A nuclear power startup and NVIDIA have partnered to build an AI data center that requires no water for cooling, using a small modular reactor and helium-based cooling systems instead. The project, demonstrated in Orangeville, Utah on Wednesday, represents a potential solution to growing concerns about data center environmental impact as artificial intelligence (AI) computing demands surge across the nation.

What Makes This Data Center Different From Traditional Facilities?

Traditional data centers consume enormous amounts of water to cool their servers, raising environmental concerns particularly in water-stressed regions. Valar Atomics, the nuclear startup behind this project, has designed a small modular reactor that operates at higher temperatures, eliminating the need for water cooling. NVIDIA has similarly engineered its computing chips and cooling architecture to work at elevated temperatures, enabling air cooling in a closed-loop system.

The reactor, developed at Utah's San Rafael Energy Lab, recently achieved "criticality," a major milestone in nuclear development where a reactor sustains a controlled nuclear chain reaction. As of the Wednesday demonstration, the reactor was generating 100 kilowatts of electricity, with plans to scale up over the coming years.

"Our architecture reactor that we've built here operates at higher temperatures which does not make water cooling necessary. On NVIDIA's side, they've worked out an architecture for their cooling systems which operates at higher temperatures as well, once again allowing for air cooling and a closed-loop system," said Isaiah Taylor, founder of Valar Atomics.

Isaiah Taylor, Founder, Valar Atomics

Why Does Utah Care About Waterless Data Centers?

Utah has become a focal point for data center development, driven by Governor Spencer Cox's "Operation Gigawatt" initiative to expand energy production and meet growing AI computing demands. However, the state has also faced significant public backlash over water usage concerns, particularly regarding celebrity investor Kevin O'Leary's proposed "Stratos Project" data center in Box Elder County, which sparked protests over potential impacts to the Great Salt Lake.

The waterless approach addresses these environmental concerns directly. Emy Lesofski, director of Utah's Office of Energy Development, expressed cautious optimism about the technology's potential, noting that skeptics had doubted whether nuclear power and AI computing could work together effectively in the state.

How to Understand the Strategic Importance of This Partnership

• National AI Competitiveness: The project aligns with U.S. strategic priorities to maintain leadership in artificial intelligence development without compromising local resources or environmental quality.
• Energy Security: Small modular reactors provide localized, reliable power generation for energy-intensive AI computing facilities, reducing dependence on traditional power grids.
• Community Benefits: Local officials highlight job creation and tax revenue generation as significant advantages, with Valar Atomics hiring local workers and contributing to the regional economy.

NVIDIA announced plans for a future AI factory in Emery County, though no timeline has been set. The announcement generated significant enthusiasm from the crowd at the demonstration event.

"We believe that this is the way forward. We know that the United States needs to be competitive in artificial intelligence. AI factories and scaling it out is a national strategic priority for the United States. But we need to do it without taxing local communities of water and power and that's exactly what we're proving today," stated Isaiah Taylor.

Isaiah Taylor, Founder, Valar Atomics

Valar Atomics achieved its criticality milestone ahead of President Trump's July 4 deadline for nuclear power pilot projects under Operation Gigawatt, making it the first working reactor among companies developing nuclear projects across Utah.

Community leaders have expressed strong support for the project. Emery County Commissioner Jordan Leonard noted the benefits to the local area, while Representative Carl Albrecht, who sponsored legislation enabling nuclear power development in Utah, framed the initiative as a way to preserve water resources for northern regions while building economic opportunity in rural areas.

The partnership between Valar Atomics and NVIDIA represents a significant test case for whether nuclear power and advanced cooling technologies can solve the environmental challenges posed by AI computing expansion. As data centers continue to proliferate to support artificial intelligence applications, the success or failure of this waterless model could influence how future facilities are designed and where they are located across the United States.