Oklo, X-Energy join Trump plan for 2 nuclear reactors powering AI

The Trump administration has enlisted nuclear developers Oklo and X-Energy to build reactors dedicated to powering AI data centers, giving the two companies government backing that could accelerate advanced nuclear deployment in the US.

The initiative, reported July 22, taps two of the most prominent US advanced nuclear developers for a plan addressing the surging electricity demands of artificial intelligence infrastructure. Government backing provides regulatory clarity and funding certainty for reactor projects, according to the announcement. Specific reactor capacity, investment amounts, and construction timelines have not yet been disclosed.

Oklo, a developer of advanced fast fission reactors that went public via a SPAC merger, and X-Energy, which builds high-temperature gas-cooled reactors backed by Ares Management, were selected as part of the broader push. Both companies' designs represent a departure from conventional light-water reactors, offering passive safety features and shorter construction timelines. Oklo's reactor uses metallic fuel and can operate on recycled nuclear waste, while X-Energy's Xe-100 uses TRISO fuel particles designed to withstand extreme temperatures without melting.

The announcement reinforces nuclear energy's emergence as a key solution for AI's growing power consumption, a theme that has lifted the entire nuclear energy sector. US electricity demand is projected to grow at its fastest pace in decades, driven largely by data center buildout, creating a multi-billion-dollar market for new generation capacity. The Electric Power Research Institute has estimated that data centers could consume as much as 9% of US electricity by 2030, up from about 4% today.

Nuclear's AI Power Play

The partnership addresses a structural problem facing the AI industry: data centers require massive, reliable electricity that intermittent renewables such as solar and wind cannot consistently supply. Nuclear reactors, particularly small modular reactors (SMRs) — factory-built units typically under 300 megawatts — offer a solution that combines carbon-free operation with high capacity factors exceeding 90%. This reliability makes nuclear power an attractive complement to natural gas, which currently provides much of the US grid's baseload flexibility.

For investors, the administration's endorsement reduces two of the biggest risks facing advanced nuclear developers: regulatory uncertainty and project financing. The broader nuclear sector, including companies such as Nuscale Power, Vistra, and Talen Energy, could benefit as the AI-nuclear narrative gains credibility. Constellation Energy, which operates the largest US nuclear fleet, has also seen increased investor interest as data center operators seek power purchase agreements with existing nuclear plants.

However, timelines remain a key risk. No advanced SMR has achieved commercial operation in the US, and previous projects have faced delays and cost overruns. The Nuclear Regulatory Commission has not yet licensed any advanced non-light-water reactor design for construction, though it has engaged in pre-application reviews with multiple developers. Oklo's first reactor and X-Energy's Xe-100 both depend on regulatory approvals and fuel supply arrangements for HALEU (high-assay low-enriched uranium, enriched to 19.75%, compared with 3% to 5% for conventional reactor fuel). The US Department of Energy has been working to establish a domestic HALEU supply chain, but production remains limited.

The policy push comes as the Trump administration has made AI infrastructure a priority, with the White House issuing executive orders to streamline permitting for energy projects serving data centers. The nuclear initiative represents the most concrete step yet in that effort, pairing the government's AI ambitions with a specific technology pathway.

This article is for informational purposes only and does not constitute investment advice.