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.[2][3][4] 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.[2][3] 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.[2][3] 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.[1]