How TerraPower’s Natrium Reactor Could Power the AI Data Center Boom

As artificial intelligence drives explosive growth in data center electricity demand, nuclear power companies are racing to position themselves as reliable, carbon-free suppliers. Among them, Bill Gates-founded TerraPower stands out with its Natrium reactor design, which includes a distinctive energy storage feature that could prove especially well-suited to powering AI infrastructure.TerraPower is preparing to announce a second U.S. power plant project this year, one intended to serve a data center customer. The project is expected to break ground in 2027 and would follow the company’s first commercial Natrium plant, already under construction in Kemmerer, Wyoming.The Natrium DesignNatrium is a 345-megawatt sodium-cooled fast reactor paired with a large molten salt energy storage system. Unlike traditional nuclear plants that are optimized for steady baseload output, Natrium was designed with flexibility in mind.The reactor itself runs continuously at full power. Excess heat is stored in a massive tank of molten sodium. When electricity demand rises — whether due to grid needs or spikes in data center load — the plant can draw on that stored heat to boost output temporarily to as much as 500 megawatts.This storage capability allows the plant to ramp power up and down more quickly without constantly adjusting the reactor’s core. It effectively combines the high capacity factor of nuclear generation with a form of thermal energy storage.Why This Matters for AI Data CentersAI data centers require enormous amounts of reliable, around-the-clock power. They also experience fluctuating loads depending on training runs, inference workloads, and operational patterns. Traditional nuclear plants excel at constant output but can be less flexible in responding to rapid changes in demand.TerraPower’s storage system addresses that gap. By decoupling the reactor’s steady operation from the plant’s electricity output, Natrium can better match the variable needs of large compute facilities while still delivering carbon-free power.The company has already secured a significant agreement with Meta. In early 2026, Meta committed to supporting the development of up to eight Natrium plants in the United States, potentially providing multi-gigawatts of clean power for its data center operations.Progress and TimelineTerraPower’s first commercial plant in Wyoming received a construction permit from the U.S. Nuclear Regulatory Commission earlier in 2026 — the first such approval for a commercial advanced (non-light-water) reactor in decades. Construction is underway, with commercial operation targeted for the early 2030s.The planned data center-focused project would be the company’s second plant. CEO Chris Levesque has indicated the company expects to announce details later this year and aims to break ground in 2027.TerraPower has also been working with partners, including South Korea’s SK Innovation and Hyundai Engineering & Construction, to accelerate deployment and explore additional markets. The company is using advanced digital twin and AI tools to speed up site design and engineering processes.Broader Industry ContextThe surge in AI-related electricity demand has prompted major technology companies to explore nuclear options, including small modular reactors and advanced designs. Several other nuclear startups are pursuing data center deals, but TerraPower’s integrated storage system gives it a differentiated approach.By keeping the reactor running steadily while using stored heat to modulate output, the design aims to improve economics and grid compatibility. It also positions Natrium to work alongside intermittent renewables on the broader power system.Challenges remain, including the need for high-assay low-enriched uranium (HALEU) fuel, long construction timelines typical of nuclear projects, and the still-early stage of the advanced reactor market. Nevertheless, the combination of regulatory progress, major customer interest, and a design tailored for flexibility has put TerraPower in a prominent position.Final ThoughtsTerraPower’s Natrium reactor offers more than just carbon-free baseload power. Its molten salt energy storage system provides a form of flexibility that could prove valuable for the high and sometimes variable electricity needs of AI data centers.As the company prepares to announce its next project and continues construction on its first plant, attention will remain focused on whether this advanced nuclear design can help meet the rapidly growing power demands of the AI era.