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HGP proposes repurposing Navy nuclear reactors for Oak Ridge data center power
Friday, January 2, 2026 at 04:17 PM
A Texas-based developer, HGP, is proposing the use of decommissioned Navy nuclear reactors to power a new data center in Oak Ridge. The project targets a capacity of 450-520MW by 2029 with an estimated infrastructure cost between $1.8 billion and $2.1 billion. The proposal aims to leverage Westinghouse A4W or GE S8G reactors to secure baseload power more quickly than traditional new-build nuclear or gas plants, though it faces an unproven regulatory path.
Context
Texas-based developer HGP has proposed a novel solution to the escalating energy demands of the AI sector by repurposing decommissioned Navy nuclear reactors for a data center in Oak Ridge. The initiative focuses on utilizing dual A4W or GE-manufactured S8G reactors to generate consistent baseload power. This ambitious project aims to deliver a capacity of 450-520MW by 2029, potentially addressing the power shortage facing high-performance computing centers much faster than traditional new-build nuclear or natural gas facilities.
The financial framework requires an estimated $1.8 billion to $2.1 billion in infrastructure capital, supported by a requested DOE loan guarantee. At a cost of $1 million to $4 million per MW, the repurposing strategy is significantly more cost-effective than conventional new nuclear construction. Although the regulatory path for civilian use of military hardware remains unproven, successful implementation would provide a critical, scalable energy solution for the power-hungry semiconductor and AI infrastructure landscape.
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