Aalo Atomics has partnered with energy firm Baker Hughes to build a key part for its new nuclear reactor. The steam turbine will help power data centers using clean energy.
Aalo Atomics, a company that builds small nuclear plants, has chosen Baker Hughes to supply a 10 MWe steam turbine generator. The turbine will be used in Aalo-X, an experimental nuclear reactor designed to power AI data centers. Baker Hughes will deliver the equipment by the end of 2026.
Texas-based Aalo Atomics signed the agreement with Baker Hughes in late 2025. Baker Hughes brings decades of experience in building steam turbines for power generation. Yasir Arafat, Chief Technology Officer at Aalo Atomics, said the partnership makes sense because both companies focus on modular designs that are easy to assemble.
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Data centers that run AI services need enormous amounts of electricity. Current power grids struggle to meet this growing demand reliably. Nuclear energy offers a steady, clean power source that runs day and night, unlike solar or wind.
The steam turbine acts as the “power island” of the nuclear reactor. When the reactor generates heat, it turns water into steam. The steam then spins the turbine, which creates electricity. Baker Hughes will also supply supporting systems that help the turbine run safely and efficiently.
Aalo Atomics is building its Aalo-X reactor at the Idaho National Laboratory. The site has already broken ground and completed design reviews with experts. The company expects to reach “criticality” — when the nuclear reaction becomes self-sustaining — later this year.
This is still an experimental project. The reactor is small and designed mainly to prove the technology works. Large-scale commercial use would require more testing and regulatory approvals. Baker Hughes will deliver the turbine by the end of 2026, so full operation is still years away.
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If successful, this partnership could show that small nuclear plants are a realistic solution for power-hungry data centers. Alessandro Bresciani, Senior Vice President at Baker Hughes, said advanced nuclear facilities can generate sustainable and reliable power for the digital economy. The project brings together proven industrial parts with new reactor design, reducing technical risks.
