Naval Nuclear Reactors Proposed to Power AI Data Centers: A New Energy-Environment Equation

United States | EcoPulse24

In an unprecedented move linking artificial intelligence, energy, and environmental security, US company HGP Intelligent Energy has proposed reusing decommissioned US Navy nuclear reactors to power dedicated AI data centers, responding to the rapidly growing electricity demand across the country.

According to the proposal submitted to the US Department of Energy, the company aims to repurpose two retired nuclear reactors from warships to generate between 450 and 520 megawatts of continuous, stable electricity. This output could supply approximately 360,000 homes or operate massive AI data center complexes.

The project, registered under the Genesis Mission - an initiative supporting AI infrastructure - targets a site in Oak Ridge, Tennessee, a region with a rich history in nuclear research. The company is seeking a government loan guarantee, while the required private investment for infrastructure is estimated at $1.8–2.1 billion. The first phase could be completed by 2029.

Notably, the cost to refurbish these reactors is estimated at $1–4 million per megawatt, significantly lower than building new nuclear reactors. The US currently faces challenges in rapidly expanding gas plants or conventional reactors due to regulatory and time constraints.

This approach comes amid a global AI boom that has led to unprecedented electricity consumption, with data centers now among the largest sources of strain on power grids as reliance on generative AI models and high-performance computing grows.

Environmentally, the project offers a controversial alternative by providing low-carbon baseload power compared to fossil fuel plants. However, it also sparks debate over the use of military nuclear technology for civilian purposes, requiring strict regulatory frameworks and nuclear waste management funds. The company stated these are included in its plan, along with revenue sharing with the US government.

Analytical View | EcoPulse24

This proposal reflects a profound shift in US strategic thinking, where the challenge is no longer just developing AI, but securing clean, stable, and scalable energy to support it. Combining nuclear energy and AI could be one of the few solutions capable of meeting surging demand without increasing emissions. However, it raises sensitive issues regarding safety, regulation, and public acceptance. If approved, the project could mark a turning point in the relationship between technology, energy, and the environment in the coming decade.