X-energy, a developer of small modular nuclear reactors (SMRs) backed by Amazon, has raised more than $1 billion in its initial public offering (IPO). The company sold a total of 44.3 million shares as part of an upsized offering, according to a report from Data Center Dynamics.
The IPO underscores a growing trend: AI infrastructure's insatiable appetite for electricity is driving major technology companies to invest in nuclear power. SMRs, which are smaller and potentially faster to deploy than traditional nuclear plants, are seen as a key solution for powering data centers around the clock with carbon-free energy.
Key Takeaways
- X-energy, an Amazon-backed small modular reactor firm, raised over $1 billion in its IPO by selling 44.3 million shares.
- The funding targets SMRs to power AI data centers, addressing soaring energy demands from AI infrastructure.
What's New
X-energy's IPO raised over $1 billion, exceeding initial expectations with an upsized share offering of 44.3 million shares. The company is a developer of SMR technology, which aims to provide scalable, on-site nuclear power for large energy consumers like data centers.
Amazon is a notable backer of X-energy. The e-commerce and cloud giant has been actively investing in nuclear energy to meet the power demands of its AWS data centers, which are increasingly consumed by AI workloads. X-energy's SMRs are designed to be factory-built and assembled on-site, potentially reducing construction timelines and costs compared to conventional reactors.
Technical Details
X-energy's SMR design, the Xe-100, is a high-temperature gas-cooled reactor (HTGR) that uses uranium fuel pebbles. Each unit is rated at 80 MWe (megawatts electric) and can be scaled in increments of 4 units to form a 320 MWe plant. The reactor operates at higher temperatures than traditional light-water reactors, enabling higher efficiency and potential use in industrial heat applications.
The company has received approval from the U.S. Nuclear Regulatory Commission (NRC) for its reactor design and is pursuing licensing for a commercial facility. X-energy's technology is part of a broader push by the U.S. Department of Energy to advance advanced nuclear reactors.
How It Compares
X-energy competes with other SMR developers such as NuScale Power, TerraPower (backed by Bill Gates), and GE Hitachi Nuclear Energy. NuScale went public via a SPAC in 2022 but faced project cancellations and cost overruns. TerraPower is building a demonstration plant in Wyoming using a sodium-cooled fast reactor design.
Compared to traditional nuclear plants, SMRs promise lower upfront capital costs and shorter construction times. However, no commercial SMR has yet been deployed in the United States. X-energy's IPO provides capital to advance its first commercial projects, which are expected to be operational in the late 2020s or early 2030s.
What to Watch
Key risks include regulatory hurdles, construction delays, and cost overruns that have plagued previous nuclear projects. X-energy must also secure customers beyond Amazon to justify its valuation. The company's success depends on demonstrating that SMRs can be built on time and on budget.
Another factor is competition from other clean energy sources like solar, wind, and battery storage, which are cheaper but less reliable for 24/7 data center operations. Nuclear power's advantage is its ability to provide baseload power without carbon emissions.
gentic.news Analysis
X-energy's IPO is a bellwether for the intersection of AI infrastructure and energy markets. As we covered in our recent piece on Google Cloud Next '26, the hyperscalers are investing billions in data center capacity, with Google committing $5 billion for a Texas data center to power Anthropic's AI workloads. Amazon's investment in X-energy follows a similar logic: AI models require enormous compute, which requires enormous electricity.
The timing is notable. Amazon has invested $4 billion in Anthropic and is building custom AI chips (Trainium, Inferentia). Powering those chips with carbon-free energy is a strategic imperative, especially as AI training clusters can consume 100 MW or more. SMRs offer a path to colocate generation with compute, reducing transmission losses and grid dependence.
However, the nuclear industry's track record is mixed. NuScale's stock has fallen sharply since its SPAC merger, and its first project was canceled due to rising costs. X-energy faces similar challenges but benefits from Amazon's deep pockets and long-term commitment. If X-energy can deliver even one commercial SMR plant, it could unlock a wave of investment from other tech giants facing the same energy constraints.
The broader trend is clear: AI is driving a renaissance in nuclear energy. We've seen similar moves from Microsoft, which signed a power purchase agreement with Constellation Energy to restart a unit at Three Mile Island. Google has explored advanced geothermal and nuclear options. The AI industry's energy problem is becoming a nuclear energy opportunity.
Frequently Asked Questions
What is X-energy's SMR technology?
X-energy's Xe-100 is a high-temperature gas-cooled reactor that uses uranium pebbles as fuel. Each unit produces 80 MWe and can be combined into 320 MWe plants. It operates at higher temperatures than traditional reactors, improving efficiency and enabling industrial heat applications.
How much money did X-energy raise in its IPO?
X-energy raised over $1 billion by selling 44.3 million shares in an upsized IPO. The exact valuation was not disclosed, but the offering exceeded initial expectations.
Why is Amazon backing X-energy?
Amazon is investing in X-energy to secure carbon-free, 24/7 power for its AWS data centers, which are consuming increasing amounts of electricity due to AI workloads. SMRs offer a scalable, on-site power solution.
When will X-energy's SMRs be operational?
X-energy's first commercial projects are expected to be operational in the late 2020s or early 2030s, pending regulatory approvals and construction timelines. The company has received NRC design approval but still needs site-specific licenses.
