Nuclear startups target AI power needs with compact reactor designs

Two nuclear energy startups are pursuing distinct strategies to modernize reactor technology and meet rising electricity demands, particularly from AI data centers.

Applied Atomics, founded by former SpaceX engineers, has secured a licensing agreement with BWXT to revive the mPower small modular reactor (SMR) design. The project, which previously received approximately $400 million in investment before being shelved in 2017, aims to utilize existing test facilities in Virginia to accelerate deployment. The mPower reactor is a Generation III+ light-water design capable of generating 195 megawatts of electricity.

Separately, Apollo Atomics, an MIT spin-off, has raised up to $31 million in seed funding to develop a compact pressurized water reactor. Rather than inventing new fuel cycles, the company focuses on redesigning the steam generator to be mass-manufactured and significantly smaller. Apollo claims its compact system could result in a reactor footprint 40 times smaller than conventional designs, potentially allowing components to be transported by truck and reducing deployment timelines to under two years.