Power is in high demand in the digital economy, and data centers are at the forefront of this need. Data centers in the US consume approximately 4% of the country’s electricity, a percentage that is expected to increase significantly as cloud computing, digital storage, and artificial intelligence continue to grow. In light of this, it is noteworthy that Trump-backed Aalo Atomics (Aalo) has started building its Aalo-X experimental reactor adjacent to the Idaho National Laboratory (INL) as part of President Donald Trump’s U.S. Nuclear Reactor Pilot Program.

The project, which is being supported by the Department of Energy (DOE), is a daring move by Trump-backed Aalo Atomics to reduce emissions by utilizing small nuclear technology, intended to power energy-intensive sectors sustainably.

Source: Aalo

How Does the Nuclear Reactor Pilot Program Accelerate Innovation?

A key component of Trump-Backed Aalo Atomics is the U.S. Nuclear Reactor Pilot Program, which was started in June 2025 under Executive Order 14301. It is an example of a public-private collaboration approach designed to accelerate the development of advanced nuclear designs. The program enables businesses like Aalo to test and improve their technologies in settings that are close to commercial, in contrast to old approaches that limited innovation to government laboratories.

This change offers two main advantages:

• Speed: By shortening testing schedules, technology can now be released in years, rather than decades.
• Cooperation: Private companies and national laboratories can work together to create safety protocols and regulatory frameworks, which will facilitate future approvals.

Without waiting for traditional grid decarbonization, this innovation pipeline offers a way to obtain dependable, carbon-free power sources for sectors such as cloud computing and data storage, where power demands are increasing.

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Why Could Aalo-X Be a Game-Changer for Data Centres?

The Aalo-X reactor, an experimental extra modular reactor (XMR) with a criticality target of July 4, 2026, is at the center of Aalo’s strategy. The company’s commercial product, the Aalo Pod, a 50 MWe modular nuclear system comprising five Aalo-1 sodium-cooled reactors, will be validated at this testbed.

This is why data centers should care:

• Compact Footprint: Aalo Pods don’t require expansive locations or external water sources, unlike conventional nuclear facilities.
• Scalability: Depending on demand, their modular design enables capacity to increase from megawatts to gigawatts.
• Proximity Powering: By constructing pods onsite adjacent to data centers, grids that rely heavily on fossil fuels can be reduced.
• Reliability: Unlike renewable energy, nuclear power provides a consistent baseload supply, which is essential for enterprises that cannot afford downtime.

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What Makes Sodium-Cooled Reactors Different?

As sodium-cooled reactors, the Aalo-1 units utilize liquid sodium as a coolant, rather than water. This design has several benefits:

• Increased Efficiency: Sodium’s ability to function at lower pressures and hotter temperatures increases energy conversion.
• Water Independence: Reactors are suitable for desert areas or small spaces because they don’t require a substantial external water supply.
• Safety Improvements: Passive cooling is possible in emergencies due to sodium’s superior heat transfer qualities.

This approach is particularly appealing for data centers, which often operate in areas with limited water supplies.

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Can Trump-Backed Aalo Atomics Truly Reduce Data Centre Emissions?

Despite the criticism surrounding nuclear energy, Aalo’s plan immediately solves some of the most significant sustainability obstacles:

• Zero Carbon at the Point of Generation: Direct CO₂ emissions are not produced by nuclear power.
• On-site Energy Security: Data centers can avoid fossil fuel-heavy grids by using modular deployment.
• Integration with Renewables: In a hybrid clean energy paradigm, nuclear energy can act as a baseload partner for intermittent sources like solar and wind.

But there are still difficulties:

• Waste Management: Nuclear waste from even modest reactors needs to be stored for a long time.
• Cost: Although modular reactors have cheaper initial costs, scaling is necessary for them to be commercially viable.
• Public Perception: Local populations concerned about safety tend to oppose nuclear plants.

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Frequently Asked Questions (FAQs)

Q1. How is Trump-Backed Aalo Atomics different from other nuclear startups?

The timetable of Aalo, which aims to “found to fission” in less than three years, and its emphasis on directly powering data centers—a specialized but rapidly expanding energy consumer—make it unusual.

Q2. Will Aalo-X replace renewable energy sources, such as solar and wind?

No. By supplying consistent baseload electricity to offset the erratic nature of solar and wind, Aalo’s design aims to supplement renewable energy sources.

Q3. When will Aalo Pods be commercially available?

To meet the growing energy demands of data centers, the business plans to launch its commercial Aalo Pods by 2029, contingent upon the success of the Aalo-X project.

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