Retired Navy Nuclear Reactors From Warships Could Power AI Data Centers in Tennessee

HGP Intelligent Energy Proposes Military Reactors for Civilian Use

Texas-based HGP Intelligent Energy has submitted a proposal to the U.S. Department of Energy to repurpose retired Navy nuclear reactors from aircraft carriers and submarines for AI data centers at Oak Ridge National Laboratory in Tennessee1

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. The initiative, dubbed the CoreHeld Project, would mark the first time military reactors have been converted for civilian use4

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. The plan involves deploying two decommissioned naval reactors to deliver between 450 and 520 megawatts of carbon-free baseload power, enough to support intensive AI training and inference workloads that demand constant, predictable electricity3

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The U.S. Navy currently operates Westinghouse A4W nuclear reactors in Nimitz-class nuclear aircraft carriers and General Electric S8G reactors in Los Angeles-class nuclear-powered attack submarines1

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. The USS Nimitz, which entered service in 1975, is on its last deployment before retirement, while nearly a third of Los Angeles-class SSNs have already been decommissioned2

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. These naval pressurized water reactors were designed for long operational lifetimes and have demonstrated reliability through decades of safe military service4

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Cost-Effective Power Source for AI Infrastructure

HGP Intelligent Energy estimates the entire project would cost between $1.8 billion and $2.1 billion, translating to approximately $1 million to $4 million per megawatt1

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. This represents a fraction of the cost required to build an entirely new nuclear power plant or the small modular reactors being proposed by tech giants like Amazon, Meta, Oracle, Microsoft, Google, and Nvidia1

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. The company plans to file for a loan guarantee from the Energy Department to help launch the initiative2

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Beyond cost savings, the proposal addresses the escalating energy demands of AI by giving retired nuclear reactors from warships a second life rather than disposing of them at the DOE's Hanford Site1

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. HGP argues that reusing naval reactors could dramatically shorten deployment timelines compared to building new nuclear facilities from scratch, which often take more than a decade to permit and construct2

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. The reactors would be installed in a hardened, land-based facility near Oak Ridge National Laboratory, an area with deep nuclear expertise and existing infrastructure2

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Regulatory Hurdles and Safety Concerns

The proposal faces significant regulatory challenges. Naval reactors typically use highly enriched fuel and are engineered as sealed systems, which means they do not align neatly with existing Nuclear Regulatory Commission licensing frameworks for commercial power plants4

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. Because the reactors were already designed, built, and operated under strict military standards, HGP Intelligent Energy believes regulatory approval could be faster, though it would still require extensive oversight from the Nuclear Regulatory Commission and the Department of Energy2

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Critics point to challenges around transporting and refitting aging reactors, managing nuclear waste, and ensuring long-term safety and security2

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. Experts note that naval reactors are optimized for propulsion rather than grid power, raising questions about practicality and the extensive redesign required before they could operate in a civilian context3

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. HGP's plan includes a revenue-sharing program with the government and establishing a decommissioning fund to address these concerns1

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Growing Nuclear Interest Among Tech Companies

The proposal reflects growing pressure on the U.S. power grid as AI workloads drive rapid expansion of hyperscale data centers4

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. Cloud providers and infrastructure operators are increasingly exploring nuclear energy as a source of carbon-free, always-on power, with recent interest spanning traditional reactors, small modular reactors, and long-term power purchase agreements tied to nuclear facilities4

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. Companies developing nuclear power solutions are gaining increasing attention from venture capital, with X-energy Reactor Co. raising $700 million in November and Radiant Industries Inc. securing more than $300 million in December for portable microreactors4

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Gregory Forero, chief executive of HGP Intelligent Energy, expressed confidence in the proposal: "We already know how to do this safely and at scale, and we're fortunate to have a solid base of investors and partners who share that vision"1

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. The World Nuclear Association reports that the U.S. Navy has operated more than 100 nuclear reactors for over 50 years without any radiologic accidents, demonstrating their reliability1

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. Whether this proposal gains approval from the U.S. Department of Energy will signal how seriously federal agencies are considering unconventional solutions to meet the power demands of AI infrastructure.