Amidst the surge in power demand for artificial intelligence (AI) data centers, a Texas-based energy developer has proposed a unique plan to repurpose retired U.S. Navy nuclear propulsion systems to power them. This approach is gaining attention as a novel solution for civilian data infrastructure, which demands high-performance, 24-hour power supply.
The plan is being led by HGP Intelligent Energy, which submitted an application to the U.S. Department of Energy requesting a loan guarantee under the government's energy finance program for the "CoreHeld Project." Specifically, the company would install two retired naval nuclear reactors near Oak Ridge National Laboratory in Tennessee to power a large-scale data center.
The reactors HGP plans to utilize are pressurized water reactors, which have powered US Navy aircraft carriers and submarines for decades. Manufactured by companies like Westinghouse and General Electric (GE), these facilities have proven their long-term operability and safety, and their highly sealed construction allows for high maintenance efficiency. If realized, these projects will be able to supply 450 and 520 megawatts of baseload power, respectively, reliably meeting the power demands of increasingly demanding AI learning and inference workloads.
The projected total investment is estimated at $1.8 billion to $2.1 billion (approximately KRW 2.592 trillion to KRW 3.024 trillion), or approximately $1 million to $4 million per megawatt. This represents a cost-competitive advantage over building new nuclear power plants or small modular reactors (SMRs). However, regulatory hurdles remain before this plan can be realized. Military reactors typically use highly enriched fuel and are incompatible with the current civilian licensing system of the U.S. Nuclear Regulatory Commission (NRC), necessitating regulatory improvements.
Regarding this, HGP CEO Gregory Forero expressed confidence, saying, "We have the expertise to safely execute this project at scale, and we've already established a foundation with investors and partners." Indeed, as the US power grid is being restructured around AI computing, cloud companies and infrastructure operators are turning their attention to nuclear power as a carbon-neutral, always-on energy source. It is emerging as an alternative that can simultaneously address climate change and ensure power stability.
Meanwhile, movements reflecting this trend are becoming visible in the investment market. X-energy, a company developing mini-reactors, raised $700 million (approximately KRW 1.08 trillion) in November, and Radiant Industries, which has introduced a mobile, mass-producible micro-reactor, raised over $300 million (approximately KRW 432 billion) this month. The trend of the future of AI infrastructure power broadening its intersection with nuclear power is expected to reach a critical turning point depending on how regulation, technology, and finance intertwine in the future.
Get real-time news... Go to TokenPost Telegram
Copyright ยฉ TokenPost. Unauthorized reproduction and redistribution prohibited.
