Underground nuclear reactor planned in Parsons, Kansas, to power AI data centers sparks local opposition and safety concerns

Underground nuclear reactor planned in Parsons, Kansas, to power AI data centers sparks local opposition and safety concerns

News ClipThe Kansas City Defender·Parsons, Labette County, KS·9/10/2026

A California company, Deep Fission, is drilling the first underground nuclear reactor in Parsons, Kansas, to power AI data centers. This project, sited near a residential area and through drinking water, raises significant environmental and safety concerns due to rewritten safety regulations and a lack of oversight. Local residents, led by groups like the Prairie Dog Alliance, are actively opposing the project and a federal lawsuit has been filed challenging regulatory authority.

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Gov: Department of Energy, Nuclear Regulatory Commission, Kansas Geological Survey, Kansas Oil and Gas Commission, Kansas Health Department, Parsons City Commission, Labette County

Deep Fission, a California startup, is developing the first underground nuclear reactor near Parsons, Kansas, intended to power artificial intelligence data centers. Local resident Joe Beachner, whose home is less than two miles from the site at a former Army ammunition plant, expresses profound anger, stating his town is being turned into an "experiment." The project involves drilling through the region's drinking water and coal seams known for methane production, raising severe safety and environmental concerns among residents.

The controversial initiative is proceeding after critical safety rules were reportedly rewritten in Washington last year, and the environmental review process for such facilities was eliminated. This regulatory overhaul, including the softening of radiation exposure requirements and a categorical exclusion for environmental review, is being challenged by twelve attorneys general who argue the Department of Energy lacks authority over commercial power generation. Deep Fission, along with co-plaintiff Valar Atomics, is also engaged in a federal lawsuit seeking to limit the Nuclear Regulatory Commission's oversight of small reactors.

Experts like Allison Macfarlane, a former NRC chair, and Frank von Hippel, a nuclear safety expert, have voiced strong concerns, calling the design "outlandish" and questioning the lack of independent oversight following the dismantling of review bodies. They highlight the impossibility of repairing the reactor underground and the risks associated with refueling it by raising it through the borehole. The economic viability is also questioned, as independent analyses show new nuclear power to be significantly more expensive than renewables, and Deep Fission itself has warned federal regulators of potential financial difficulties.

Local opposition is spearheaded by Marjorie Reynolds, founder of the Prairie Dog Alliance, who, along with other residents, is actively fighting the project. They criticize the lack of local benefits, pointing to minimal job creation and long-term tax abatements for AI companies. The article suggests data centers are increasingly seeking unregulated power sources in areas perceived as too poor or small to resist, emphasizing that the outcome of this battle in Labette County could have far-reaching implications.