A bold new proposal from a Texas-based energy developer could see decommissioned nuclear reactors from US Navy warships repurposed to power the surging demand from artificial intelligence data centres. The plan, submitted to the US Department of Energy, comes as the Trump administration pushes to secure massive new energy sources for the AI boom.
The Genesis Mission Proposal
HGP Intelligent Energy LLC has formally applied to redirect two retired naval reactors to a proposed data centre project in Oak Ridge, Tennessee. The application was filed with the DOE's Office of Energy Dominance Financing under the White House's Genesis Mission. According to the proposal, the project would generate between 450 and 520 megawatts of continuous electricity, sufficient to power approximately 360,000 homes.
In theory, this approach represents one of the fastest potential methods to add reliable baseload power to the strained US grid. With new nuclear plants or large natural gas facilities being years away from completion, repurposing existing military hardware offers a novel, if untested, solution. Repurposing military reactors for such civilian use, however, is uncharted territory.
Reactors and Economics
The reactors in question are the powerful units that propel the US Navy's most formidable vessels. Naval aircraft carriers and submarines are each equipped with two reactors: A4W units manufactured by Westinghouse Electric Co. or S8G-class units built by General Electric.
The economic argument is compelling. HGP estimates that rewiring two of these reactors would cost between US$1 million and US$4 million per megawatt. This is a fraction of the cost of constructing an entirely new reactor facility. The company's proposal includes a revenue-sharing agreement with the US government and the creation of a dedicated decommissioning fund for the eventual end of the reactors' lifecycle.
Funding and Timeline
The developer plans to seek a loan guarantee from the Department of Energy to support the project. According to documents reviewed by Bloomberg News, the initiative would require US$1.8 billion to US$2.1 billion in private capital. This investment would cover the extensive infrastructure needed to adapt the naval reactors for civilian grid use.
If approved and financed, the first phase of this groundbreaking project could be operational as soon as 2029. HGP's chief executive, Gregory Forero, expressed confidence in the plan, stating, "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."
This proposal highlights the extreme measures being considered to feed the unprecedented energy appetite of the artificial intelligence sector, potentially turning tools of national defence into engines of technological and economic growth.
