Nuclear energy startup X-energy has successfully closed a $700 million Series D funding round, capitalizing on surging interest in Small Modular Reactors (SMRs) from tech companies and data center developers. This significant capital injection will accelerate the development and deployment of its advanced nuclear technology, positioning X-energy at the forefront of the clean energy transition.
Funding Milestones and Investor Confidence
The latest funding brings X-energy's total capital raised to $1.8 billion to date, with an impressive $1.4 billion secured in just the past year. This includes an expansion of its Series C round from $500 million to $700 million less than a year ago, underscoring robust investor confidence in the burgeoning nuclear power sector.
The Series D round was led by Jane Street, an existing investor that also participated in the expanded Series C. Other prominent investors joining this round include Ares Management funds, ARK Invest, Corner Capital, Emerson Collective, Galvanize, Hood River Capital Management, NGP, Point72, Reaves Asset Management, Segra Capital Management, and XTX Ventures.
Fueling SMR Development and Strategic Partnerships
X-energy plans to utilize the new funds to bolster the supply chain for its innovative small modular reactors. The company has already secured orders for 144 SMRs, projected to generate a substantial 11 gigawatts of electricity. Notable customers include global giants like Amazon, industrial leader Dow, and British energy firm Centrica.
X-energy specializes in high-temperature, gas-cooled reactors, a design recently employed in countries like Japan and China. Its flagship Xe-100 reactors are designed to produce 80 megawatts of electricity each. These reactors are fueled by unique billiard ball-sized, carbon-coated pebbles containing uranium particles. Inside the reactor core, helium gas circulates over these pebbles, efficiently collecting heat which is then transferred to a steam turbine to generate electricity.
The Nuclear Resurgence and Tech Demand
Like many other nuclear startups, X-energy is benefiting from a renewed wave of interest, particularly from major tech companies and data center developers seeking reliable, carbon-free power sources. Amazon's Climate Pledge Fund, for instance, previously led an installment of X-energy's Series C. Furthermore, Amazon announced plans last year to purchase over 600 megawatts of nuclear capacity in the Pacific Northwest and Virginia, with these reactors expected to come online in the early 2030s. The full scope of Amazon's partnership with X-energy could see up to 5 gigawatts deployed by 2039.
Pioneering the U.S. SMR Market
X-energy is actively competing with several other SMR startups to revitalize the nuclear industry within the United States. While the designs for these advanced reactors show considerable promise, only a handful of SMR power plants have been constructed globally to date, with none yet operational in the United States. X-energy's substantial funding and strategic partnerships position it as a key player in bringing this next generation of nuclear power to fruition.
