Valar Atomics partners with Nvidia to reduce AI data center water consumption
Waterless reactors and closed-loop cooling could let AI data centres grow without draining local water supplies.
Key takeaways
- Valar Atomics is partnering with Nvidia to build a small data center in Utah designed to show AI facilities can conserve water.
- Valar ran a demonstration powering Nvidia's Blackwell from its small reactor, the first time a small reactor powered a data center.
- Valar's high-temperature reactor is cooled with helium instead of water, and is part of a US Department of Energy pilot programme.
- Nvidia says closed-loop liquid cooling in its DSX design can cut facility-cooling water use from roughly 2.6 million gallons per megawatt a year to near zero.
Cite or link to this article
Griffin, M. (2026) 'Valar Atomics partners with Nvidia to reduce AI data center water consumption', 311 Institute, 1 July. Available at: https://www.311institute.com/valar-atomics-nvidia-nuclear-microreactor-data-center-water/ (Accessed: 25 October 2026).
Valar Atomics, a nuclear power startup, said on Wednesday it is partnering with Nvidia to develop a small data centre in Utah that the companies claim will show how computing facilities needed for Artificial Intelligence (AI) can conserve water.
California-based Valar announced the partnership in Utah at the site of its small nuclear plant called a Nuclear Microreactor. It also ran a demonstration powering Nvidia’s Blackwell, its latest AI chip architecture for data centers. It was the first time a small reactor powered a data centre, the companies said.
Valar is one of about 10 nuclear energy startups in a US Department of Energy reactor pilot program that set a goal to demonstrate three small reactors reaching criticality - when a nuclear reaction can sustain itself - by July 4.
The Future of the Global Energy Economy Keynote, a keynote by futurist Matthew Griffin
Nvidia announced last week that it would use closed-loop liquid cooling for DSX, its latest data centre design, a method it says can reduce facility-cooling water consumption from roughly 2.6 million gallons per megawatt per year to near zero which, as the United Nations projects that by 2030 AI data centres could consume more water than 1 Billion people, is at least a start.
A Ipsos poll last month showed that only one in three Americans approve of the fast pace of data centre construction, an issue on the minds of voters ahead of the November 3 midterm elections.
The industry's power need has led companies to seek to source their own power with private or "behind-the-metre" plants to enable them to bypass permitting, public stakeholder engagement and grid interconnection.
These projects have primarily been natural gas, but some companies are eying nascent small nuclear reactors to power AI infrastructure.
President Donald Trump's administration sees small nuclear reactors as one of several ways to expand power generation. Trump last May issued executive orders aimed at quadrupling nuclear deployment.
“Through this work with Valar Atomics, Nvidia is exploring how behind-the-metre, waterless advanced nuclear systems could support future AI factories built for the scale and reliability accelerated computing requires,” said John Josephakis, an Nvidia global vice president.
Valar founder Isaiah Taylor said the startup is attempting to demonstrate that nuclear projects, which often face long regulatory hurdles, can be done quickly. Valar says its high-temperature reactor is cooled with helium instead of water.
Valar joined litigation against the Nuclear Regulatory Commission last year by the states of Texas and Utah arguing that it does not have licensing authority over some nuclear microreactors and small modular reactors, seeking to give that oversight to individual states.
First published on Fanatical Futurist on 1 July 2026.
311 Intelligence
What this means
Analysis by the 311 Strategic Intelligence Unit
The big shift is AI data centres bringing their own power and their own answer to water. Valar Atomics has powered Nvidia's Blackwell from a small helium-cooled reactor, the first time a small reactor powered a data centre, and Nvidia says closed-loop liquid cooling can cut facility-cooling water use to near zero. Our Starburst data shows the pressure behind this: we track AI Power Demand Surge, data centre electricity use jumping as AI makes power the main limit on growth, as an Act now trend, and AI Data Centre Backlash, communities blocking and pausing AI data centres over power bills, water and noise, as an Act now trend.
What it means by sector.
- Technology and cloud: private on-site power plants let operators bypass permitting, public stakeholder engagement and grid interconnection. Small nuclear reactors are now a contender alongside the natural gas plants most projects use today.
- Energy and utilities: a reactor cooled with helium instead of water removes one of the biggest local objections to new data centres. But we rate Small Modular Reactors a Watch technology, with wide use not expected until 2040.
- Government and regulators: the US Department of Energy pilot aims for three small reactors to reach criticality by 4 July, while Valar has joined Texas and Utah in litigation over Nuclear Regulatory Commission licensing authority. Only one in three Americans approve of the pace of data centre construction ahead of the midterms.
What to do now.
- Ask your cloud and colocation providers how much water their facilities use per megawatt and what cooling they run.
- Add local water and community acceptance to your criteria when you choose data centre sites or providers.
- Treat small nuclear power for data centres as a long-dated option to monitor, not a near-term supply you can plan around.
