Nuclear Company Raises $46M for Large Reactor Development

The Nuclear Company, a startup focused on developing large-scale nuclear reactors, has secured $46.3 million in Series A funding. The round, backed by investors including CIV, Goldcrest Capital, MCJ Collective, True Ventures, and Wonder Ventures, aims to support the development of a 6-gigawatt reactor fleet.

Founded in 2023, The Nuclear Company is pursuing a unique strategy. Instead of designing new reactors, it plans to utilize existing designs at sites already holding permits or licenses. This approach targets a small number of pre-approved locations, streamlining the development process.

Addressing Growing Energy Demands

This investment comes amidst rising electricity demand, projected to increase nearly 16% by 2029. Data centers, a key driver of this growth, are expected to quadruple their electricity consumption by the end of the decade. The Nuclear Company aims to address this growing need with its large-scale nuclear power plants.

Several tech giants are exploring nuclear energy to power their data centers. Google is collaborating with Kairos on small modular reactors (SMRs), while Amazon has invested in X-energy's SMR program. Meta is seeking proposals for up to 4 gigawatts of nuclear capacity, and Microsoft is working with Constellation Energy to restart a reactor at Three Mile Island.

Challenges and Competition

Despite the growing interest in nuclear power, the industry faces challenges. Competition from renewable energy sources, particularly solar paired with battery storage, presents a significant hurdle. Solar projects offer faster development timelines and lower costs.

Furthermore, proposed changes to federal subsidies could impact the nuclear industry. A draft bill by the House Ways and Means Committee proposes eliminating nuclear power tax credits established under the Inflation Reduction Act.

With most new nuclear plants, including those planned by The Nuclear Company, not expected online until the early 2030s, the long-term outlook remains uncertain. The evolving energy landscape and potential policy changes pose significant challenges for the nuclear industry.

Original reporting by TechCrunch: