Bill Gates’s nuclear startup to power data centers in new partnership

A new partnership between Bill Gates’ nuclear startup TerraPower and Sabey Data Centers aims to power data centers with advanced nuclear reactors, marking a significant development in the intersection of nuclear energy and tech infrastructure.

The deal structure: TerraPower and Sabey Data Centers signed a memorandum of understanding to explore nuclear power opportunities for data center operations in Texas and the Rocky Mountain region.

• The collaboration focuses on deploying TerraPower’s Natrium reactor design to power both existing and future data center facilities
• TerraPower’s Natrium reactor is currently the only advanced technology of its kind with a pending commercial reactor construction permit application with the U.S. Nuclear Regulatory Commission
• The company’s demonstration project in Wyoming, which broke ground last year, is expected to begin operations in 2030

Market drivers: Growing energy demands from AI-powered data centers are pushing tech companies to seek reliable, clean energy sources.

• Data center electricity consumption has tripled in the past decade, according to Lawrence Berkeley National Laboratory
• Major tech companies are increasingly turning to nuclear power solutions, with Microsoft recently arranging to restart a retired reactor at Three Mile Island
• Both Google and Amazon have announced plans to support advanced reactor development for their data center operations

Technical challenges: The path to implementation faces several hurdles that need to be addressed.

• TerraPower’s next-generation reactor technology must still clear regulatory requirements
• The company needs to demonstrate commercial viability of its smaller, more easily sited reactor design
• Environmental concerns regarding uranium mining and radioactive waste storage continue to generate opposition from some advocacy groups

Industry perspective: Key stakeholders emphasize the transformative potential of this collaboration.

• TerraPower CEO Chris Levesque highlighted the unprecedented pace of energy sector transformation and the need for strategic industry partnerships
• Bill Gates, TerraPower’s founder, has expressed strong support for nuclear energy as a solution to climate change, citing advances in safety, fuel use, and waste management

Looking ahead: The success of this partnership could signal a broader shift in how data centers approach their energy needs, though significant technical and regulatory challenges remain before TerraPower’s nuclear solutions can be fully implemented. The outcome of the Wyoming demonstration project will likely serve as a crucial indicator of the technology’s commercial viability and its potential to reshape the relationship between nuclear power and digital infrastructure.