The Starburst technologies behind this story
From the 311 Technology Starburst (first product, expected wide use and readiness):
| Technology | Category | First product | Wide use | Action | TRL |
|---|---|---|---|---|---|
| Small Modular Reactors | Energy | 2019 | 2040 | Watch | 8 |
| High Temperature Gas Cooled Nuclear Reactors | Energy | 1976 | 2055 | Watch | 9 |
| Direct-to-Chip Liquid Cooling | Compute | 2018 | 2028 | Prepare | 9 |
And the trends they feed, from the 311 Trends Starburst:
| Trend | Wide use | Action |
|---|---|---|
| AI Power Demand Surge | 2027 | Act now |
| AI Data Centre Backlash | 2026 | Act now |
| Water Scarcity and Stress | 2018 | Act now |
How this moves the trend
Big tech has been reaching for nuclear power for some time. Amazon announced plans to add data centres to a nuclear powered campus in 2024, and Microsoft moved to restart Three Mile Island in 2025. Water then joined power as the constraint: Google designed a Texas data centre to cool itself without any water, and the UN warned AI could use as much water as a billion people. Valar and Nvidia combine both answers on one site.
Go deeper with 311
- The 311 Starburst Centre: every technology and trend above, with timelines and readiness.
- 311 Vantage: ask what nuclear-powered AI data centres mean for your organisation and get a plain English executive brief.
- The Exponential Technology Codex and the Annual Trends Codex: the technologies and trends reshaping every industry.
- Book a briefing or keynote on the future of energy, AI and infrastructure for your board or leadership team.
FAQ
What are Valar Atomics and Nvidia building in Utah?
They are developing a small data center in Utah, at the site of Valar's small nuclear plant, to show how AI computing facilities can conserve water. Valar's reactor is cooled with helium instead of water, and it has already powered Nvidia's Blackwell in a demonstration.
Why does AI data center water use matter?
The United Nations projects that by 2030 AI data centers could consume more water than 1 billion people. Nvidia says traditional facility cooling uses roughly 2.6 million gallons of water per megawatt per year, which closed-loop liquid cooling can cut to near zero.
Why are AI companies turning to their own power plants?
The industry's power needs have led companies to source their own power with private on-site power plants, which let them bypass permitting, public stakeholder engagement and grid interconnection. Most have used natural gas, but some are now eyeing small nuclear reactors.
What is the US Department of Energy reactor pilot programme?
Valar is one of about 10 nuclear energy startups in the programme, which set a goal of demonstrating three small reactors reaching criticality, when a nuclear reaction can sustain itself, by 4 July.
What is Valar's dispute with the Nuclear Regulatory Commission?
Valar joined litigation brought by Texas and Utah arguing that the Nuclear Regulatory Commission does not have licensing authority over some nuclear microreactors and small modular reactors, seeking to hand that oversight to individual states.
About the author
Matthew Griffin Founder, 311 Institute
Matthew Griffin is a multi-award winning Futurist and expert in Disruption and Innovation, Geopolitics, Leadership, and Technology, who NASA have described as a "walking encyclopaedia of the future" and a "futurist Polymath."
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Matthew Griffin is a multi-award winning Futurist and expert in Disruption and Innovation, Geopolitics, Leadership, and Technology, who NASA have described as a "walking encyclopaedia of the future" and a "futurist Polymath." 15-time best selling author of the "Codex of the Future" series, Matthew is the Founder and Futurist in Chief of the 311 Institute, a global Futures and Deep Futures advisory firm working with royal households, world leaders, G7, G20, and G77 governments, NGOs, and multi-national mid and mega cap firms to help them explore, shape, and lead the next 50 years of business and society.
An award-winning YouTube creator with over a million followers, with an unrivalled global reach and impact, Matthew is a highly sought-after international keynote speaker, lecturer, and mentor who collaborates with global leaders through the United Nations Alliance of Civilizations (UNAOC) and United Nations General Assembly (UNGA) to shape pivotal initiatives such as the UN’s AI for Humanity program, the United Nations Conference of the Parties (UN COP), and the World Economic Forum in Davos.
As the former Global Head of Cloud, National Security, and Enterprise Sales for companies including Atos, Dell-EMC, and IBM, Matthew has a proven track record of building multi-billion dollar business units and turning failing divisions into market leaders. His ability to identify, analyse, and communicate the implications of hundreds of emerging technologies and trends is unparalleled, and his insights are trusted by many of the world’s most respected organisations, including ABB, Accenture, Adidas, AON, ARM, BCG, Centrica, Citi, Coca-Cola, Dentons, Deloitte, Dow Jones, EY, Google, KPMG, Lego, Legal & General, LinkedIn, Microsoft, PepsiCo, Qualcomm, RWE, Samsung, Siemens AG and Siemens Energy, T-Mobile, UBS, VISA, Walmart, Workday, Worldpay and many others.
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