Aalo Atomics Secures $100M Funding for Microreactor & Data Center

Nuclear Startup Aalo Atomics Secures $100 Million in Series B Funding

Significant interest from large technology companies, known as hyperscalers, and substantial investment are currently being directed towards nuclear startups. Aalo Atomics is the most recent company to benefit from this growing trend, having just announced a $100 million Series B funding round.

First Reactor Planned for 2026

According to CEO Matt Loszak’s post on LinkedIn, the company intends to initiate operations at its inaugural reactor during the summer of 2026. This facility will be situated within the Idaho National Laboratory campus.

Origins and Technology

Aalo Atomics, distinct from a previously existing furniture company, can be viewed as a partial spin-off from a Department of Energy laboratory. This lab originally developed and made publicly available a small modular reactor design known as Marvel.

The company’s Chief Technology Officer, Yasir Arafat, formerly oversaw the design of Marvel, which Aalo states “inspired” its own prototype. Furthermore, Aalo received developmental assistance from the Idaho National Lab through a program initiated during the Obama administration to expedite the development of nuclear reactors.

Investors in the Series B Round

The Series B funding round was spearheaded by Valor Equity Partners, with contributions from a diverse group of investors including: 50Y, Alumni Ventures, Crescent Enterprises, Crosscut, Fine Structure Ventures, Gaingels, Harpoon Ventures, Hitachi Ventures, Kindred Ventures, MCJ, NRG Energy, Nucleation Capital, Perpetual VC, Tishman Speyer, and VamosVentures.

Challenging Industry Timelines

Should Aalo Atomics successfully meet its ambitious schedule, it will represent a departure from the typical pattern within the nuclear industry, which is often characterized by extended timelines and frequent delays.

Economies of Scale and Future Expansion

Like many companies focused on advanced nuclear technologies, Aalo is relying on achieving economies of scale to manage both costs and construction times. The company envisions constructing thousands of Aalo Pod power plants if its approach proves viable.

Each Aalo Pod will incorporate five Aalo-1 reactors, collectively providing heat to a single turbine for a total electricity generation capacity of 50 megawatts.

Data Center Prototype

The startup also plans to include an “experimental” data center adjacent to the Aalo-X prototype, a feature that appears to be more focused on marketing than groundbreaking technological advancement.

Cost Competitiveness

Aalo’s ultimate goal is to deliver electricity at a cost of 3 cents per kilowatt-hour. This price point would position it as competitive with contemporary natural gas power plants and solar farms.

However, the company has not yet specified a timeframe for achieving this pricing, a prudent decision considering past projections within the nuclear sector.

Recent Developments in the Nuclear Sector

Aalo Atomics is not the only nuclear startup garnering attention this week. Kairos recently announced an agreement with the Tennessee Valley Authority to supply 50 megawatts of generating capacity from its Hermes 2 power plant, planned for construction in Oak Ridge, Tennessee.

Google intends to utilize this power to operate its data centers.

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