‘World’s first’ nuclear-powered AI factory soon to be built as Crusoe, Aalo Atomics join hands

The next generation of AI infrastructure demands power that is reliable, abundant, and clean.Narumon/Crusoe A Colorado-based company has joined hands with the maker of fully modular nuclear reactors (XMRs) to power modern AI data centers. The new partnership between Crusoe and Aalo Atomics is aimed at developing and deploying the first nuclear-powered AI factory data center designed to validate nuclear power’s effectiveness with AI workloads. Next generation of AI infrastructure “The next generation of AI infrastructure demands power that is reliable, abundant, clean and at scale, and Aalo’s nuclear reactors are built to meet that need,” said Cully Cavness, co-founder, president and chief strategy officer, Crusoe. “One of Crusoe’s core values is to ‘bend the arc of energy toward sustainability,’ and within that value we embrace the principle of using Crusoe’s market position to support and accelerate energy innovation. In line with our core values, we look forward to Aalo and Crusoe jointly demonstrating to the industry the first AI data center powered by a small modular nuclear reactor.”Aalo revealed that the company will initially power a Crusoe Spark modular data center, running Crusoe Cloud, in 2027 at Idaho National Laboratory as a proof of concept. Looking forward, Aalo and Crusoe intend to deploy Aalo Pods and Aalo’s 50 MWe XMR power plants at Crusoe data centers, by the end of 2029, according to a press release. “As one of only four companies to reach criticality by President Trump’s deadline for companies in the DOE Reactor Pilot Program, we are now well positioned for not only the full power operation of our 10 MWe Aalo-X reactor, but also the deployment of the Aalo Pod to power commercial data centers,” said Matt Loszak, CEO, Aalo Atomics. “We are now the only nuclear technology company to design and build a nuclear reactor fueled to produce 10MW of electricity– an achievement that positions Aalo as the premier power provider for the modern data center.” Energy-first solution for AI infrastructure Aalo also highlighted that the company has already begun work on its second nuclear reactor (located next to the Aalo-X test reactor at INL), testing a commercial-scale system that will produce electricity and power for an on-site Crusoe Sparkmodular data center.Crusoe has also highlighted that as AI factory company, it plans to accelerate the abundance of energy and intelligence. The company states that it provides a reliable, scalable, cost-effective, energy-first solution for AI infrastructure. By harnessing large-scale energy sources, building AI-optimized data centers, and delivering a powerful AI cloud platform, Crusoe empowers its customers and partners to build the future faster. Beyond supporting AI development, the partnership highlights a broader trend toward integrating advanced energy technologies with digital infrastructure. As governments and technology companies seek cleaner ways to power data centers, nuclear energy is increasingly being considered a viable long-term solution alongside renewable sources such as solar and wind.If successful, the initiative could serve as a blueprint for future AI factories around the world, demonstrating how advanced nuclear reactors can help meet the immense energy demands of artificial intelligence while supporting global decarbonization goals. It also reflects the growing recognition that solving AI’s energy challenge will require innovative collaborations between the technology and energy sectors.Recommended ArticlesGet the latest in engineering, tech, space & science - delivered daily to your inbox.Prabhat, an alumnus of the Indian Institute of Mass Communication, is a tech and defense journalist. While he enjoys writing on modern weapons and emerging tech, he has also reported on global politics and business. He has been previously associated with well-known media houses, including the International Business Times (Singapore Edition) and ANI.