Aalo Atomics, an advanced nuclear firm based in Austin, Texas, has secured significant capital and regulatory backing to complete construction of its 10-MWe Aalo-X reactor at Idaho National Laboratory (INL). The project, selected under the Department of Energy’s (DOE) new Nuclear Reactor Pilot Program, aims to demonstrate cold criticality by July 2026, a notably aggressive timeline for advanced nuclear deployment.
The company announced $100 million in Series B funding on August 19, led by Valor Equity Partners, with participation from a consortium of investors including Fine Structure Ventures, Hitachi Ventures, NRG, and others. This brings Aalo’s total capital to over $136 million, including a $6 million seed round in 2023 and a $30 million Series A in 2024. This financial backing positions Aalo to finish construction of its first reactor next summer, according to CEO and co-founder Matt Loszak.
“This could be the first advanced nuclear power plant to turn on in the U.S. in decades,” Loszak told POWER. “This is not just a test reactor, but rather a full plant that will produce electricity.”
Loszak also revealed plans to site an experimental data center alongside the Aalo-X project at INL, potentially establishing a first-of-its-kind demonstration of nuclear power directly fueling artificial intelligence (AI). While Loszak declined to name potential partners, he indicated that Aalo is in “quite a few conversations with the relevant partners” to establish the experimental facility. “The Aalo-X—the X stands for experimental—could actually be the world’s first co-located and co-built nuclear-planted data center,” he said. “In the past, there’s been maybe data centers installed near existing nuclear plants, but this would be the first time it’s been built hand in hand, and there are some cool efficiencies that come from that.”
The Aalo-X reactor is part of Aalo’s broader strategy to develop modular nuclear systems tailored for data centers. In April, the company unveiled its flagship Aalo Pod, a 50-MWe extra modular reactor (XMR) designed to provide fast, reliable, and scalable on-site power for modern data centers. Each Aalo Pod comprises five Aalo-1 reactors, which are fully modular and can be deployed in configurations ranging from single 10 MW units to gigawatt-scale facilities. The reactors are designed to “snap together like Legos” using standardized electrical and fluid interfaces, according to Loszak.
Aalo has also prioritized speed-to-market over exotic fuel performance. Initially designed around uranium-zirconium hydride (UZrHx) fuel, the company announced in June 2025 a shift to uranium dioxide (UO₂) fuel at 8% enrichment (LEU+), citing supply chain maturity and availability as critical factors. The Aalo-X at INL will use standard, off-the-shelf 5%–enriched UO2. “I think very soon after, we’ll move up to 7% or 8%, and one day, we might switch to HALEU 20%—but only if the cost is right,” Loszak said.
The company’s selection under the DOE’s Reactor Pilot Program allows it to operate the Aalo-X on DOE land near INL, with the target of achieving zero-power criticality within less than a year. This fast-track pathway exempts qualified reactors from NRC licensing requirements, setting an unusually aggressive federal milestone for deployment.
Aalo’s progress could significantly influence the advanced nuclear sector. The company’s focus on modular, factory-fabricated reactors tailored for data centers aligns with the growing demand for secure, scalable electricity supplies in the digital economy. If successful, Aalo’s approach could accelerate the deployment of advanced nuclear technologies, demonstrating their viability in commercial applications.
Moreover, the integration of nuclear power with data centers could set a precedent for other industries seeking reliable, low-carbon energy solutions. The experimental data center at INL could serve as a model for future co-located nuclear and data center projects, highlighting the efficiencies and benefits of such partnerships.
Aalo’s journey from concept to construction underscores the potential for advanced nuclear technologies to play a pivotal role in the energy transition. As the company moves toward achieving criticality in 2026, its progress will be closely watched by industry stakeholders, policymakers, and investors alike. The success of the Aalo-X reactor and its experimental data center could pave the way for a new era of nuclear innovation, shaping the future of energy and technology.