Aalo Atomics has officially achieved reactor criticality with its Aalo-X Critical Test Reactor at the Idaho National Laboratory, marking a pivotal step toward deploying modular nuclear power for commercial data centers. The 10-megawatt electric (MWe) system successfully sustained a controlled nuclear fission chain reaction on July 4, operating without the need for an external neutron source. The milestone was authorized under the U.S. Department of Energy's Reactor Pilot Program.
This development is critical for cloud providers and AI infrastructure operators seeking reliable, carbon-free energy to support rapidly expanding computing demands. By proving that a compact reactor can sustain criticality, Aalo Atomics is moving closer to commercializing its Aalo Pod system, which is designed to be deployed directly alongside energy-intensive facilities.
Matt Loszak, CEO of Aalo Atomics, noted that the Aalo-X test unit shares the exact full-scale core components as the company's planned commercial reactors. "The Aalo-X's 10 MWe reactor design positions it as the premier power provider for the modern data center," Loszak stated, adding that the next major hurdle is securing authorization from the Nuclear Regulatory Commission for widespread deployment. The fuel rods for the test reactor were manufactured and delivered in April by GE Vernova's Global Nuclear Fuel business.
Project Ascension and AI Integration
Aalo Atomics is already advancing its next phase, dubbed Project Ascension, which involves constructing a second reactor at the Idaho National Laboratory. This upcoming commercial-scale system is expected to generate electricity and supply power to an on-site data center within the coming months. The company aims to provide a scalable power option for enterprises within the next 18 months.
To manage these deployments, Aalo recently announced a strategic collaboration with Microsoft and Nvidia. The partnership is focused on developing an automated co-piloting system designed to manage entire fleets of nuclear reactors, integrating advanced software controls into the hardware's operational framework.
The AI Power Race Goes Nuclear
The 10-MWe capacity of the Aalo-X reactor represents a fundamental shift in data center topology. Instead of relying on aging national power grids or waiting decades for massive gigawatt-scale nuclear plants to be built, tech companies can now look toward grid-independent, co-located power sources. A 10-megawatt module is small enough to be deployed in clusters, allowing data center operators to scale their power generation precisely in tandem with their server expansions.
Furthermore, the collaboration with Microsoft and Nvidia reveals a future where nuclear reactors are managed much like server racks. By developing an automated co-piloting system, Aalo is treating nuclear power generation as a software-defined infrastructure problem. This level of automation will be essential if tech giants intend to deploy dozens of these small modular reactors across various geographic locations to feed the insatiable energy demands of next-generation AI models.
