TerraPower Plans Nuclear Data Center Project to Supply AI Infrastructure

Bill Gates-founded TerraPower intends to announce its first data center project this year. [1] The project is scheduled to begin construction in 2027 and will be the company's second power plant. [1] While the specific data center customer has not been named, TerraPower previously announced in January that Meta agreed to purchase eight of its Natrium power plants. [1] TerraPower's first plant is already under construction in Wyoming. [1]

Nuclear power startups are offering their services to AI data centers because they provide constantly available power. [1] In the United States, nuclear reactors operate at maximum power 92.5% of the time, representing the highest capacity factor among power plant types. [1] While existing reactors can only adjust their output by about 5% per minute, new small modular reactors can react faster, changing output by approximately 10% per minute. [1] TerraPower's reactors utilize energy storage, which gives the company an advantage over competitors. [1]

TerraPower’s move into data center power highlights a growing intersection between advanced nuclear technology and the rapidly expanding energy requirements of AI infrastructure. By targeting a 2027 groundbreaking for its second plant, the company is positioning its small modular reactors as a high-uptime alternative for tech giants like Meta, moving beyond traditional grid reliance. The inclusion of energy storage alongside nuclear generation helps manage the high capital expenditures associated with nuclear technology by ensuring the plant remains efficient even during output adjustments. What the sources don't address: How the pricing and regulatory approval timeline of TerraPower's SMR-generated electricity will compare to established renewable power purchase agreements currently utilized by major data center operators.