Failed nuclear project could help solve data center energy needs
AI data center growth is driving the revival of small nuclear reactor projects, particularly a dormant facility in Lynchburg, Virginia, owned by BWXT and partnered with Applied Atomics. This initiative aims to address the immense energy demands of data centers, despite ongoing challenges related to high costs, regulatory hurdles, and radioactive waste disposal. The first 195-megawatt reactor is projected to operate commercially in five years.
The surging demand from AI data centers is fueling a renewed interest in small nuclear reactor projects, including the revival of a long-dormant $400 million test facility in Lynchburg, Virginia. This facility, originally known as mPower and owned by BWXT, is now central to a partnership with the startup Applied Atomics, co-founded by former SpaceX engineers Ben Kellie and Paul Keutelian. They aim to leverage existing technology to build more nimble nuclear reactors, with plans for a 195-megawatt reactor to be operational within five years, capable of powering approximately 155,000 homes.
The project faces significant hurdles, including overcoming historical cost overruns that plagued previous nuclear initiatives, as highlighted by consultant David Schlissel. Regulatory challenges are also substantial, particularly for novel designs, potentially slowing deployment. Additionally, the issue of radioactive waste storage remains unresolved, as there is no national facility, requiring on-site storage or challenging permits for floating power plants being explored with Core Power. Despite skepticism within the industry, Applied Atomics believes its approach, focusing on efficient execution similar to SpaceX's model, can overcome these obstacles to meet the growing energy needs of the data center sector.