Aalo Atomics Secures $100M to Develop Microreactor-Powered Data Center
▼ Summary
– Aalo Atomics raised $100 million in a Series B funding round to advance its small modular nuclear reactor technology.
– The startup plans to activate its first reactor in summer 2026 at the Idaho National Laboratory campus.
– Aalo’s technology is inspired by the Marvel reactor design from the Department of Energy, with support from the Idaho National Lab.
– The company aims to build thousands of power plants using five-reactor pods to generate 50 megawatts each, targeting electricity at 3 cents per kilowatt-hour.
– Aalo faces industry skepticism about meeting its aggressive timeline, given nuclear power’s history of delays.
Aalo Atomics has secured $100 million in a Series B funding round to advance its microreactor technology, positioning itself at the intersection of nuclear energy and data center infrastructure. The investment, led by Valor Equity Partners, signals growing confidence in small modular reactors as a viable power source for energy-intensive computing operations. With plans to activate its first reactor by summer 2026 at the Idaho National Laboratory campus, the company aims to demonstrate the commercial potential of compact nuclear systems.
The startup’s origins trace back to the Department of Energy’s Marvel reactor project, an open-source small modular reactor design. Aalo’s Chief Technology Officer, Yasir Arafat, previously led the Marvel initiative, and the company has leveraged that foundational work to develop its own prototype. Additional development support came through a federal program initiated during the Obama administration, further cementing its ties to national laboratory research.
Aalo intends to scale production aggressively, envisioning thousands of modular power plants known as Aalo Pods. Each pod would incorporate five Aalo-1 reactors channeling heat to a single turbine, generating up to 50 megawatts of electricity. The company claims this approach will drastically reduce both construction timelines and operational expenses, though the nuclear sector is notorious for project delays and budget overruns.
In a notable move, Aalo plans to construct an experimental data center adjacent to its prototype reactor. While some observers view this as a strategic marketing effort rather than a technical breakthrough, it underscores the company’s focus on attracting tech industry interest. If successful, Aalo promises to deliver electricity at three cents per kilowatt-hour, a rate competitive with contemporary natural gas and solar installations.
The broader advanced nuclear sector is gaining momentum. Earlier this week, Kairos Power announced an agreement with the Tennessee Valley Authority to supply 50 megawatts from its Hermes 2 plant, with Google slated to use the output for its data centers. Such partnerships reflect a shifting energy landscape where carbon-free, reliable power is increasingly prioritized by major tech firms.
Aalo’s ambitious timeline and modular strategy represent a significant departure from traditional nuclear development. Whether it can deliver on its promises remains to be seen, but its recent funding success indicates that investors are willing to bet on nuclear innovation.
(Source: TechCrunch)