X-energy, a fast-rising advanced nuclear company backed by Amazon, closed a massive $700 million funding round, one of the largest ever raised by a nuclear reactor developer. The round was led by Jane Street and brought in new investors, including ARK Invest, Galvanize, Hood River Capital Management, Point72, Reaves Asset Management, and XTX Ventures.
The press release highlighted that with this raise, X-energy has now secured $1.4 billion in just 13 months, showing how strongly investors believe nuclear energy will power the next wave of data-hungry technologies, especially artificial intelligence.
The company plans to use the fresh capital to expand its supply chain and support its commercial pipeline. X-energy already holds an order book of more than 11 gigawatts, equal to roughly 144 small modular reactors across the U.S. and the U.K.
Why SMRs Are Stealing the Spotlight
Small modular reactors have moved from niche energy tech to mainstream climate and industrial solutions. Unlike traditional nuclear plants, SMRs are factory-built, compact, and can be added in increments. They sit close to industrial sites, blend easily with renewable grids, and deliver firm, zero-carbon power around the clock.
According to recent market studies, the global SMR sector was valued at $7.49 billion in 2025, and it is expected to grow to $16.13 billion by 2034, a strong 8.9 percent CAGR. The surge is driven by more reactor designs clearing regulatory reviews and moving toward full deployment.
X-energy stands out in this fast-growing market because its design solves several challenges that renewables and large reactors struggle to address. Its systems support industrial heat, provide grid stability, and allow flexible siting.
Three Major Deals: Amazon, Dow, and Centrica
X-energy is advancing its Xe-100 advanced SMR alongside its in-house TRISO-X nuclear fuel. The company has three major anchor partnerships that position it for large-scale deployment.
- The first is with Dow Inc. X-energy plans to build a four-unit Xe-100 plant at Dow’s Seadrift facility in Texas. The project is backed by the U.S. Department of Energy’s Advanced Reactor Demonstration Program and is under review by the Nuclear Regulatory Commission.
- The second is with Amazon. The company announced options to deploy more than 5 gigawatts of Xe-100 reactors across the United States by 2039. The first site will be the Cascade Advanced Energy Facility in Washington state, developed with Energy Northwest. This deal signals Amazon’s shift toward securing long-term, clean, reliable power for cloud services and AI operations.
- The third is with Centrica in the United Kingdom. Through this partnership, X-energy plans to develop 6 gigawatts of advanced nuclear capacity. The deal positions SMRs as an important part of the U.K.’s clean power and energy-security strategy.
Together, these partnerships give X-energy a long runway for scaling its technology and building commercial fleets.
Kam Ghaffarian, Ph.D., Founder and Executive Chairman of X-energy, said:
“The response and commitment from the participants in this financing round is a strong affirmation of the role X-energy expects to play in shaping the future of energy. When I founded X-energy, I envisioned a company that could redefine how to make advanced nuclear energy accessible, affordable, and essential to an energy-abundant future. With the support of our investors, both new and existing, we are closer to realizing that vision.”
Inside the Xe-100: How the Technology Works
The Xe-100 is an advanced, high-temperature, gas-cooled reactor that uses helium as coolant and graphite as moderator. These design choices improve safety and performance. Each module produces 80 megawatts of electricity. Several modules can work together in a four-pack, reaching 320 megawatts or more.
One of the Xe-100’s defining features is its high thermal efficiency, which reaches the mid-40 percent range. That is significantly higher than many traditional light water reactors. Because it runs hotter and more efficiently, it can support a wide range of applications. These include electricity generation, industrial heat, hydrogen production, chemical manufacturing, refining, and steelmaking. This makes the reactor useful not only for clean electricity but also for decarbonizing heavy industry, something renewables alone cannot accomplish.
Watch the video:
TRISO-X Fuel: A Built-In Competitive Advantage
Xe-100 is TRISO fuel, a highly durable nuclear fuel made of tiny coated particles. U.S. government agencies often describe TRISO as one of the safest and most resilient fuel forms ever developed. X-energy produces its own version, called TRISO-X, through a fully owned subsidiary. The company is also building a first-of-its-kind fuel fabrication facility in the United States.
This vertical integration gives X-energy several major advantages. It allows strong supply chain control because the company will not rely on external fuel suppliers. It also creates a barrier to entry for competitors because TRISO production requires tough qualification standards, specialized equipment, and strict safety protocols. Few reactor developers can match this quickly.
Another advantage is recurring revenue. While reactor vendors traditionally earn money from equipment sales, fuel production creates ongoing income similar to a subscription business model. Finally, domestic TRISO capacity supports national energy security goals. It may also serve defense or remote power applications that require resilient, long-lasting fuel.
Together, these factors turn X-energy from a simple reactor manufacturer into a full-scale nuclear platform with long-term economic potential.
X-energy CEO J. Clay Sell noted,
“We are highly focused on building a world-class project and technology delivery platform to accelerate the commercialization of our Xe-100 reactor and TRISO-X fuel. The success of this financing round allows us to deepen partnerships with critical deployment partners and invest in a robust and reliable supply chain to successfully deliver projects with our customers.”
The Climate Angle: Coal-to-Nuclear Swaps
As coal plants retire across the United States, the United Kingdom, and Europe, SMRs are emerging as strong replacement options. Coal sites already have grid interconnections, cooling water access, and trained workers. Studies show that replacing a coal boiler with an SMR module can cut emissions dramatically while reusing existing infrastructure and protecting local jobs.
SMRs also help in regions where wind or solar cannot scale because of weak resources or limited land availability. High-temperature reactors like the Xe-100 extend the decarbonization potential even further by providing stable heat to industrial clusters. Many sectors, such as chemicals, fertilizers, steel, and refining, cannot be electrified easily. SMRs offer a low-carbon path that works without interruption. This matters for companies trying to cut Scope 1 and Scope 2 emissions under tightening climate rules.
Why Investors Are Paying Attention
X-energy’s fundraising momentum reflects broader shifts in the clean energy landscape. Policy-aligned technologies that match government climate goals continue to attract capital, even in a higher interest rate environment.
At the same time, expectations for nuclear energy are changing. Investors now value modular construction, flexible siting, compatibility with renewables, supply chain strength, and clear commercial pathways. X-energy is positioning itself at the intersection of these requirements.
Another major trend is the shift from grant-funded R&D to full project finance for advanced nuclear. The sector is moving toward long-term offtake agreements and utility-scale deployments, similar to those in solar, wind, and battery storage. Investors who once focused on carbon credits are now looking at firm, zero-carbon electricity and clean industrial heat as valuable assets on their own. This is especially true for companies running AI data centers, large cloud operations, and energy-intensive manufacturing.
The Big Picture
X-energy’s $700 million raise shows how the energy transition is entering a new phase. Renewables remain vital, but they need support from reliable, around-the-clock, zero-carbon power. SMRs, especially advanced designs like the Xe-100, offer that critical blend of reliability, flexibility, and scalability.
With Amazon, Dow, and Centrica already on board, X-energy is shifting from a promising nuclear innovator to a major commercial player. For investors and policymakers, the message is clear: advanced nuclear is no longer a distant experiment. It is becoming a central pillar of the net-zero strategy and a key part of the future clean energy system.
The post X-energy Lands $700 Million Nuclear Deal to Scale SMRs Across the U.S. and U.K. appeared first on Carbon Credits.
