Small nuclear reactors could soon power the next generation of AI data centers — modular reactors could soon power Dow Texas chemical plant

X-energy has received approval from the Nuclear Regulatory Commission (NRC) to construct four small modular nuclear reactors at a Dow industrial facility in Texas. Each Xe-100 reactor is designed to generate 80 megawatts (MW) of electricity, along with 200 MW of thermal energy, bringing the total potential output to 320 MW. This approval marks the first construction authorization for an advanced nuclear installation at an American industrial location.

The reactors utilize uranium-bearing fuel pellets and helium gas to remove heat generated during the fission process. X-energy claims this design presents safety advantages over conventional nuclear power systems, though independent experts have expressed doubt about these assurances. Critics, including the Union of Concerned Scientists, argue that the regulatory process overlooked critical safety questions until after construction approval was granted.

Despite these concerns, technology companies are increasingly seeking nuclear energy as electricity demand grows with the expansion of computing infrastructure. Amazon, a major supporter of X-energy through its Climate Pledge Fund, invested $500 million in the startup's Series C-1 financing round and committed to purchasing 5 gigawatts of nuclear generating capacity. This potential customer makes X-energy's commercial reactors a significant goal for the company.

However, the startup still faces numerous challenges. While small modular reactors are expected to benefit from factory-based production and smaller installations, these advantages have not been conclusively proven. Furthermore, no small modular reactor currently operates commercially in the United States, so X-energy's proposed installation remains dependent on successful construction and regulatory oversight before it can supply electricity to data centers or other facilities.