Last Energy to Build Pilot Microreactor in Texas, Targeting Data Center Power Demand
December 9, 2025
As the data center industry grapples with surging power demands from artificial intelligence and cloud computing, nuclear microreactors are emerging as a potential solution for reliable, carbon-free baseload power. In a significant step toward commercialization, microreactor developer Last Energy has announced plans to build a pilot reactor in Texas, positioning the technology to serve the massive energy needs of data centers.
The company has partnered with Texas A&M University to construct a pilot microreactor at the Texas A&M–RELLIS campus in Bryan, Texas. This project will test the feasibility of Last Energy’s 5-megawatt PWR-5 reactor, a scaled-down version of its planned 20-megawatt commercial design. The pilot represents Last Energy’s first reactor deployment and is intended to serve as a precursor to a larger, previously announced project involving 30 microreactors in Haskell County, Texas, aimed directly at the data center market.
Testing at the RELLIS site is scheduled to begin in the summer of 2026. Initial operations will focus on low-power criticality tests, with subsequent phases evaluating the reactor's ability to generate electricity for the grid. The company stated it has secured a land lease, obtained a full core load of low-enriched uranium fuel, signed an agreement with the U.S. Department of Energy (DOE), and begun formal licensing submissions. The pilot project was selected to participate in the DOE’s New Reactor Pilot Program, an initiative designed to accelerate the testing and commercialization of advanced reactor designs, and will be financed with private capital.
The move by Last Energy is part of a broader wave of support for small-scale nuclear power within the digital infrastructure sector. Over the past 18 months, major technology firms including Amazon, Google, Oracle, and Equinix have signed long-term power purchase agreements with developers of small modular reactors (SMRs) and microreactors, seeking to secure stable, large-scale clean energy for their operations. The pilot in Texas, therefore, is not just a test of technology but a critical benchmark for an industry eager to see these novel power sources move from concept to reality.
In a related development underscoring federal support for advanced nuclear, the DOE recently selected the Tennessee Valley Authority (TVA) and Holtec International as the first recipients of funding from a program launched in October 2024. The program has allocated up to $800 million to support the initial deployment of Generation III+ small modular reactors. TVA will use the funds for a 300-megawatt SMR project in Tennessee, while Holtec plans to deploy two 300-megawatt units in Michigan in the early 2030s.
The convergence of private sector investment, academic partnership, and federal funding initiatives signals a pivotal moment for advanced nuclear technology. For the data center industry, facing both exponential growth and intense pressure to decarbonize, the successful demonstration of projects like Last Energy’s Texas pilot could unlock a new, scalable pathway to meet its formidable energy challenges.
Source: datacenterdynamics
Last Energy to Build Pilot Microreactor in Texas, Targeting Data Center Power Demand
