A nuclear energy startup called Valar Atomics has announced a new partnership with Nvidia to build a small data center in Utah, with both companies saying the project will show how facilities powering artificial intelligence can use far less water than traditional operations.
California-based Valar made the announcement at the Utah location where its small nuclear plant — known as a microreactor — is situated. As part of the unveiling, the company ran a live demonstration powering Nvidia’s Blackwell, the chipmaker’s newest AI chip design for data centers. According to the two companies, this marked the first time a small nuclear reactor has ever been used to power a data center.
Valar is among roughly 10 nuclear energy startups participating in a Department of Energy reactor pilot program. That program set a target of having three small reactors reach criticality — the point at which a nuclear reaction can sustain itself on its own — by July 4.
Nvidia revealed last week that its newest data center design, called DSX, will use a closed-loop liquid cooling system. The company says this approach can slash the amount of water a facility uses for cooling from approximately 2.6 million gallons per megawatt each year down to nearly zero.
The announcement comes at a time when data centers are facing increasing pushback from the public. A Reuters/Ipsos poll conducted last month found that only one in three Americans support the rapid pace at which data centers are being built — an issue that is drawing attention from voters ahead of the November 3 midterm elections.
To meet their enormous power needs, many companies in the industry have been pursuing their own private power sources — sometimes called “behind-the-meter” plants — which allow them to sidestep traditional permitting processes, public input requirements, and grid connection procedures. While most of these projects have involved natural gas, some companies are now looking at emerging small nuclear reactors to fuel their AI infrastructure.
The Trump administration has signaled strong support for small nuclear reactors as part of a broader push to expand power generation across the country. President Donald Trump issued executive orders last May aimed at quadrupling the pace of nuclear deployment.
“Through this work with Valar Atomics, Nvidia is exploring how behind-the-meter, waterless advanced nuclear systems could support future AI factories built for the scale and reliability accelerated computing requires,” said John Josephakis, a global vice president at Nvidia.
Valar founder Isaiah Taylor said the company is working to prove that nuclear projects — which typically face lengthy regulatory hurdles — can actually be completed at a much faster pace. The company says its high-temperature reactor uses helium rather than water for cooling.
Valar also joined a lawsuit filed last year by the states of Texas and Utah against the Nuclear Regulatory Commission, arguing that the agency does not have the authority to license certain nuclear microreactors and small modular reactors. The suit seeks to shift that oversight responsibility to individual states.
