The Future of AI Nuclear Reactors Powering Data Centres
Aalo Atomics (Aalo) is breaking new ground with the Aalo-X experimental reactor near Idaho National Laboratory (INL), establishing itself as the first enterprise to commence construction under the Nuclear Reactor Pilot Programme spearheaded by US President Donald Trump.
This initiative is pivotal in pushing the boundaries of nuclear technology to support the surging energy requirements of data centres through AI-enhanced modular nuclear energy.
The Aalo-X is an innovative extra modular reactor (XMR) located adjacent to INL’s Materials and Fuels Complex.
Aalo executives aim for the reactor to reach criticality by 4 July 2026, marking a point where the nuclear reaction will become self-sustaining.
The company’s involvement in the programme emerged through selection by the US Department of Energy (DOE) following a rigorous competitive application process.
This highlights the collaboration between the public sector and private companies in advancing the nuclear energy market.
The impact of federal support and AI innovations
Initiated by the DOE in June 2025, following Executive Order 14301, the Nuclear Reactor Pilot Programme transforms reactor testing protocols.
It authorises advanced AI-driven nuclear designs to be examined in diverse settings beyond traditional laboratories.
This broadens the horizon for the commercial licensing and deployment of nuclear reactors, particularly to meet the escalating energy needs of data centres.
Matt Loszak, Co-founder and CEO of Aalo Atomics, regards the selection as an indicator of harmony between public and private interests: “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,” he says.
This means that AI plays a key role in achieving these objectives by optimising reactor operations and enhancing safety measures.
INL’s pilot site serves as a testing ground for technologies aiming to improve energy scalability, reliability and deployment speed.
These aspects are increasingly vital as data centres demand secure, non-intermittent power sources with minimal environmental footprints.
John Wagner, Laboratory Director at INL, notes the symbolic importance of the groundbreaking: “Today’s groundbreaking symbolises the progress that can be achieved when innovation, vision and national purpose come together.”
AI’s role in scaling nuclear power
To accommodate data centre growth, the Aalo-X reactor serves as a precursor to Aalo’s commercial solution: the Aalo Pod.
Engineered specifically for data centres, the Aalo Pod is a 50 MWe XMR power plant comprising five Aalo-1 sodium-cooled reactors.
These reactors utilise low-enriched uranium dioxide fuel chosen for its safety and availability. The AI integration within these systems aids in fine-tuning reactor outputs and safety protocols.
Unlike traditional nuclear plants, the Aalo Pod eliminates the need for an external water source, enabling direct onsite deployment.
Its compact and modular design allows operators to scale from megawatts to gigawatts efficiently and with fewer regulatory hurdles.
AI applications streamline the manufacturing process at Aalo’s pilot facility in Austin, Texas, eventually enabling the assembly and commissioning of the reactor at INL.
Yasir Arafat, Co-founder and CTO at Aalo Atomics says: “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.
“Aalo-X is just the beginning as we are poised to deploy nuclear power on a scale that far exceeds the first atomic age.”
This keen focus on AI and nuclear synergy aims to meet America’s future energy demands while mitigating environmental impacts.
