Nuclear construction commences near Idaho lab, marking the initiation of America's first modular reactor.
In the bustling tech hub of Austin, Texas, Aalo Atomics, a young yet ambitious company, is making waves in the energy sector. Founded in 2023, the startup has recently begun construction on the nation's first experimental extra modular nuclear reactor (XMR), named Aalo-X.
The Aalo-X reactor, being built next to the Idaho National Laboratory's Materials and Fuels Complex in Idaho Falls, Idaho, is the forerunner to the Aalo Pod, a 50-megawatt modular power plant designed specifically for data centers. Each Aalo Pod contains five Aalo-1 reactors, all factory-built, sodium-cooled, and fueled by low-enriched uranium dioxide.
The company's mission is to complete and operate Aalo-X and a data center at the Idaho National Laboratory by summer 2026. If successful, Aalo-X could be online less than three years after the company's founding, a remarkable feat in the world of nuclear energy.
Aalo Atomics' cofounder and CTO, Yasir Arafat, previously led the DOE's MARVEL reactor project. The company's vision aligns with the Department of Energy's goals, as Aalo was selected to participate in President Trump's Nuclear Reactor Pilot Program, announced in June 2025. This program aims to fast-track the testing and approval of next-generation nuclear designs outside of national labs, clearing a quicker path toward commercial deployment.
The program's focus on innovative designs like the Aalo-X reactor is particularly relevant to the fast-growing demand from artificial intelligence and data centers. The Aalo Pod, with its scalable and flexible design, has the potential to colocate directly at data center sites, providing a sustainable and efficient energy solution.
If Aalo meets its target, the Aalo-X reactor could produce electricity at around 3 cents per kWh, serving as a proof of concept for a modular nuclear plant and AI data centers. This would be a significant step forward in meeting the energy demands of the digital age while minimising carbon emissions.
Aalo Atomics has raised over $136 million from investors, demonstrating confidence in the company's innovative approach to nuclear energy. With construction underway, the countdown to the operational launch of Aalo-X has begun, marking an exciting new chapter in the world of nuclear energy and data center power solutions.
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