TerraPower’s nuclear reactor has a secret weapon for powering AI data centers

Nuclear power startups have been pitching themselves as the antidote to what ails AI data centers: power that’s always available. Bill Gates-founded TerraPower is one of the latest to throw its hat that into that ring, with Bloomberg reporting that the startup plans to announce its first data center project this year.

TerraPower did not say who the customer will be, though in January, it announced that Meta had agreed to buy eight of its Natrium power plants. The data center project, expected to break ground in 2027, would be the company’s second power plant, with its first already under construction in Wyoming.

Not every nuclear reactor is suited to data center duty, but TerraPower possesses one key advantage — energy storage — that promises to give it an edge over competitors. And it’s all thanks to renewable power sources like wind and solar.

Nuclear reactors, TerraPower’s included, work best when they’re running at full tilt. Of all the different types of power plants, nuclear reactors have the highest capacity factor — 92.5% of the time, they generate at maximum power in the U.S. But in a way, they need to be. Existing reactors are slow to ramp up and down, capable of increasing or decreasing only about 5% of their total rated output per minute, according to the National Laboratory of the Rockies.