Crusoe, the vertically integrated AI infrastructure provider, and Aalo Atomics, a builder of fully modular nuclear reactors, have announced a strategic partnership aimed at developing and deploying the first nuclear-powered AI Factory data center.

The companies announced the agreement on July 30, 2026, with plans that stretch from an initial proof-of-concept in 2027 through a broader commercial deployment by the end of 2029.

A Partnership Rooted in Energy Innovation

The partnership brings together two companies operating at the intersection of artificial intelligence infrastructure and advanced energy technology.

Crusoe describes itself as the industry's first vertically integrated AI infrastructure provider, while Aalo Atomics, founded in 2023 and based in Austin, Texas, is focused on building what it calls fully modular nuclear reactors, designated as XMRs, to power modern AI data centers.

Cully Cavness, Co-Founder, President and Chief Strategy Officer at Crusoe, framed the deal around both infrastructure needs and the company's stated values.

"The next generation of AI infrastructure demands power that is reliable, abundant, clean and at scale, and Aalo's nuclear reactors are built to meet that need," Cavness said.

He added that one of Crusoe's core values is to "bend the arc of energy toward sustainability," and that the company embraces using its market position to support and accelerate energy innovation.

Proof of Concept at Idaho National Laboratory

The first phase of the partnership is set to begin in 2027. Aalo will initially power a Crusoe Spark modular data center running Crusoe Cloud at Idaho National Laboratory, serving as a proof of concept to validate nuclear power's effectiveness with AI workloads.

Aalo has already begun work on a second nuclear reactor located adjacent to its Aalo-X test reactor at Idaho National Laboratory.

That second reactor is being designed to test a commercial-scale system that will produce electricity and power for an on-site Crusoe Spark modular data center.

The companies stated that the initial deployment is intended to jointly demonstrate to the industry the first AI data center powered by a small modular nuclear reactor.

Commercial Deployment Targeted for 2029

Looking beyond the proof-of-concept phase, the two companies intend to deploy Aalo Pods and Aalo's 50 megawatt-electric XMR power plants at Crusoe data centers by the end of 2029.

The stated goal is to scale the nuclear-powered AI factory concept from a single test installation into a broader commercial infrastructure footprint.

Aalo's Criticality Milestone and Reactor Achievements

The announcement coincides with a significant technical milestone for Aalo Atomics. The company described itself as one of only four companies to reach criticality by President Trump's deadline for companies participating in the Department of Energy's Reactor Pilot Program.

Reaching criticality is a foundational step in nuclear reactor development, indicating that a sustained nuclear chain reaction has been achieved.

Matt Loszak, CEO of Aalo Atomics, said the milestone positions the company well for both full power operation of its 10 megawatt-electric Aalo-X reactor and for the eventual deployment of the Aalo Pod to power commercial data centers.

"We are now the only nuclear technology company to design and build a nuclear reactor fueled to produce 10MW of electricity, an achievement that positions Aalo as the premier power provider for the modern data center," Loszak said.

Aalo's Funding and Investor Base

Aalo Atomics has secured over USD 136 million in funding to date from a range of investors. The company's backers include Valor Equity Partners, 50Y, Fine Structure Ventures, Hitachi Ventures, NRG Energy, Vamos Ventures, Tishman Speyer, Kindred Ventures, Harpoon Ventures, Crescent Enterprises, Crosscut, Alumni Ventures, MCJ, Gaingels, and Nucleation Capital, among others.

Broader Context for Crusoe's Infrastructure Strategy

The Aalo partnership is the latest in a series of infrastructure announcements by Crusoe. Crusoe also announced a partnership with ON.energy to deploy five gigawatts of AI UPS systems at multiple hyperscale campuses on July 21, 2026, and on July 15, 2026, Crusoe and Lancium announced a one-gigawatt AI data center campus in Childress, Texas.

The nuclear partnership with Aalo Atomics represents a distinct strategic thread within that broader activity, specifically targeting the challenge of supplying large-scale, reliable, and clean energy to power the compute-intensive workloads associated with artificial intelligence.

Both companies characterized the partnership as a demonstration of American leadership in AI and energy, language that ties the commercial initiative to the broader national policy environment surrounding domestic energy production and AI competitiveness.