Nuclear reactor developer X-energy said on Monday it had closed a US$700 million financing round led by trading company Jane Street to help expand its supply chain and commercial pipeline.
WHY IT’S IMPORTANT
The U.S. nuclear industry is undergoing a renaissance after years of stagnation, primarily driven by surging power demand from the so-called hyperscalers that operate massive cloud-computing infrastructure to manage rising AI processing.
X-energy is one of several companies that have signed deals with big tech companies as AI boosts U.S. power demand for the first time in decades.
Earlier this year, Amazon.com anchored a funding round in which X-energy raised $700 million to help finish reactor design and licensing as well as construction of a fuel-making facility.
CONTEXT
Small modular reactors are more compact and cost-effective compared to full-sized reactors that often take decades to build.
X-energy is developing an advanced small modular reactor as well as a specialized type of advanced nuclear fuel and is working on projects with Dow, Amazon, and Centrica.
BY THE NUMBERS
X-energy said it expects to utilize proceeds from the round to help support its order book of more than 11 gigawatts, representing 144 advanced small modular reactors (SMR).
The firm added that the funding round included new investors ARK Invest, Galvanize, Hood River Capital Management, Point72, Reaves Asset Management and XTX Ventures.
It also included existing investors Ares Management funds, Corner Capital, Emerson Collective, NGP and Segra Capital Management.
(Reporting by Dharna Bafna in Bengaluru; Editing by Shreya Biswas)