Last Energy Secures $100 Million to Power AI Data Centers

Austin-based Last Energy has successfully secured $100 million in Series C funding, a significant investment aimed at advancing its efforts to develop small modular nuclear reactors (SMRs). The funding round was led by the Astera Institute and included participation from several notable investors such as AE Ventures, Galaxy Fund, Gigafund, JAM Fund, and Woori Technology. This influx of capital underscores the increasing interest in nuclear energy solutions, particularly as demand surges from data centers and advanced computing infrastructures.

The investment will support Last Energy in commercializing its innovative reactor technology, which seeks to address the rising power needs associated with artificial intelligence systems. Founded in 2019 by Bret Kugelmass, who previously established the Energy Impact Center, Last Energy aims to develop scalable, small modular nuclear reactors that are both efficient and economically viable.

Innovative Reactor Design and Development Plans

Last Energy focuses on creating small modular reactors capable of generating 20 megawatts of electricity. This output is sufficient to power approximately 15,000 homes. Unlike traditional large-scale nuclear power plants, Last Energy’s reactors are designed for repeatable manufacturing, employing standardized processes and components to reduce both costs and construction timelines. The design draws upon proven technology from a pressurized water reactor developed decades ago by the U.S. government for the NS Savannah, the world’s first nuclear-powered merchant ship. By modernizing this design, the company aims to meet contemporary energy demands while maintaining familiarity for regulators and engineers.

To further minimize risks and costs, Last Energy utilizes off-the-shelf components for common systems, avoiding the complexities associated with bespoke supply chains. Before moving to commercial production, the company plans to deploy a 5-megawatt pilot reactor at a site leased from Texas A&M. The funding raised will fully finance this pilot project, which is expected to commence operations in 2024. Last Energy anticipates launching its commercial-scale reactors by 2028.

Safety Features and Environmental Considerations

A distinctive aspect of Last Energy’s reactor design is its sealed construction. Each reactor core is encased in approximately 1,000 tons of steel and is designed to remain unserviced throughout its operational lifespan. This steel enclosure not only provides structural protection but also acts as a shield against radiation, with the material costing around $1 million per unit. The reactors arrive on location pre-fueled with six years’ worth of uranium, and the heat generated within the core is utilized to produce electricity by warming water circulating through external pipes.

The design minimizes complexity with no penetrations other than necessary electrical and control connections. When the reactor reaches the end of its operational life, it remains on-site, with the steel casing serving as a long-term waste container, thus eliminating the need for separate disposal solutions. Last Energy believes that this approach, combined with manufacturing efficiencies, will lead to a consistent reduction in nuclear power costs as production scales up.

In a statement, Bret Kugelmass, Chief Executive Officer of Last Energy, highlighted the significance of the funding, stating, “This financing fully capitalizes our DOE pilot project and positions us to transition swiftly into commercialization of our production power plants.” As global electricity demand continues to rise, particularly from data-heavy infrastructure, Last Energy is positioning itself as a viable solution to meet the increasing energy requirements of the future.