Dallas, Texas, January 1, 2026
HGP Intelligent Energy LLC is set to revolutionize the energy sector by repurposing retired U.S. Navy nuclear reactors for an AI data center in Tennessee. The initiative aims to provide 450 to 520 megawatts of continuous electricity, addressing the growing power demands of AI technologies. The project, estimated to cost around $2 billion, seeks support from the U.S. Department of Energy to secure loan guarantees, showcasing nuclear energy’s role in sustainable tech infrastructure and economic growth.
Dallas, Texas – HGP Intelligent Energy LLC is making waves in the energy sector with a groundbreaking proposal to repurpose two retired U.S. Navy nuclear reactors for an artificial intelligence (AI) data center located at Oak Ridge National Laboratory in Tennessee. This innovative initiative aims to deliver between 450 and 520 megawatts of continuous electricity, which is increasingly crucial to meet the skyrocketing energy needs of AI technologies.
With private sector investments surging, the proposed project is expected to incur costs between $1 million and $4 million per megawatt, totaling approximately $2 billion in capital. To bolster this ambitious endeavor, HGP Intelligent Energy plans to seek a loan guarantee from the U.S. Department of Energy. This multifaceted approach not only represents entrepreneurial innovation but also illustrates the potential of nuclear energy as an essential component in the future of tech infrastructure.
The motivations behind this initiative align with ongoing efforts nationwide to explore sustainable energy solutions. Recent contracts and partnerships, including those with Crusoe and Blue Energy, are illustrative of a larger trend towards integrating nuclear power with data centers, again driven by the demand for compute capabilities essential for AI.
Following a National Trend
The need for reliable power sources grows as the demand for data processing increases with advancements in AI technologies. In October 2025, Crusoe and Blue Energy announced a partnership dedicated to developing a nuclear-capable AI data center campus in Texas that targets a capacity of up to 1.5 gigawatts. Similarly, in June of the same year, Texas Tech University System and Fermi America unveiled plans for an advanced energy and AI campus near Amarillo, Texas, which is expected to generate a whopping 11 gigawatts of power.
These projects are reflective of a broader trend within the U.S. energy landscape. The quest for high-capacity, reliable energy sources illuminates the crucial intersection between technology and energy production, where nuclear capability is increasingly recognized for its reliability and low emissions. The strategic repurposing of existing resources, such as retired Navy reactors, underscores a pragmatic approach to power generation that minimizes waste and reduces the carbon footprint.
A Sustainable Future
The discussions around HGP Intelligent Energy’s initiative and similar projects emphasize the adaptability of nuclear energy in addressing modern energy demands. By repurposing existing structures, the project not only aims to provide a necessary power supply for state-of-the-art AI data centers but also seeks to pave the way for future technological advancements. Innovations such as these could enhance business efficiency while promoting sustainability.
The appeal of moving towards nuclear power for AI operations rests on its efficiency and reliability. Many believe reduced regulatory red tape could significantly accelerate such initiatives. A balanced regulatory approach would create an environment conducive to innovation while ensuring public safety and environmental protections are upheld.
The Economic Implications
HGP Intelligent Energy’s proposal holds exciting possibilities not only for Texas but for the broader U.S. economy. By investing in innovative technologies and energy solutions, there’s potential for new job creation in engineering, construction, and operational roles. Furthermore, this initiative may serve as an example of how private investment can drive technological advancements, thereby providing a model for future applications across various sectors.
Supporters argue that fostering an entrepreneurial spirit backed by practical government support can accelerate economic growth. Streamlined processes allow for quicker implementation of projects like this, which can in turn result in demonstrable impacts on both state and national economies.
Conclusion
The proposal by HGP Intelligent Energy to repurpose retired U.S. Navy nuclear reactors signifies a promising direction in meeting the energy demands of AI and emphasizes the importance of harnessing advanced technologies in tandem with sustainable energy practices. This initiative not only positions Dallas at the forefront of innovation but also highlights the potential benefits of nuclear energy for future infrastructure projects.
As interest in these kinds of projects accelerates, staying engaged with local economic developments becomes essential. Encouraging local investments and supporting small businesses can help ensure that Dallas continues to thrive as a hub of economic growth and entrepreneurial success.
FAQ
- What is HGP Intelligent Energy’s proposal?
- HGP Intelligent Energy LLC has proposed repurposing two retired U.S. Navy nuclear reactors to supply power for an AI data center at Oak Ridge National Laboratory in Tennessee, aiming to provide between 450 and 520 megawatts of continuous electricity.
- How much is the project estimated to cost?
- The project is estimated to cost between $1 million and $4 million per megawatt, totaling approximately $2 billion in private capital.
- What is the company’s plan to support the initiative?
- HGP Intelligent Energy plans to seek a loan guarantee from the U.S. Department of Energy to support the initiative.
- What are other similar projects in the U.S.?
- In October 2025, Crusoe and Blue Energy announced a partnership to develop a nuclear-capable AI data center campus in Texas, targeting up to 1.5 gigawatts of capacity. In June 2025, the Texas Tech University System and Fermi America unveiled plans for an advanced energy and AI campus near Amarillo, Texas, capable of generating up to 11 gigawatts of power.
- Why is nuclear energy being considered for AI data centers?
- Repurposing existing nuclear reactors aims to provide a reliable and efficient energy source for data centers, which are essential for AI operations, addressing the escalating power needs of AI infrastructure.
| Feature | Details |
|---|---|
| Proposal | Repurpose two retired U.S. Navy nuclear reactors to power an AI data center at Oak Ridge National Laboratory in Tennessee, providing 450–520 megawatts of continuous electricity. |
| Estimated Cost | Approximately $2 billion in private capital, with costs ranging from $1 million to $4 million per megawatt. |
| Funding Plan | Seek a loan guarantee from the U.S. Department of Energy to support the initiative. |
| Similar Projects | Crusoe and Blue Energy’s partnership for a nuclear-capable AI data center campus in Texas (1.5 gigawatts capacity) and Texas Tech University System and Fermi America’s advanced energy and AI campus near Amarillo, Texas (up to 11 gigawatts capacity). |
| Rationale | Address the escalating power needs of AI infrastructure by providing a reliable and efficient energy source for data centers through repurposed nuclear reactors. |
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