Bill Gates-backed nuclear startup TerraPower is preparing to announce its first dedicated data center power project this year, positioning its molten salt-cooled reactor as a uniquely flexible solution for AI workloads that surge and dip unpredictably.
The Bloomberg report follows TerraPower’s January deal with Meta, which agreed to purchase eight of its Natrium power plants. The data center project, expected to break ground in 2027, would be the company’s second reactor, with its first already under construction in Wyoming.
The Molten Salt Advantage
Nuclear reactors typically struggle with the variable power demands of AI data centers. Traditional reactors can only adjust output by roughly 5% per minute, while even newer small modular reactors manage about 10%. Data center loads, especially during AI training or inference, swing dramatically as GPUs respond to tasks. The stress has been severe enough that natural gas turbines powering data centers have broken under the strain.
TerraPower’s 345-megawatt Natrium reactor sidesteps this problem through an ingenious design. Instead of ramping the reactor itself, the company keeps the reactor running at full capacity and stores excess heat in a massive vat of molten sodium. When demand spikes, the stored thermal energy generates additional steam to spin turbines. This approach preserves the high capacity factor that makes nuclear economically viable while providing the flexibility data centers require.
Racing Against Rivals
The strategy was originally designed to complement intermittent renewable sources like wind and solar, not data centers. But the underlying challenge is identical: supply must match demand across wildly different timescales. TerraPower appears to have stumbled into a design that fits both use cases.
The competitive landscape is crowded. Oklo, Kairos Power, and X-energy are all pursuing nuclear solutions for data centers. But TerraPower’s energy storage integration sets it apart. Most competitors must pair their reactors with external battery banks, adding cost and complexity. TerraPower bakes storage directly into the reactor design.
For data center operators, the promise is compelling: always-on nuclear baseload power that can follow GPU workloads without the lag or the breaking points that fossil fuel backup systems have shown.
The broader AI infrastructure buildout is driving nuclear’s renaissance. Major cloud providers have committed tens of billions to power procurement, and nuclear’s zero-carbon profile makes it politically attractive. TerraPower is betting that its integrated thermal storage gives it an edge in a market where reliability and flexibility matter as much as raw megawatts.
Sources: TechCrunch; Bloomberg; US Department of Energy; National Renewable Energy Laboratory
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