Can Trump-Backed Aalo Atomics Cut Data Centre Emissions?
Aalo Atomics (Aalo) begins construction on its Aalo-X experimental reactor next to the Idaho National Laboratory (INL), becoming the first company to build under President Donald Trump's US Nuclear Reactor Pilot Program.
Backed by the Department of Energy (DOE), the project marks a shift toward nuclear-powered sustainability, with a clear focus on meeting rising energy demands while reducing environmental impact.
The Aalo-X is an experimental extra modular reactor (XMR), sited beside INL’s Materials and Fuels Complex.
Aalo aims for it to achieve criticality, the point at which a nuclear chain reaction becomes self-sustaining, by 4 July 2026.
The target date aligns with the company’s plan to go from “founding to fission” in under three years.
A public-private model for sustainable energy innovation
The Aalo-X reactor is selected through a competitive application process as part of the DOE’s newly formed Nuclear Reactor Pilot Program.
This initiative launches in June 2025 following Executive Order 14301.
It allows advanced nuclear designs to be tested beyond national laboratory sites, opening the door to faster commercial deployment.
For the sustainability sector, this means accelerated innovation in low-carbon power generation.
The pilot programme’s structure allows companies like Aalo to collaborate with national labs while fast-tracking testing protocols.
Its design encourages commercial deployment of advanced reactors to new industries, especially those experiencing surging power needs such as cloud computing and data storage.
“Our selection for the Nuclear Reactor Pilot Program is a significant catalyst for achieving our goal of going from ‘founding to fission’ in less than three years – a feat many deemed impossible just a year ago,” says Matt Loszak, Co-founder and CEO of Aalo Atomics.
“This milestone groundbreaking event is a testament to the potential that can be unlocked when public entities and private companies partner together in the critical interest of the nation.
"This is a pivotal time for the US nuclear energy industry and we are incredibly proud to be at the forefront.”
The INL test site is designed to help validate technologies that support energy scalability and consistent output.
These features are increasingly vital for data centre operators searching for power sources that are both clean and reliable.
As data centres face growing scrutiny for their energy usage, modular nuclear solutions present a path toward zero-carbon operations.
“Today’s groundbreaking symbolises the progress that can be achieved when innovation, vision and national purpose come together,” says John Wagner, Laboratory Director at INL.
“At Idaho National Laboratory, we are proud to support the Department of Energy’s efforts to accelerate advanced nuclear technologies that strengthen America’s energy security, provide reliable power, and inspire the next generation of innovators.
“Projects like Aalo-X reflect the promise of nuclear energy to meet our nation’s historic demand growth and help enable a more prosperous future for our nation.”
Compact nuclear plants for low-impact energy
The Aalo-X serves as the testbed for the company’s commercial system: the Aalo Pod.
The Aalo Pod is a 50 megawatt-electric (MWe) XMR system made up of five Aalo-1 sodium-cooled reactors.
Each unit runs on low-enriched uranium dioxide fuel, chosen for both its availability and established safety record.
This approach limits supply chain challenges and enhances operational safety.
Unlike traditional nuclear plants, the Aalo Pod does not require an external water source.
It is designed for direct onsite deployment next to data centres, using a compact footprint and fully modular architecture.
This allows operators to scale output from megawatts to gigawatts with lower permitting complexity and minimal construction disruption.
A conceptual design of the Aalo Pod shows the units sited alongside data centres, offering a clear energy strategy for digital infrastructure.
This model helps reduce reliance on fossil fuels while avoiding the intermittency challenges faced by wind and solar.
The company is building the Aalo-X reactor at its 40,000-square-foot pilot facility in Austin, Texas.
Once complete, the reactor will be moved to INL for final installation and commissioning.
Aalo expects the operational insights gained from Aalo-X to shape the commercial rollout of the Aalo Pod, targeted for market introduction by 2029.
New nuclear for a new energy age
“When Aalo-X achieves criticality next year, it will become the first new sodium-cooled reactor to start operation in the US in over four decades," says Yasir Arafat, Co-Founder and CTO at Aalo Atomics, who previously led the MARVEL microreactor project at INL
"Aalo-X is just the beginning as we are poised to deploy nuclear power on a scale that far exceeds the first atomic age.”
Sodium-cooled reactor technology, which uses liquid sodium as a coolant rather than water, enables operation at higher temperatures and pressures with increased thermal efficiency.
This makes it attractive for modern applications, particularly where water is scarce or where space and infrastructure are constrained.
The Aalo-X project signals a wider momentum in clean energy innovation.
As demands for zero-emissions infrastructure grow, modular nuclear power is being positioned not as a replacement but as a complement to renewables.
With backing from the federal government and a direct line to the data centre market, Aalo’s technology may help redefine what sustainable energy means in the digital age.
