US Plans to Reuse Navy Nuclear Reactors for AI Data Centers
US Startup Proposes Using Retired Navy Nuclear Reactors to Supply 520 MW to AI Data Centers
A Texas-based energy developer, HGP Intelligent Energy, has proposed repurposing two retired U.S. Navy nuclear reactors to supply continuous electricity to a planned AI data-center project near Oak Ridge, Tennessee.
The Oak Ridge reactor proposal was submitted to the U.S. Department of Energy (DOE) as the United States looks for large, reliable power sources to support rapidly growing artificial-intelligence computing demand.
HGP’s project, known as the CoreHeld Project, could provide approximately 450 to 520 megawatts of around-the-clock electricity. That amount is comparable to the electricity consumption of roughly 360,000 homes, according to Bloomberg’s reporting on the proposal. The power would instead be directed primarily toward energy-intensive AI data-center operations, where continuous electricity supply is particularly important.
The reactors under consideration are naval pressurized-water reactor technology historically used aboard U.S. nuclear-powered warships. Reports have identified Westinghouse A4W reactors used on Nimitz-class aircraft carriers and S6G reactors associated with Los Angeles-class attack submarines as technologies relevant to HGP’s proposal.
The company says the approach would reuse proven naval nuclear technology rather than wait for an entirely new commercial reactor to be designed, licensed and constructed.
HGP estimates that preparing the reactors and associated infrastructure for civilian electricity production would require approximately $1.8 billion to $2.1 billion in private capital. The developer is also seeking support through a U.S. Department of Energy loan guarantee. According to reporting based on the proposal, HGP estimates costs of roughly $1 million to $4 million per megawatt, although these are company estimates and should not be treated as an established project cost.
The idea is significant because the proposed facility would involve converting military nuclear propulsion technology for civilian electricity generation. If approved and successfully completed, it could represent a new pathway for retired naval reactors that would otherwise undergo decommissioning. HGP has proposed sharing some project revenue with the government and establishing a fund to address future decommissioning and related nuclear responsibilities.
HGP’s proposal comes as the company expands its broader nuclear-energy strategy. In September 2026, HGP announced a definitive agreement to combine with Meshflow Acquisition Corp., while saying its technology is intended to help nuclear reactors respond more dynamically to changing electricity demand from AI data centers.
