Texas A&M University has announced plans to become a testing ground for small modular reactors (SMRs), aiming to address the state's rapidly increasing electricity demand, largely driven by artificial intelligence data centers. The university is collaborating with four nuclear startups specializing in SMRs, which are approximately one-third the size of traditional nuclear power plants.

The initiative comes as Texas faces significant challenges in meeting its power needs. The state's main grid operator has projected that electricity demand could nearly double by 2030, primarily due to requests from data centers and crypto-mining facilities. This trend mirrors similar situations in other states like Virginia, Arizona, and Nebraska.

The university is seeking $200 million from state legislators to finance the nuclear projects. The proposed site at Texas A&M is large enough to accommodate multiple SMRs with a combined output exceeding one gigawatt, sufficient to power about 200,000 homes.

Proponents argue that SMRs could provide a reliable, 24/7 power source without greenhouse gas emissions, unlike the gas plants currently being built to power data centers. However, critics express concerns about potential cost overruns, delays, and the issue of radioactive waste storage.

The four nuclear startups involved in the project are Kairos Power, Natura Resources, Terrestrial Energy, and Aalo Atomics. Some of these companies have already received construction permits from the Nuclear Regulatory Commission for demonstration SMRs, but not yet for commercial-scale plants.

This development is part of a broader strategy by Texas officials to strengthen the state's power grid following vulnerabilities exposed during a 2021 winter storm. Governor Greg Abbott has outlined a plan to make Texas a leader in advanced nuclear power, including the establishment of a new state office and energy fund dedicated to supporting advanced nuclear projects.

As the race to power AI innovations intensifies, the success of this initiative could have far-reaching implications for the future of energy production and data center operations, potentially offering a model for other regions grappling with similar challenges.