Texas Startup Achieves Criticality in Small Modular Nuclear Reactor Designed for AI Infrastructure

• July 9, 2026

Texas-based startup Aalo Atomics recently announced achieving a self-sustaining nuclear fission reaction in its small modular reactor (SMR) engineered to supply power for data centers and artificial intelligence (AI) infrastructure. This milestone marks an important step forward in developing compact nuclear solutions tailored for high-demand computing environments.

Small Modular Reactor Demonstrates Stable Operation

The reactor operated at criticality, indicating it sustained nuclear fission without external intervention. The thermal power generated in this phase will eventually be converted into steam to drive turbines connected to electric generators. This process aims to deliver reliable, continuous electricity specifically to power intensive computing facilities.

Aalo Atomics’ development comes amid growing interest from technology companies in utilizing nuclear reactors as a clean, stable energy source to meet the rapidly increasing power requirements of AI workloads and cloud data centers. Microsoft has partially backed Aalo Atomics, seeking to reduce the carbon footprint of its data centers by integrating advanced nuclear energy systems.

Small modular reactors like Aalo’s are designed to offer flexible, scalable power solutions compared to traditional large nuclear plants. Their compact size and modular construction enable deployment closer to demand centers, minimizing transmission losses and enhancing energy security.

The achievement of criticality represents a key technical milestone, demonstrating that the reactor’s design performs as intended under operational conditions. Future phases will focus on sustaining power output, safely managing thermal byproducts, and integrating the system with power conversion infrastructure to supply usable electricity.

While details regarding the reactor’s capacity, timeline for full deployment, and commercial availability have not been disclosed, this progress highlights nuclear technology’s potential role in supporting the expanding energy needs of AI and cloud computing sectors.

Aalo Atomics and its investors continue to advance research and development aimed at bringing practical nuclear solutions into the data center ecosystem. If successful, their technology could contribute to diversifying energy sources, improving grid resilience, and lowering environmental impacts associated with growing computational demands.

Aalo Atomics has reached a key milestone with its small nuclear reactor aimed at powering data centers and AI infrastructure.