27-05-2025
Nuclear Energy Sees Renewed Momentum From Startups And Industry
Next-generation nuclear is part of clean energy technologies being driven by industry and startup ... More innovation.
In 2022, McKinsey's Global Energy Perspective found that global power consumption could triple by 2050. Nuclear power, a zero-carbon electricity source, contributes about 10 percent of global electricity generation. As a dispatchable energy source, nuclear power can be generated at any time and can also complement wind and solar power sources to make a total power supply that meets grid demand.
A March Gallup poll found that 61% of Americans favor using nuclear energy to generate electricity, up from two years ago and just one point below the 2010 record high. Support includes 29% who "strongly favor" and 32% who "somewhat favor" nuclear energy.
Earl Simpkins, Partner, Energy and Industrials Strategy Leader, Strategy& (part of the PwC Network), said one of the most significant shifts he's seeing right now is the sheer pace of load growth.
"AI and data centers are ramping up electricity demand in ways we haven't seen in decades," said Simpkins. "At the same time, there's been a massive buildout of clean energy: in 2024, 96% of new U.S. capacity came from carbon-free sources, especially solar and storage."
"That said, there are signs of change as policies and the flow of federal support changes," he added. "Electrification is picking up across sectors—from transportation to heavy industry—and major companies are leaning into low/zero-carbon power."
Simpkins says clean tech is also pulling in serious venture funding.
"Underneath all of this is a growing focus on resilience, as climate, supply chain, geopolitical, and other risks push energy players to think more locally and strategically."
Abilene-based Natura Resources, which uses molten salt to cool reactors, has a permit from the U.S. Nuclear Regulatory Commission (NRC) to build a small molten salt reactor beneath a new lab at Abilene Christian University. The reactor will sit in an underground trench 25 feet deep and 80 feet long, covered by concrete and serviced by a 40-ton crane.
California-based Kairos Power is constructing a 35-megawatt Hermes test reactor in Oak Ridge, Tennessee, under an NRC permit granted in 2023.
In May, the NRC accepted Dow's permit application to build X-energy's first small modular reactor plant in Seadrift, Texas. The Long Mott Generating Station would include four Xe-100 reactors at Dow's chemical facility in Southeast Texas.
Simpkins says he's excited about the recent resurgence of nuclear energy.
"There's more momentum now behind the revival of nuclear than ever before, and for good reason," he said. "Nuclear offers a powerful combination of ultra-low carbon emissions and high reliability, operating at over 90% capacity.
"With AI and data centers driving massive new demand on the grid, we need steady, scalable, and affordable baseload power," said Simpkins. "In 2023, nuclear supplied 19% of U.S. electricity and nearly half of all carbon-free generation—making it an essential pillar of a decarbonized, digitally driven energy future."
However, Simpkins says that nuclear energy faces challenges. "Cost and regulatory complexity are front and center—building nuclear on time and on budget will be important to those considering nuclear and its costs."
"Having more standardized, scalable approaches to construction and real movement on the licensing will help as well," said Simpkins. "Financing is another key piece - not just the cost and being on time and on budget, but these are large programs - and a lot of money for utilities to finance."
Simpkins says that having the appropriate financing mechanisms will help de-risk nuclear projects.
"And beyond all that, building public trust and figuring out a long-term plan for waste are essential if we want to see nuclear scale in a meaningful way," he said. "As of now, there are signs that are moving in the direction of progressing the advancement of nuclear power."
PWC's Simpkins says startups are driving exciting innovation in the energy space right now.
"Whether it's advanced nuclear designs, long-duration storage, or AI tools to optimize the grid, they are tackling some of the toughest technical and operational challenges head-on," said Simpkins. "Just last year, U.S. clean energy startups raised over $7.6 billion in venture capital—which tells you there's not just momentum, but real belief in the role these companies can play in the power ecosystem."
California startup Valar Atomics secured $19 million in seed funding and announced in May that it was partnering with the State of Utah to have a nuclear test reactor running in the state by 2026.
The global distributed energy generation market was valued at $360 billion in 2023 and is projected to reach $1.4 trillion by 2033.
In April, Aalo Atomics, a nuclear energy startup in Austin, announced the Aalo Pod, a portable nuclear power plant designed for AI and data centers. The company has raised $27 million in Series A funding for its reactor design.
Final Frontier, also based in Austin, is developing a portable modular reactor called the Cube. It is expected to be deployed between 2028 and 2030 to power AI data centers and industrial sites. The company has $3 million in self-funding.
Teague Egan, CEO and founder of Final Frontier and EnergyX says portable and modular energy is the best way forward for distributed energy.
"It allows industrial manufacturing plants, AI data centers, and remote communities to have their own power sources," said Egan. "It allows flexibility, decentralization, distribution, and many other positive attributes."
Egan says the Cube's initial use cases will be AI data centers and industrial manufacturing plants, including lithium production facilities being built by EnergyX.
"We are building remote lithium processing plants in the high desert salt flats of the Andean mountain range where power is expensive and hard to come by," said Egan. "If we had a Final Frontier Cube, this would solve a lot of problems for us."
He adds that the Cube will eventually be used to power residential homes.
"The 20 Megawatt Energy (MWe) from the Cube will be able to power approximately 20,000 average-sized homes," said Egan.
Egan says the Cube is being developed around nuclear fission technology, with molten salt reactors as the current pathway. "Generally speaking this has high thermal efficiency, operates at atmospheric pressure, uses thorium, and has inherent safety."
Egan says the company intends to incorporate AI into the Cube's operation.
"Operational conditions such as safety checks and operating limits will be heavily monitored by AI," said Egan. "You can think of it as an AI-Smart Cube. As we develop the actual nuclear engineering and physics that goes into the Cube's development, AI plays a large role in the modeling and simulation for our designs and engineering."
Like Simpkins, Egan identifies the regulatory burden as a significant barrier to nuclear energy growth.
"I think if we get past the overburdensome regulation, we will quickly see widespread adoption, and the 'golden hour' of nuclear power will be around the turn of the decade into the 2030s," he said.
"The main thing that needs to change to accelerate adoption is regulation," Egan said. 'We literally have the answer to the world's energy problem and unnecessary regulation holding society back.'
