These reactors use low-enriched uranium dioxide fuel, selected for its availability and established safety characteristics.
Unlike legacy nuclear facilities, Aalo Pods do not require external water sources.
This makes them well suited to locations where access to cooling infrastructure is limited.
The company says its compact design reduces permitting and siting complexity, allowing operators to scale from megawatts to gigawatts without traditional grid dependencies.
Each unit is intended for direct onsite deployment at or near data centre facilities.
This approach targets power-hungry sectors that need round-the-clock energy with minimal land and environmental footprint.
Aalo manufactures the Aalo-X reactor at its 40,000-square-foot pilot facility in Austin, Texas.
Once complete, the unit will be transported to Idaho for installation and commissioning.
Data gathered during testing is expected to inform future deployment of Aalo Pods, which the company plans to bring to market by 2029.
“When Aalo-X achieves criticality next year, it will become the first new sodium-cooled reactor to start operation in the US in over four decades," comments Yasir Arafat, Co-founder and CTO at Aalo Atomics, who previously led the MARVEL microreactor project at INL.
"Aalo-X is just the beginning as we are poised to deploy nuclear power on a scale that far exceeds the first atomic age.”
Small-scale nuclear targets high-growth digital energy demand
With data centre expansion continuing in both urban and remote locations, energy sourcing becomes a central operational challenge.
Renewable generation, while growing, often struggles to provide consistent baseload power, a requirement for hyperscale facilities operating 24/7.
Modular nuclear units such as the Aalo-X aim to fill this gap by delivering carbon-free, high-capacity power directly where it's needed.
The US pilot programme provides companies like Aalo with regulatory and physical infrastructure to validate new formats that align with shifting national energy goals.
If successful, Aalo’s strategy could support not just grid independence for data centres but also wider adoption of small modular nuclear reactors across industrial and commercial sectors.
The company says its timeline from development to fission sets a new benchmark for private-sector nuclear innovation in the United States.
