Austin's Aalo Atomics Raises $100M for Nuclear-Powered AI Data Centers

Aalo Atomics, an Austin-based nuclear innovator founded in 2023, announced $100 million in Series B funding on Aug. 19, 2025, led by Valor Equity Partners. The round brings the company's total funding to over $136 million, with participation from investors including Fine Structure Ventures, Hitachi Ventures, NRG Energy, and Tishman Speyer. The capital will accelerate development of Aalo Pods—compact, 50 megawatt electric (MWe) sodium-cooled reactors using low-enriched uranium, deployable directly at data centers without external water sources.

Aalo recently completed its first full-scale non-nuclear prototype and targets its inaugural operational extra modular reactor (XMR) by 2026. Plans include doubling the workforce to more than 120 employees, expanding a Texas manufacturing plant, and advancing the Aalo-X pilot with the U.S. Department of Energy. These reactors can scale to gigawatt capacity, addressing Texas' surging AI-driven power demand amid ERCOT grid strains in Central Texas hubs like Austin and Round Rock.

Texas' tech boom, fueled by companies like Tesla in Austin and data center expansions in Dallas-Fort Worth, has spotlighted nuclear solutions. Aalo's on-site power plants offer a flexible alternative to traditional grids, sidestepping transmission bottlenecks. CEO comments highlight the funding's role in commercializing tech for AI infrastructure, positioning Austin as a nuclear renaissance leader.

Separately, Austin's Last Energy raised $100 million in Series C funding for 20-megawatt small modular reactors, including a 5-megawatt DOE pilot at Texas A&M next year. Both firms underscore Central Texas' pivot to nuclear for sustainable AI growth.