Crusoe and Aalo will build the world's first AI factory powered by small nuclear reactors.
The high-performance computing market is on the verge of a tectonic shift. Crusoe and Aalo Atomics have announced a strategic alliance aimed at creating the world's first specialized AI factory, powered by small modular nuclear reactors (SMRs). This is not just a pilot project, but an ambitious attempt to prove that nuclear generation can become a reliable foundation for the most energy-intensive AI workloads.
Pilot in Idaho and Commercial Scale
The first pilot data center of the Crusoe Spark cloud service is planned to launch as early as 2027 at the Idaho National Laboratory. However, the true scope of the partnership is revealed in plans for late 2029: by that time, the companies intend to deploy modular Aalo Pods power units at Crusoe facilities, with a total nuclear power plant capacity of 50 MW.
Aalo Atomics CEO Matt Loshak confirmed that the company has already begun construction of a second reactor next to the Aalo-X test unit (with a capacity of 10 MW) in Idaho. The commercial-scale system being created will directly power the Crusoe Spark infrastructure. Notably, Aalo was among four companies that achieved criticality for their reactors within the deadline under the U.S. Department of Energy's pilot program. However, this status is only an intermediate stage and does not constitute a license for commercial operation.
Texas Megacampus and Environmental Risks
In parallel, Crusoe is expanding its Texas campus in Goodnight. According to a filed application, the company plans to build two additional buildings with a total cost of about $1 billion. The first building is expected to be completed by August 1, and the second by March 2027. As a result, the facility will include at least six buildings, with the power needs of just the first phase reaching up to 530 MW.
However, such expansion raises questions among environmentalists. A previous investigation revealed that data center developers in Texas often used simplified permitting procedures to begin construction of their own power plants, avoiding public hearings on environmental impact. This creates a dangerous precedent where the pace of technological development outpaces regulatory mechanisms.
My view: The synergy between AI and nuclear energy is a logical response to the power grid crisis, but the stakes here are extremely high. The success of the Crusoe and Aalo project could become a catalyst for a new wave of nuclear energy, but without transparent dialogue with the public and strict compliance with environmental standards, this race for computing power risks turning into reputational and legal problems for the entire industry.