Bill Gates' Nuclear Startup Lands Data Center Deal

The demand for clean and reliable energy is surging, driven in large part by the energy-intensive AI revolution. TerraPower, a nuclear energy startup founded by Bill Gates, is stepping up to meet this challenge through a groundbreaking partnership with Sabey Data Centers (SDC), one of the largest data center developers in the U.S. The two companies aim to use advanced nuclear reactors to power current and future data centers, marking a significant step toward sustainable energy solutions for the tech industry.

The Growing Energy Demands of AI

AI-driven data centers are placing immense pressure on global power grids. Electricity consumption from data centers has tripled over the past decade, according to the Lawrence Berkeley National Laboratory (LBL), and this trend is expected to accelerate. As a result, tech giants like Microsoft, Google, and Amazon are turning to nuclear energy as a viable alternative to fossil fuels.

The TerraPower-SDC partnership comes at a pivotal time for the energy sector, which is undergoing rapid transformation. “The energy sector is transforming at an unprecedented pace after decades of business as usual,” said TerraPower CEO Chris Levesque.

The TerraPower Advantage: Advanced Nuclear Reactors

TerraPower's advanced Natrium reactors represent a new era of nuclear energy. These smaller, next-generation reactors are designed to be safer, more efficient, and easier to deploy compared to traditional nuclear power plants. The Natrium design uses a combination of advanced technologies, including molten sodium as a coolant, which enhances safety and efficiency.

Key advantages of advanced reactors like Natrium include:

• Smaller Footprint: Easier to site and integrate into energy grids.
• Climate-Friendly: Provide consistent, zero-carbon energy.
• Safety Features: Designed to minimize risks and reduce waste concerns.

TerraPower’s Natrium reactor is also the only advanced nuclear technology with a pending commercial reactor construction permit application in the U.S. The company broke ground on a demonstration project in Wyoming in 2022, aiming to bring it online by 2030.

Powering the Future: Collaboration with Sabey Data Centers

The memorandum of understanding between TerraPower and SDC sets the stage for deploying nuclear power plants in Texas and the Rocky Mountain region. These plants will be specifically designed to supply clean energy to SDC’s data centers.

Sabey Data Centers is known for its focus on sustainability, and this partnership aligns with its commitment to reducing carbon emissions. Together, the two companies plan to explore the potential of nuclear power to meet the growing energy needs of the tech industry while reducing reliance on fossil fuels.

Challenges Ahead

Despite its promise, nuclear energy continues to face hurdles. Advanced reactor designs like Natrium must navigate rigorous regulatory approval processes and demonstrate commercial viability. Moreover, concerns over uranium mining, radioactive waste storage, and public perception remain barriers to widespread adoption.

“I’m a big believer that nuclear energy can help us solve the climate problem, which is very, very important,” Bill Gates said in an interview with The Verge last year. “There are designs that, in terms of their safety or fuel use or how they handle waste, I think, minimize those problems.”

Tech Industry Embraces Nuclear Energy

TerraPower’s partnership with SDC is part of a broader trend of tech companies turning to nuclear energy. Microsoft recently partnered to restart a retired reactor at Three Mile Island, while Google and Amazon have announced plans to support the development of advanced reactors for their data centers.

This shift toward nuclear energy reflects the urgent need for reliable, scalable, and sustainable power sources as AI and cloud computing drive unprecedented electricity demand.

Final Thoughts

The collaboration between TerraPower and Sabey Data Centers represents a bold step toward a cleaner energy future for the tech industry. By leveraging advanced nuclear reactors, this partnership aims to meet the soaring energy demands of AI while addressing climate concerns.

As the first commercial Natrium reactors move closer to reality, they could set a new standard for how technology companies power their operations—proving that innovation in energy is as essential as innovation in AI.