In a significant development for the technology sector, Blue Energy and Crusoe have announced plans to create a new AI campus in the Port of Victoria, Texas. This project will initially rely on gas power but aims to transition to nuclear energy by the next decade.
The partnership will see the construction of an advanced nuclear power plant capable of generating up to 1.5 gigawatts (GW). This facility will supply energy to a nearby site where Crusoe will establish its AI data centers, often referred to as “bit barns.” The chosen location spans 1,600 acres in Victoria County, strategically located near existing infrastructure such as electric transmission lines, fiber networks, and natural gas pipelines.
Blue Energy plans to implement a “natural gas bridge” to supply power to the Crusoe campus by 2028, with a shift to nuclear power anticipated by 2031. In practical terms, this means that the gas plant will be operational in three years, while the nuclear components are still under construction and awaiting licensing.
The company claims that it will be able to expedite the construction and reduce costs associated with its nuclear reactors by utilizing prefabrication techniques along with existing parts sourced through fixed-price contracts from established fabrication yards and shipyards. This approach aims to minimize the use of reinforced concrete, addressing some of the construction challenges historically faced by nuclear projects.
Jake Jurewicz, CEO and Co-Founder of Blue Energy, remarked, “This partnership with AI infrastructure leader Crusoe marks a key milestone for Blue Energy as we work to meet rising global energy demand and, for the first time in the nuclear industry”s history, build a plant with cost and schedule certainty.”
However, the actual performance of this project will ultimately determine its success. Blue Energy intends to employ light water reactor (LWR) technology, incorporating the latest passive safety features, which include a reactor building submerged in a safety pool to enhance safety measures.
Crusoe, a venture-backed startup, gained attention for its role in developing the first data center in Abilene, Texas, as part of Project Stargate, a collaboration involving OpenAI, Oracle, and Softbank aimed at establishing a global network of AI data centers.
The company describes itself as an “AI factory” and asserts that its vertically integrated model, which encompasses energy sourcing, data center design, construction, and a custom cloud platform, enables it to construct large-scale facilities more rapidly and cost-effectively than traditional methods. The first phase of the Abilene data center became operational just one year after construction commenced.
Interestingly, Victoria County was not previously identified as a potential site for Project Stargate, and the recent announcement did not reference this collaboration.
Andrew Likens, the Vice President of Energy Infrastructure and Development at Crusoe, stated, “Powering the AI revolution requires us to rethink energy, and Crusoe is dedicated to building the infrastructure to make it happen.” This strategy appears to involve utilizing fossil fuels until sufficient nuclear reactor capacity is online to support the energy demands of AI infrastructure, as indicated by recommendations from data center infrastructure company Schneider Electric last year.
As the tech industry increasingly turns to nuclear energy as a viable, carbon-free power source to support AI initiatives, it is important to note that establishing new energy capacity can take significant time. The Port of Victoria project is not the only nuclear data center initiative in Texas; another project is underway by South Korean industrial giant Hyundai, which is set to build a reactor capable of delivering up to 6 GW for AI data centers in Amarillo.
