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BFD Expert Voices - Climate Deals

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Global VC Investment in Next-Gen Nuclear Fission

Venture capital investments in advanced nuclear fission bounced back this year, rivaling the peak investing year of 2022.

Why it matters: Interest in next-gen nuclear has jumped this year partly spurred by Big Tech's desire for carbon-free power to run AI data centers.

Zoom in: This year's total capital invested in advanced nuclear was skewed by the $500 million mega round for X-Energy, which was led by Amazon's climate fund.

Other funding rounds this year backed earlier stage firms like French player Newcleo, Blue Energy, and Aalo Atomics.

Some of the more mature advanced nuclear players are racing closer to commercialization, citing timelines as early as 2028.

GE Hitachi has said its small modular reactor, or SMR, for Ontario Power Generation could finish construction as soon as 2028, which would be the first SMR in North America.

Catch up quick: The idea behind SMRs is that they can be built in factories and delivered to project areas quickly and for a lower cost compared to a traditional large centralized nuclear plant.

Driving the news: On Friday, the CEO of power company Dominion Energy, Bob Blue, said the company is involved in discussions with potential partners, including technology firms, on agreements to build SMRs, similar to the deal it signed with Amazon last month.

Yes, but: Energy regulators are still navigating the recent wave of deals between nuclear plants and data centers, and some worry that the tie-ups could threaten grid reliability and raise utility bills.

Last week, the Federal Energy Regulatory Commission rejected a proposal that would have allowed an Amazon data center to co-locate with an existing nuclear power plant in Pennsylvania.

The bottom line: Big Tech's SMR deals are kickstarting project deployments and also attracting private capital to the sector.

Big Tech drives VC return to advanced nuclear

The funding comes amidst a chillier year for climate tech.

Nuclear power

Venture capital investments in advanced nuclear fission bounced back this year, rivaling the peak investing year of 2022.Why it matters: Interest in next-gen nuclear has jumped this year partly spurred by Big Tech&#x27;s desire for carbon-free power to run AI data centers.

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Big Tech drives VC return to advanced nuclear

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