Aalo Atomics has partnered with Microsoft to apply generative AI to its permitting processes, aiming to speed the licensing and deployment of its advanced nuclear reactor.

According to the companies, the partnership will leverage Microsoft’s Generative AI for Energy Permitting Solution Accelerator and AI agents to streamline complex regulatory and operational workflows.

“Our work with Microsoft shows what’s possible when leading AI meets leading engineering,” said Yasir Arafat, CTO of Aalo Atomics. “We’ve tackled some of the biggest challenges in the nuclear sector – simplifying, accelerating, and transforming how complex energy systems are licensed, built, and operated.”

The project was recognized at Microsoft’s annual Hackathon, winning two awards for impact and technology advancement. The companies claim that the AI platform will integrate design data and risk models into workflows, boosting permitting speed and operational efficiency.

Following the announcement, Aalo plans to expand the platform, creating a digital super-operator to transform how energy systems are designed, approved, and constructed.

“Permitting remains a major bottleneck in nuclear deployments,” said Jon Guidroz, SVP of Commercialization. “AI is helping turn regulatory complexity into actionable intelligence, enabling faster deployment of clean energy.”

The company is developing a small modular reactor (SMR) 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.

In September, the company broke ground on its first experimental extra-modular nuclear reactor, Aalo-X. The test reactor is part of the company’s participation in the US Department of Energy’s Nuclear Reactor Pilot Program.

This followed the successful raising of $100 million as part of a Series B fundraise. 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.

Earlier this year, Equinix unveiled one of the largest deals yet, securing three separate agreements with next-generation reactor developers that could supply as much as 774MW 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.