Newcleo, a three-year-old Paris-based nuclear startup, is positioning itself at the intersection of nuclear energy and artificial intelligence by developing small modular reactors (SMRs) specifically designed to power energy-intensive AI data centers. The company’s innovative approach uses molten lead as a coolant instead of traditional water and uniquely repurposes spent plutonium and uranium radioactive waste as fuel, addressing both energy demands and nuclear waste concerns.
Founded in 2021, Newcleo has already raised over $560 million toward its ambitious €1 billion ($1.04 billion) fundraising goal from investors including Pi Campus, Tosto Group, and Viaro Energy. The startup aims to develop its first prototype by 2026 and operate its first reactor by 2031. Despite currently operating at a loss, Newcleo generated approximately $55 million in revenue earlier this year through its three subsidiaries.
The company’s growth strategy directly capitalizes on Big Tech’s pivot to nuclear energy to power AI infrastructure. Tech giants like Google, Amazon, and Microsoft have been actively pursuing nuclear solutions, with Microsoft notably announcing a deal to restart Three Mile Island in September to support its AI operations. Elisabeth Rizzotti, Newcleo’s cofounder and COO, told Business Insider that the startup has received strong interest from the AI sector alongside other industrial partners.
Newcleo’s SMRs offer localized, transportable nuclear power that can be factory-built and deployed at industrial sites, making them particularly attractive for AI data centers requiring substantial, reliable energy sources. The company competes with other SMR developers including NuScale, X-Energy, and Rolls-Royce in this emerging market.
In September 2024, Newcleo relocated its headquarters from the UK to Paris to be closer to French government regulators and support licensing applications. This strategic move helped secure the company’s selection for the European Industrial Alliance on Small Modular Reactors, an initiative accelerating SMR deployment across Europe. Rizzotti indicated that achieving pre-authorization to build its first reactor in France by early 2027 would position the company for a potential IPO, offering investors shares in what she described as “a tangible asset” in the growing nuclear-AI energy ecosystem.
Key Quotes
We’re using and reducing what is considered to be a liability and a strong concern for all the governments who have so many deposits of nuclear waste. So we also promised to reduce them. And this is a story that really excites people.
Elisabeth Rizzotti, Newcleo’s cofounder and COO, explained the company’s unique value proposition of converting nuclear waste into fuel, addressing both energy needs and environmental concerns that resonate with governments and investors alike.
One of our most relevant business models is supporting the industrial sector, in providing them energy locally. The small models are easily transportable because they’re flexible, and you can build them in the factory, so it’s very feasible — so there is strong interest from the AI sector, but also wider commercial partners.
Rizzotti outlined Newcleo’s business strategy, emphasizing the localized, flexible nature of SMRs that makes them particularly attractive to AI companies needing on-site power for data centers.
At a European level, energy independence is something that we need to consider. It is very important to have a partnership between the public and private, because public investment will reassure private investors.
Rizzotti highlighted the geopolitical dimension of Newcleo’s strategy, positioning nuclear energy as essential for European energy independence while emphasizing the need for public-private partnerships to de-risk investments.
Once we obtain these two milestones, in our opinion, we could be ready to go public. Otherwise, we will continue to raise money through more natural channels like private equity or venture capital.
Rizzotti discussed Newcleo’s IPO timeline, tying it to achieving their 2026 prototype and 2027 pre-authorization milestones, signaling confidence in the company’s commercialization path.
Our Take
Newcleo’s emergence represents a paradigm shift in AI infrastructure planning. The AI industry’s energy crisis has moved from theoretical concern to immediate bottleneck, forcing unprecedented partnerships between tech and nuclear sectors. What’s particularly noteworthy is the dual-use innovation—solving nuclear waste problems while powering AI represents the kind of systems-level thinking the climate crisis demands. However, the 2031 timeline for first operations raises questions about whether SMRs can arrive fast enough to meet AI’s exponential growth. The company’s reliance on public-private partnerships and regulatory approvals also introduces political risk. Still, with over half a billion raised and Big Tech’s commitment evident, Newcleo is well-positioned to become a critical infrastructure provider for the AI age. The real test will be execution—delivering safe, cost-effective reactors on schedule in an industry historically plagued by delays and cost overruns.
Why This Matters
This development highlights a critical infrastructure challenge facing the AI industry: the massive energy requirements of AI data centers. As artificial intelligence models grow more sophisticated and computationally intensive, traditional power sources struggle to meet demand sustainably. Newcleo’s approach represents a convergence of nuclear innovation and AI infrastructure needs, potentially solving two problems simultaneously—providing clean, abundant energy for AI while reducing nuclear waste stockpiles.
The involvement of tech giants like Microsoft, Google, and Amazon in nuclear energy signals that AI’s power consumption has reached a tipping point requiring radical solutions. This trend could reshape energy policy, accelerate nuclear renaissance, and influence how AI companies build future infrastructure. For the broader AI ecosystem, reliable nuclear power could enable more ambitious AI projects without carbon concerns, while potentially reducing operational costs long-term. The race to develop SMRs also reflects geopolitical dimensions, with Europe seeking energy independence—a factor that could determine which regions lead in AI development based on energy availability and sustainability.
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Source: https://www.businessinsider.com/newcleo-coo-nuclear-startup-europe-small-modular-reactor-ipo-2024-12