Nuclear Innovator Suggests Utilizing Naval Reactors for Data Center Operations

A Texas power developer is making headlines with an innovative proposal to repurpose retired nuclear reactors from Navy warships to bolster the US energy grid. This initiative comes as the Trump administration seeks to secure substantial energy resources to support the burgeoning artificial intelligence sector.

HGP Intelligent Energy LLC has submitted an application to the Energy Department, aiming to redirect two decommissioned reactors for a data center project in Oak Ridge, Tennessee. According to a letter sent to the agency’s Office of Energy Dominance Financing, the project, part of the White House’s Genesis Mission, is expected to generate approximately 450-520 megawatts of continuous electricity—sufficient to power around 360,000 homes.

This approach could represent one of the quickest methods to enhance baseload power on the grid, especially as the US grapples with escalating electricity demands. The construction of new reactors, whether traditional large plants or next-generation smaller units, is still years away, as is the development of new large natural gas-fired plants. However, repurposing military reactors for civilian applications is a relatively unexplored avenue.

Each US aircraft carrier and submarine is equipped with two reactors: either the A4W units manufactured by Westinghouse Electric Co. or the S8G-class units produced by General Electric. The estimated cost to rewire two of these reactors ranges from $1 million to $4 million per megawatt, significantly less than the expense of constructing new reactors. HGP’s proposal also includes a revenue-sharing model with the government and the establishment of a decommissioning fund.

To finance this ambitious project, the developer plans to apply for a loan guarantee from the Energy Department. The total investment required is projected to be between $1.8 billion and $2.1 billion, aimed at building the necessary infrastructure to adapt the reactors for general use. According to the proposal reviewed by Bloomberg News, the initial phase could be completed as early as 2029.

“We already know how to do this safely and at scale, and we’re fortunate to have a solid base of investors and partners who share that vision,” stated HGP Chief Executive Officer Gregory Forero.

Copyright 2025 Bloomberg.

A Texas power developer is making headlines with an innovative proposal to repurpose retired nuclear reactors from Navy warships to bolster the US energy grid. This initiative comes as the Trump administration seeks to secure substantial energy resources to support the burgeoning artificial intelligence sector.

HGP Intelligent Energy LLC has submitted an application to the Energy Department, aiming to redirect two decommissioned reactors for a data center project in Oak Ridge, Tennessee. According to a letter sent to the agency’s Office of Energy Dominance Financing, the project, part of the White House’s Genesis Mission, is expected to generate approximately 450-520 megawatts of continuous electricity—sufficient to power around 360,000 homes.

This approach could represent one of the quickest methods to enhance baseload power on the grid, especially as the US grapples with escalating electricity demands. The construction of new reactors, whether traditional large plants or next-generation smaller units, is still years away, as is the development of new large natural gas-fired plants. However, repurposing military reactors for civilian applications is a relatively unexplored avenue.

Each US aircraft carrier and submarine is equipped with two reactors: either the A4W units manufactured by Westinghouse Electric Co. or the S8G-class units produced by General Electric. The estimated cost to rewire two of these reactors ranges from $1 million to $4 million per megawatt, significantly less than the expense of constructing new reactors. HGP’s proposal also includes a revenue-sharing model with the government and the establishment of a decommissioning fund.

To finance this ambitious project, the developer plans to apply for a loan guarantee from the Energy Department. The total investment required is projected to be between $1.8 billion and $2.1 billion, aimed at building the necessary infrastructure to adapt the reactors for general use. According to the proposal reviewed by Bloomberg News, the initial phase could be completed as early as 2029.

“We already know how to do this safely and at scale, and we’re fortunate to have a solid base of investors and partners who share that vision,” stated HGP Chief Executive Officer Gregory Forero.

Copyright 2025 Bloomberg.