Frank Schulenburg / Wikimedia Commons
Why It Matters
A breakthrough partnership between a Utah nuclear company and computing giant NVIDIA has produced the first AI data center powered by a small modular nuclear reactor that requires no water for cooling — a milestone that could reshape how energy-intensive artificial intelligence infrastructure is built across the West. The development addresses two critical challenges facing rural Utah: the region’s severe water scarcity and the growing demand for reliable power to support advanced computing facilities.
What Happened
Valar Atomics, a nuclear startup based in Utah, and NVIDIA announced a partnership Wednesday in Orangeville that centers on a helium-cooled reactor that eliminates the traditional water-cooling requirements of nuclear plants. The reactor, which operates at the San Rafael Energy Lab in Emery County, achieved “criticality” — the point at which a nuclear reaction sustains itself — last month and is now generating 100 kilowatts of electricity.
Isaiah Taylor, founder of Valar Atomics, explained that the company’s design overcomes a major hurdle for data centers in water-constrained regions. “Our architecture reactor that we’ve built here operates at higher temperatures which does not make water cooling necessary,” Taylor said.
NVIDIA revealed plans to construct an AI factory in Emery County, positioning the facility to leverage Valar Atomics’ power supply. The deployment represents a validation of small modular reactor (SMR) technology for industrial computing applications — a sector that demands massive, continuous electrical power.
State Leadership and Timing
Governor Spencer Cox has been promoting nuclear power expansion through an initiative called “Operation Gigawatt,” positioning Utah as a hub for advanced energy and manufacturing. The timing aligns with President Trump’s administration, which set a July 4 deadline for nuclear power pilot projects to come online. Valar Atomics’ achievement met that target.
Emy Lesofski, director of Utah’s Office of Energy Development, signaled the state’s openness to scaling the project. “We’re standing here today…I would never say no,” she said during the announcement.
Expansion Plans and Community Concerns
Valar Atomics intends to scale operations over the next couple of years across Emery County, adding capacity beyond the current 100-kilowatt output. The expansion could position rural Utah as a center for AI infrastructure powered by domestic nuclear energy.
The project comes as Utah has restricted target shooting on wildlife areas amid elevated wildfire risk across 16 counties, and as Rocky Mountain Power has shut off electricity to Utah customers during wildfire threats. Power reliability has emerged as a critical issue for the state, particularly as drought and fire seasons intensify.
Data center development in Utah has drawn mixed reactions. Proposed cryptocurrency and AI computing facilities in Box Elder County, including Kevin O’Leary’s “Stratos Project,” prompted public protests over water use, land impact, and infrastructure strain. In response, Governor Cox issued an executive order establishing guardrails around data center development, signaling the state’s intent to manage growth while attracting advanced manufacturing.
The Technology
Small modular reactors represent a shift from conventional large nuclear plants. Valar Atomics’ helium-cooled design allows the reactor to operate at higher temperatures than water-cooled reactors, eliminating the need to draw on scarce groundwater or surface water sources. For data centers — which typically consume massive amounts of cooling water — this technology addresses a fundamental sustainability challenge in arid regions.
NVIDIA’s AI chips demand reliable, uninterrupted power. A dedicated nuclear reactor on-site provides that stability, insulating the data center from grid fluctuations and reducing operational complexity.
What’s Next
Valar Atomics plans to increase power generation in coming months as it scales operations in Emery County. NVIDIA’s AI factory construction timeline remains to be announced, but the partnership signals confidence in the nuclear-powered computing model. Utah’s regulatory framework and Governor Cox’s supportive stance position the state as a potential destination for similar projects, potentially attracting other technology companies seeking reliable, locally-generated power without water constraints.
About the Author
