Trump's tax law enables Bill Gates' aspirations for a nuclear data center to persist
In the realm of clean energy, TerraPower, a nuclear startup backed by Microsoft co-founder Bill Gates for nearly two decades, is making significant strides in the development of sodium-cooled small modular nuclear reactors (SMRs).
The company's first Natrium SMR is currently under construction near a retiring coal plant in Kemmerer, Wyoming, and is scheduled to be operational by 2030. This reactor, unique for its molten sodium cooling system, will generate 345 megawatts of electricity and boasts the ability to store energy by heating sodium, providing power even when demand fluctuates. This design offers steady reactor operation with flexibility in power output, making it an ideal fit for variable demand scenarios such as data centers.
TerraPower's progress is reflected in its positive regulatory environment, with the U.S. Nuclear Regulatory Commission actively planning pre-application interactions for the Natrium design. The company has also secured significant funding, with NVIDIA’s venture arm and Bill Gates investing $650 million. This backing underscores strong investor confidence and interest from hyperscalers and data center developers seeking clean, reliable, and carbon-free power.
Data center giants like Amazon, Google, and Microsoft have shown commitment to increasing nuclear power use. Amazon is planning a $20 million data center next to a reactor, while Microsoft is working to restart a nuclear plant in Pennsylvania. This growing alignment between TerraPower's SMRs and the needs of the data center market is promising, as operators seek 24/7 reliable and carbon-free power.
TerraPower is not only focusing on the Natrium reactor. Terra Innovatum, an affiliate, is developing the Solo micro-modular reactor, designed for rapid deployment and regulatory streamlining using commercial off-the-shelf components. Collaborations with companies like Paragon Energy Solutions aim to facilitate its commercialization by 2028, further expanding TerraPower’s offerings for modular, scalable nuclear solutions potentially suitable for distributed applications including data centers.
Despite some challenges, such as the lack of a tested reactor design and the need for certified components, TerraPower remains optimistic. Bill Gates predicts that the AI industry will "fill up" TerraPower’s order book for the first 10 to 20 units.
The nuclear energy sector has faced its fair share of setbacks, with most programs that would benefit regular Americans, like wind, solar, and EV tax credits, being scrapped in the recent budget bill. However, nuclear incentives have survived, keeping nuclear, one of the few remaining zero-carbon sources, in play under the Trump administration.
As TerraPower moves forward, it is worth noting that Cipher News, a news outlet that has reported on the company's progress, is set to cease publication on Wednesday after nearly four years of operation. Breakthrough Energy, a clean-tech venture network co-founded by Bill Gates, helped bankroll Cipher News at launch.
In conclusion, TerraPower's current status is that it is on schedule to deploy its first commercial SMR by 2030 with substantial financial backing, regulatory progress, and industry partnerships. Its Natrium reactor’s unique flexible operation is well-suited to provide reliable, carbon-free power, aligning with data center operators’ energy needs, making TerraPower a promising provider in this growing market segment.
- TerraPower's NATRIUM reactor, equipped with a molten sodium cooling system and capable of storing energy, is ideal for power-intensive industries such as AI and finance, particularly data centers that require stable, carbon-free energy for their 24/7 operations.
- The AI industry, with its insatiable demand for computational power, might significantly contribute to TerraPower's sales, as predicted by Bill Gates who anticipates AI filling up TerraPower’s order book for the first 10 to 20 units.
- In the realm of business technology, TerraPower's unique small modular nuclear reactors (SMRs) offer opportunities for various sectors, including data centers, renewable energy storage, and distributed applications, as the company continues to develop scalable and modular solutions through partnerships with companies like Paragon Energy Solutions.
