Singapore-focused Earth Venture Capital has invested in the US$100 million Series B funding round of US-based Aalo Atomics, a next-generation nuclear energy startup.
Valor Equity Partners is the lead investor.
The funding will be used to construct Aalo’s inaugural nuclear power plant, the Aalo-X, at the Idaho National Laboratory in the US. With criticality targeted for next summer, this project will become the first advanced nuclear facility to commence operations in the US in decades.
This deal comes a year after Earth VC’s investment in Aalo’s US$27 million investment round in 2024.
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Crucially for the tech sector, this demonstration plant will be paired with an experimental data centre built directly alongside it, showcasing a novel approach to addressing AI’s insatiable energy demands.
The AI-energy nexus and Asia’s urgent need
The implications for Asia, particularly Southeast Asia, are profound. The region is grappling with an escalating energy crisis driven by rapid digital expansion.
Between 2019 and 2023, data centre capacity in Southeast Asia expanded by nearly 30 per cent, consuming an astonishing four to five times more power per square metre than traditional factories. In India, data centre capacity is projected to double by 2026, a direct reflection of surging demand from digital and AI infrastructure.
Across the broader Asia-Pacific region, inventory growth exceeding 20 per cent year-on-year paints a stark picture, with forecast electricity shortfalls of 15-25 GW by 2028. This data underscores an urgent, unmet requirement for clean, reliable baseload energy. Aalo’s modular reactor technology aims to address this pressing issue.
In contrast to conventional gigawatt-scale nuclear installations, Aalo’s reactors are engineered for factory production and rapid, fleet deployment. This design philosophy enables their swift and efficient integration to power critical infrastructure such as data centres, industrial clusters, and utility networks.
Aalo’s strategic roadmap involves scaling from its demonstration plant to deploying thousands of “Aalo Pods.” Each Pod is envisioned to comprise five Aalo-1 reactors and one turbine, designed to power data centres at an unprecedented scale.
The company’s long-term ambition is to slash electricity costs to an exceptionally competitive US$0.03 per kWh, positioning nuclear energy to rival renewables and natural gas in affordability.
Also Read: The AI-energy paradox: Will AI spark a green energy revolution or deepen the global energy crisis?
For Earth VC, Aalo’s Series B achievement resonates deeply with its core mission: to champion ambitious deep tech innovators capable of facilitating the decarbonisation of Emerging Asia and safeguarding prosperity on a habitable planet.
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