The U.S. military is making a bold move to solve AI's energy crisis by building nuclear reactors small enough to fit on military bases. In August, the Army announced plans to award up to $2.2 billion to five companies to construct new-generation microreactors at military installations across the country, with the goal of deploying at least one operational reactor by the third quarter of 2028. This aggressive timeline represents a dramatic shift in how the nation approaches both nuclear energy and the power demands of artificial intelligence.

Microreactors are a fundamentally different breed of nuclear technology compared to the massive power plants most people imagine. These compact units generate between 1 megawatt and 20 megawatts of thermal energy, making them small enough to be transported by truck, boat, or plane. Unlike conventional nuclear reactors that can take decades to build and cost billions of dollars, microreactors are designed to be manufactured in factories and assembled on-site, dramatically reducing both construction time and capital costs.

What Makes Microreactors Different From Traditional Nuclear Plants?

The key advantages of microreactors lie in their flexibility and speed of deployment. These reactors can operate for up to 10 years without refueling, can be quickly removed from sites and replaced with new ones, and are designed with safety systems to prevent overheating or meltdown. They're also modular, meaning they can be connected to microgrids alongside renewable energy sources, giving military bases and other facilities greater control over their power supply.

The Army's five selected contractors represent a cross-section of the nuclear industry. The companies receiving funding are Antares Nuclear at Fort Bragg in North Carolina; BWX Technologies at Fort Campbell in Kentucky; General Atomics at Fort Hood in Texas; Radiant Industries at Fort Benning in Georgia; and Westinghouse Government Services at Fort Drum in New York. Each company will be expected to raise billions in private investment to support their development efforts, meaning the federal $2.2 billion commitment is just the beginning of total spending on these projects.

"We believe that this will be the spear tip not just for microreactors but for all advanced reactors in the United States. There have been a lot of microreactor companies that have popped up recently, but we need to get them over the hump," stated Jeff Waksman, the principal deputy assistant secretary of the Army for installations, energy and environment.

Jeff Waksman, Principal Deputy Assistant Secretary of the Army for Installations, Energy and Environment

This Army initiative is backed by a presidential mandate. In 2024, President Trump signed Executive Order 14299, which designated the Army as the lead agency for military nuclear energy efforts and set a deadline for an operational reactor at a domestic military installation by September 30, 2028. The order reflects broader administration support for nuclear power as a solution to America's energy challenges, including the massive electricity demands of artificial intelligence infrastructure.

How Microreactors Could Transform AI Infrastructure

• Decentralized Power Supply: Microreactors can be deployed at remote military bases and locations without connection to the main power grid, providing reliable clean energy to AI data centers in places where traditional infrastructure doesn't exist.
• Rapid Deployment: Factory-manufactured units can be transported and installed much faster than conventional reactors, allowing AI facilities to scale their power capacity within months rather than years.
• Flexible Capacity: Multiple microreactors can be connected together to create modular power systems that grow with demand, allowing data centers to add computing capacity without waiting for new power plants to be built.
• Long Operating Periods: With the ability to run for up to 10 years without refueling, microreactors reduce the operational complexity and downtime associated with traditional nuclear maintenance schedules.

The private sector is already moving in parallel with the military effort. In July 2026, Texas-based Aalo announced that its Critical Test Reactor had achieved criticality, the point at which a nuclear reactor sustains a controlled, self-supporting chain reaction. Aalo stated that its reactor went "from groundbreaking to a sustained chain reaction in less than eight months, one of the fastest reactor builds in 80 years." The company is focusing on producing 10-megawatt electric reactors for deployment in 50-megawatt Aalo Pods specifically designed to power AI data centers.

Aalo

The broader context for this push is the Trump administration's ambitious nuclear expansion goals. The administration has voiced support for a wide range of nuclear technologies, from conventional nuclear plants to small modular reactors (SMRs) and microreactors, with the aim of quadruple nuclear power production in the United States by 2050. This represents a significant policy shift, as nuclear energy has been sidelined in recent decades by concerns about waste disposal, construction costs, and public perception.

The Department of Energy is supporting a variety of advanced reactor designs in line with this broader strategy. Federal regulators are also easing restrictions on innovative reactor designs, removing bureaucratic barriers that have historically slowed nuclear development. This combination of federal funding, regulatory support, and private-sector innovation creates an environment where microreactors could move from concept to deployment remarkably quickly.

The timeline is aggressive but not unprecedented. The Army's September 2028 deadline gives the five selected companies roughly two years to complete construction and achieve operational status. While this is extraordinarily fast by nuclear standards, it's worth noting that Aalo's recent achievement suggests that modern manufacturing techniques and simplified designs can accelerate the process significantly. The companies will need to navigate regulatory approval, secure supply chains for specialized components, and train personnel to operate the facilities, but the combination of federal support and private investment appears sufficient to meet the deadline.

For AI companies and data center operators, the implications are substantial. The current energy crisis facing the AI industry stems from the enormous electricity demands of training and running large language models and other machine learning systems. Traditional power infrastructure in many parts of the country cannot support the megawatt-scale demands of modern AI facilities. Microreactors offer a potential solution by providing clean, reliable power at scales that match AI infrastructure needs, without requiring connection to aging grid infrastructure or competing with residential and commercial power users.

The success of the Army's microreactor program could establish a template for broader deployment across the private sector. If the five military installations successfully deploy operational reactors by late 2028, it would demonstrate that microreactors are not merely theoretical but practical, deployable technology. This would likely accelerate private investment in microreactor companies and encourage other technology companies to explore nuclear power as a solution to their energy challenges.

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