9.6 GW output: Valar Atomics proposes 456 nuclear reactor-powered data center

Silicon Valley needs energy, and it is looking to turn central eastern Utah into a nuclear-powered computing capital.

Energy startup Valar Atomics has submitted a proposal to construct “Project Beehive,” an ambitious industrial development spanning roughly 9,000 acres of public and state land near Price, Utah.

The core proposal includes 456 small, gas-cooled nuclear reactors that would generate an estimated 9.6 gigawatts of power. That is more than double the entire state’s average energy output. Utah currently generates an average of 4 gigawatts of electricity, with summer peak demand reaching nearly 10 gigawatts.

On September 17, the Utah Trust Lands Administration unanimously approved a lease for 640 acres of state trust land earmarked for the effort. The Bureau of Land Management is reviewing the project. It aims to combine small, gas-cooled nuclear reactors with manufacturing facilities to power a massive AI data center.

However, environmental advocates caution against moving too fast on public land.

Helium-cooled nuclear reactors

Artificial intelligence requires vast computational capacity. Computing power demands electricity.

Project Beehive plans to use helium-cooled nuclear reactors instead of traditional water-cooled designs. This gas-cooling approach lowers water consumption, making it ideal for data infrastructure located in the dry American West. Moreover, the proposed complex is expected to manage both nuclear fuel production and on-site waste storage.

The proposed gas-cooled reactors utilize TRISO (Tristructural Isotropic) fuel. Wrapped in ceramic and carbon layers, TRISO fuel is designed to withstand extreme heat without melting down, providing passive safety mechanisms.

Valar Atomics demonstrated its central innovation, the Ward 250 microreactor, in the Utah desert roughly 30 miles from the proposed Project Beehive site. The microreactor first achieved criticality in June inside a tent structure in the Utah desert. Weeks later, during a July 1 demonstration, the firm used electricity generated by the reactor to power a single Nvidia microchip.

NPR reports that non-nuclear construction could start as early as late this year, with initial reactors slated to go live in 2028.

Local activists are expressing strong concern over the proposal, which joins a growing wave of data center developments across Utah. Neal Clark of the Southern Utah Wilderness Alliance voiced alarm that federal and state officials are advancing the massive project on public lands.

Critics have also questioned the economic distribution. They argue that local residents bear long-term nuclear safety risks while out-of-state tech corporations capture the majority of the financial reward.

Trump’s push for SMRs

Project Beehive highlights the grand ambitions of a new era of companies driving a nuclear power resurgence. These ventures are supported by the Trump administration, which has introduced extensive regulatory reforms to streamline the testing and deployment of small modular reactors.

Earlier, the U.S. Department of Energy selected the firm under Executive Order 14301 to achieve reactor criticality on American soil by July 4, 2026.

“Under the framework of Executive Order 14301, we are part of a coordinated national effort to restore American dominance in nuclear technology,” the company stated earlier.

The project now rests on federal environmental review processes.

If the BLM deems Valar Atomics’ application complete, it will issue a formal Notice of Realty Action. That step triggers an environmental impact analysis under the National Environmental Policy Act (NEPA), opening mandatory windows for public comment before any federal land leases are finalized.