Nuclear companies are taking an old approach to building new reactors. Rather than trying to put new designs up or build large quantities of small reactors, we want to develop a range of reactors using existing designs.
The 2-year-old startup announced Series A last month. This included investments from CIV, GoldCrest Capital, MCJ Collective, True Ventures and Wonder Ventures, but did not disclose the amount raised. Now, TechCrunch has learned that the company has secured $51.3 million in Series A and has increased its total funding to $70 million.
The nuclear company was founded in 2023 by three consecutive entrepreneurs. Former Appharvest CEO Jonathan Webb, Arcadia CEO Kiran Bhatraju, and CEO Patrick Maloney. Startups prioritize sites that already have permission or licenses to operate. According to a combination of operating licenses from the Nuclear Regulation Commission and initial site permits, fewer than 12 locations fall under that rubric.
Sites close to groundbreaking locations can support nuclear reactors, each with a 1 gigawatt production capacity. The nuclear power company aims to develop 6 gigawatts in its first fleet.
A funding round arrives as tech companies and utilities struggle to secure the power of their data centers. According to the grid strategy, after years of stable consumption, US electricity demand is expected to surge nearly 16% by 2029. Data centers are large drivers. Their use of electricity could be quadrupled by the end of the decade.
In the face of potential blackouts, tech companies have been working with nuclear startups and developers. While Google is working with Kairos to build a tiny 500 megawatt modular reactor (SMR), Amazon has taken part in a massive $700 million round to fund X-Energy’s SMR plan. Meta has built up production capacity of up to 4 gigawatts in search of suggestions from developers, and Microsoft is working with Constellation Energy to reopen nuclear reactors on the three-mile island.
However, nuclear power is facing headwinds, both predictable and unexpected. Competition with solar power is among the former. High-tech companies and data center operators are increasing their capabilities from solar farms as they sign large transactions. These farms are frequently paired with large quantities of batteries to provide 24/7 power. The technology is inexpensive and new projects can be developed in about 18 months.
Nuclear power could soon face other economic hurdles. This week, the House Ways and Means Committee released a draft settlement bill that would kill nuclear subsidies granted under the Inflation Reduction Act. Nuclear power plants currently qualify for a tax credit of up to $15 per megawatt hour.
Most new nuclear power plants, including those found on nuclear companies’ timelines, are not expected to be online until the early 2030s. Given that forecasts for the next five years are very different, it is possible that a large nuclear power plant that will be in service in 10 years from now will hold the bags.
Update: Funding and total funding for Final Series A has been added.
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