Valar Atomics and Nvidia Partner to Power AI Data Center with Small Nuclear Reactor in Water-Saving Push
July 1, 2026
Valar Atomics and Nvidia Partner to Power AI Data Center with Small Nuclear Reactor in Water-Saving Push
The growing energy and water demands of artificial intelligence infrastructure are driving a search for alternative power sources, and a new partnership between nuclear startup Valar Atomics and chip giant Nvidia aims to demonstrate a potential solution. The collaboration, announced in Utah, centers on a small data center powered by a microreactor, marking what the companies describe as the first time a small nuclear reactor has directly powered a data center facility.
Valar Atomics, based in California, conducted a demonstration at the site of its microreactor, powering Nvidia’s Blackwell architecture, the company’s latest AI chip platform designed for data centers. The event was held in Utah, where the reactor is located. Valar is one of roughly ten nuclear energy startups participating in a U.S. Department of Energy reactor pilot program, which aims to have three small reactors reach criticality—the point at which a nuclear reaction becomes self-sustaining—by July 4.
The partnership comes amid rising concerns over the environmental impact of data centers, particularly their consumption of power and water. Nvidia recently announced that its latest data center design, DSX, would use closed-loop liquid cooling, a method it says can reduce facility-cooling water consumption from approximately 2.6 million gallons per megawatt per year to near zero. Valar’s reactor, by contrast, uses helium instead of water for cooling, aligning with broader industry efforts to reduce water use in computing infrastructure.
Public opposition to data center expansion is growing. A Reuters/Ipsos poll conducted last month found that only one in three Americans approve of the rapid pace of data center construction, an issue that has become a talking point ahead of the November 3 midterm elections. The industry’s massive power needs have prompted companies to seek private or “behind-the-meter” power plants, allowing them to bypass traditional permitting, public stakeholder engagement, and grid interconnection processes. While most such projects have relied on natural gas, some firms are now exploring small nuclear reactors as a potential power source for AI infrastructure.
The White House under President Donald Trump has also pushed for expanded nuclear energy. Trump issued executive orders in May aimed at quadrupling U.S. nuclear deployment. “Through this work with Valar Atomics, Nvidia is exploring how behind-the-meter, waterless advanced nuclear systems could support future AI factories built for the scale and reliability accelerated computing requires,” said John Josephakis, a global vice president at Nvidia.
Valar founder Isaiah Taylor said the startup is seeking to prove that nuclear projects, which often face lengthy regulatory hurdles, can be completed quickly. The company has also taken legal action against the Nuclear Regulatory Commission, joining a lawsuit last year alongside the states of Texas and Utah. The suit argues that the NRC does not have licensing authority over certain nuclear microreactors and small modular reactors, and seeks to transfer that oversight to individual states.
Source: channelnewsasia
