Blykalla Secures $50M to Fuel SMR Push for Data Centers

Swedish Nuclear Startup Blykalla AB Secures $50 Million in Capital

Swedish nuclear startup Blykalla AB has secured $50 million in fresh capital to advance its small modular reactor (SMR) project, a development aimed at addressing the growing energy demands in data centers and industrial sectors according to Bloomberg. The funding round was co-led by U.S. peer Oklo Inc., Sweden's Norrsken Launcher, and Armada Investment AG. Blykalla emphasized that the investment will accelerate its design and engineering efforts toward its first nuclear unit and support its collaboration with German energy giant Uniper SE as reported.

The surge in demand for energy is driven by increasing electrification across industries and the rapid growth of artificial-intelligence applications, which require vast amounts of power for data centers. Blykalla is developing a lead-cooled reactor and has already initiated a test unit in southeast Sweden. The company is also exploring a partnership with Evroc AB and Studsvik AB to build Sweden's first nuclear-powered data center according to Bloomberg.

This development follows a challenging period for AI-driven power infrastructure, highlighted by the recent cancellation of a major data center project by Fermi Inc. The Texas-based company, which had partnered with Amazon.com Inc., saw its stock fall 46% after the tech giant withdrew its funding for a $150 million West Texas AI campus as reported. The incident has raised concerns about whether AI developers can secure tenants and funding for their massive power needs, adding to broader market skepticism around the AI energy boom according to Bloomberg.

A Growing Market for Nuclear Energy

Blykalla is not the only startup making strides in the nuclear energy sector. Radiant Industries Inc., a California-based firm, recently raised $300 million in a Series D round led by Draper Associates and Boost VC. The funding values the company at over $1.8 billion and will support the commercialization of its 1-megawatt microreactor, designed to power U.S. military bases and data centers according to Bloomberg. The company plans to test its reactor at Idaho National Laboratory and build a production facility in Tennessee to scale deployment as reported.

Meanwhile, Natura Resources LLC has partnered with the U.S. Department of Energy (DOE) under an Other Transaction Agreement (OTA) to advance its molten salt reactor (MSR-1) toward criticality. The project is part of the DOE's Reactor Pilot Program, which aims to bring three reactors online by July 4, 2026. The reactor will be deployed at Abilene Christian University and will use High-Assay Low-Enriched Uranium (HALEU) supplied by the federal agency according to PR Newswire. This collaboration highlights the growing support from government agencies for advanced nuclear technologies as reported.

Strategic Moves in the Data Center Sector

Startups and traditional energy firms are increasingly aligning their nuclear projects with data center operators to secure stable demand. Hut 8 Corp., a Canadian digital infrastructure firm, announced a major partnership with AI-focused companies Anthropic and Fluidstack to build a high-capacity data center campus in the United States. The agreement includes four data halls with a total capacity of 245 megawatts and aims to meet the rising computational needs of AI applications according to Seeking Alpha. The project reflects the growing interest in collocating nuclear energy with data infrastructure to ensure reliable and sustainable power supply as reported.

In contrast, Nukkleus Inc., another nuclear industry player, has taken a strategic step by acquiring Star 26 Capital Inc. The move, approved by shareholders, aims to expand Nukkleus' capabilities in defense industrial strategy and dual-use innovation. The company emphasized its long-term vision to integrate operational and financial strengths to support resilient supply chains and modernization efforts according to Global Newswire. This acquisition could position Nukkleus as a key player in defense-related nuclear applications as reported.

The Road Ahead for Nuclear Energy

The recent developments in the nuclear sector signal a shift toward smaller, modular reactors that can be deployed more quickly and at lower costs. These reactors are seen as a viable solution for meeting the surging power demands driven by AI and data center growth. However, the success of these projects depends on securing long-term partnerships with energy users and navigating regulatory hurdles. Companies like Blykalla and Radiant are working closely with regulators and industry partners to accelerate licensing and deployment according to Bloomberg.

Investors are closely watching how these startups perform in the coming months, especially as the market for AI-driven infrastructure remains volatile. The cancellation of Fermi's project with Amazon has raised concerns about the sustainability of large-scale investments in the sector. Yet, the continued influx of capital into nuclear startups suggests that the demand for reliable, carbon-free energy remains strong, particularly in regions where grid capacity is limited according to Bloomberg.