Austin-based microreactor developer Aalo Atomics has broken ground on its first experimental extra-modular nuclear reactor, Aalo-X.

The company, which was recently selected as one of 11 projects to receive support under the US Department of Energy’s (DOE) Nuclear Reactor Pilot Program, has targeted the data center sector as a crucial offtaker for its microreactor.

The company plans to complete construction and achieve criticality on the reactor by July 4, 2026.

“Our selection for the Nuclear Reactor Pilot Program is a significant catalyst for achieving our goal of going from ‘founding to fission’ in less than three years – a feat many deemed impossible just a year ago,” said Matt Loszak, co-founder and CEO, Aalo Atomics.

As part of the program, the DOE will support the projects to construct, operate, and achieve criticality of at least three test reactors using the DOE authorization process by July 4, 2026.

The reactor is being manufactured at Aalo’s 40,000 sq ft (3,716 sqm) pilot factory in Austin, Texas, before being transported to and installed at the Idaho National Laboratory (INL).

The Aalo-X reactor is a precursor to the company’s flagship offering, dubbed the Aalo pod. The 50MW microreactor is comprised of five 10MWe reactors driving a single turbine. It is sodium and air-cooled, meaning it requires no external water source.

As part of its experimental plant development, the company plans to construct a colocated data center adjacent to the reactor to demonstrate proof of concept within the sector. While plans for the data center have yet to be revealed, DCD understands that Aalo sees colocation as a key part of its model.

The company ultimately aims to achieve a price point of three cents per kWh, which would align with the cost of building a new natural gas or solar plant. However, Aalo has yet to disclose when it expects to reach this price point.

The groundbreaking closely follows the successful raise of $100 million as part of a Series B fundraise. Following the funding round, the firm has now raised more than $136m.

Aalo is one of several advanced nuclear firms that are seeking to tap into the data center market. Last month, Equinix unveiled one of the largest deals yet, securing three separate agreements with next-generation reactor developers that could supply as much as 774 megawatts of electricity. Over the past year, other tech and cloud giants, including Amazon, Google, Data4, Oracle, Switch, and Endeavour, have also struck deals with advanced nuclear companies.