Addressing the ongoing power shortages plaguing AI data centers has led to a renewed interest in nuclear energy. Once seen as a dated solution, nuclear options are being revisited by both established companies and startups. One innovative proposal comes from a Texas power developer, HGP Intelligent Energy LLC, which is suggesting a novel approach: repurposing reactors from decommissioned naval warships.
Bloomberg recently reported that HGP plans to redirect two retired naval reactors, starting with the USS Nimitz, for a data center project in Oak Ridge, Tennessee. This ambitious project aims to produce between 450-520 megawatts of steady power, sufficient for around 360,000 homes or a single large data center. As several Nimitz-class carriers near retirement and are replaced by more modern Gerald R. Ford-class carriers, the opportunity to utilize their reactors arises.
While remaking the reactors is projected to cost between $1 million and $4 million per megawatt—significantly less than constructing new reactors—there are significant hurdles to overcome. HGP’s plan includes a revenue-sharing model with the government and provisions for a decommissioning fund.
However, experts warn of the challenges that may hinder the project. Kristen Vosmaer from JLL Work Dynamics emphasized that naval reactors use weapons-grade uranium, which civilian entities cannot legally possess, complicating any licensing with the Nuclear Regulatory Commission. Furthermore, these military-designed reactors would need extensive reconstruction to meet civilian safety standards, potentially negating the initial cost benefits.
Alternatively, Vosmaer pointed out that floating natural gas turbine barges might present a more practical solution. These systems are compliant with existing regulations and can be deployed within 12 to 24 months, in contrast to the uncertain timeline associated with nuclear power.
Thus, while the idea of utilizing naval reactors could address the power crunch for data centers, substantial regulatory, safety, and logistical challenges must be addressed before this strategy could become a reality.
