Nano and Blockfusion hope to use nuclear microreactors at data center

A cryptomining company is exploring the potential of deploying a micro nuclear reactor at its data center in New York

Nano Nuclear Energy Inc. this week announced it has signed a memorandum of understanding (MoU) with Blockfusion Ventures, an affiliate of cryptomine firm Blockfusion USA, Inc., to use nuclear energy to power its data centers.

Under the MoU, Nano Nuclear will explore the potential integration of its microreactor technologies with Blockfusion’s data center in Niagara Falls, New York (pictured).

“The groundbreaking microreactor technology Nano Nuclear is developing has the potential to revolutionize the way data centers are powered, ensuring a sustainable future while meeting the very large and ever-growing energy demands of data center and artificial intelligence sectors,” said Alex Martini, CEO of Blockfusion.

Blockfusion’s facility has undergone a $25 million conversion from a decommissioned coal power plant to a data center powered by hydroelectric energy from Niagara Falls. The site currently offers 50MW of capacity, according to the company’s website.

Nasdaq-listed Nano is developing portable nuclear microreactors – the company was founded in New York in 2021 and went public earlier this year. Its Zeus solid-core battery microreactor, designed to fit within the dimensions of a 45-foot high-cube container, features a power conversion unit capable of generating one to two MW of electricity without the need for a fluid coolant.

It is also developing Odin, a low-pressure coolant reactor.

Short seller Hunterbrook Capital has previously criticized Nano Nuclear for having “no revenue, no products, ‘laughable timelines,’ [and] part-time executives.” It said that it had taken a short position against Nano.

“We have long considered data centers focused on AI, quantum computing and crypto mining as an ideal potential customer for our micro nuclear reactors in development, and this MoU provides an excellent opportunity to explore the real-world demands our microreactors can meet for this important sector,” said Jay Yu, founder and chairman of Nano Nuclear.

Nano Nuclear has been tasked with exploring its potential to supplement the Blockfusion data center’s energy demands during off-peak hours or times of disruption.

“We are delighted that Blockfusion has chosen us to help research and to meet their energy demands with our next-generation, cutting-edge microreactor solutions,” added James Walker, CEO and head of reactor development of Nano Nuclear Energy. “The ability to meet remote energy demands like Blockfusion’s with minimal environmental impact and high reliability was the driving force behind the inception of Nano Nuclear.”

Small nuclear reactors have been proposed as a potential source of low-carbon energy for data centers which could effectively allow facilities to operate independently from the local grid.

Questions still remain, however, whether such reactors will be deployed directly at data center campuses in behind-the-meter deployments or located elsewhere and connected to the grid.