NextFin News - In a landmark decision that signals a new era for the American nuclear industry, X-Energy Reactor Co., an advanced nuclear technology firm backed by Amazon.com Inc., has received federal approval to manufacture uranium fuel for next-generation reactors. According to Bloomberg, the Nuclear Regulatory Commission (NRC) issued the license on Friday, February 13, 2026, authorizing the company’s Triso-X unit to construct and operate two production facilities at its site in Oak Ridge, Tennessee. This represents the first license for a new fuel fabrication facility granted by the NRC in more than half a century.
The approval allows X-Energy to produce its proprietary TRISO-X fuel, a high-temperature, gas-cooled reactor fuel designed to be inherently safe and resistant to meltdowns. The company, which recently closed a $700 million Series D funding round led by Jane Street and supported by ARK Invest, expects to begin fabricating fuel by 2028. This regulatory green light is a pivotal component of a broader strategy involving U.S. President Trump’s administration, which has increasingly prioritized nuclear energy and fossil fuels as the backbone of national energy security and industrial competitiveness.
The involvement of Amazon is not merely as a passive investor. The retail and cloud giant has secured options to deploy more than 5 gigawatts of X-Energy’s Xe-100 reactors across the United States by 2039. The first major deployment is slated for the Cascade Advanced Energy Facility in Washington state, a project developed in partnership with Energy Northwest. For Amazon, the motivation is clear: the explosive growth of generative artificial intelligence and cloud computing has created an insatiable demand for "firm" carbon-free power—electricity that is available 24/7, unlike intermittent solar and wind resources.
From an analytical perspective, this development marks a fundamental shift in how Big Tech interacts with the energy sector. Historically, hyperscalers like Amazon, Google, and Microsoft relied on Power Purchase Agreements (PPAs) to offset their carbon footprints. However, as the AI revolution pushes data center power requirements from megawatts to gigawatts, these companies are moving toward vertical integration. By backing X-Energy and its fuel production, Amazon is effectively securing its own fuel supply chain, mitigating the risks of uranium enrichment bottlenecks and ensuring the long-term viability of its proprietary power plants.
The TRISO-X fuel itself represents a significant technological leap. Unlike traditional fuel rods, TRISO fuel consists of tiny uranium particles wrapped in three layers of carbon and ceramic materials. These layers act as a containment system for each individual particle, allowing the fuel to withstand temperatures that would melt conventional reactor cores. This "unmeltable" characteristic simplifies the regulatory path for siting reactors closer to industrial centers and data hubs, as it reduces the need for massive emergency exclusion zones. According to CarbonCredits.com, X-Energy’s vertical integration—owning both the reactor design and the fuel fabrication—creates a recurring revenue model similar to a software subscription, providing long-term financial stability that traditional reactor vendors have historically lacked.
The economic implications for the United States are profound. The NRC’s decision to grant a license for the first time in 50 years suggests a streamlining of the regulatory environment under the current administration. U.S. President Trump has moved to reposition the U.S. as a global leader in nuclear exports, countering the influence of Russia and China in the global reactor market. By establishing a domestic supply of advanced reactor fuel, the U.S. reduces its reliance on foreign enrichment services, particularly those from Russia, which has historically dominated the market for High-Assay Low-Enriched Uranium (HALEU) required by many advanced designs.
Looking forward, the success of X-Energy will serve as a bellwether for the Small Modular Reactor (SMR) industry. While traditional large-scale nuclear projects have been plagued by cost overruns and decades-long construction timelines, the SMR model relies on factory-based manufacturing and modular assembly. If X-Energy can meet its 2028 production targets in Oak Ridge, it will provide the necessary proof of concept to unlock billions in further private capital. The market for SMRs is projected to grow to over $16 billion by 2034, and with the backing of hyperscalers, the industry finally has the "anchor tenants" required to move from experimental prototypes to commercial fleets.
However, challenges remain. The Stanford University study cited in recent industry reports suggests that while SMRs offer safety benefits, they may produce different profiles of radioactive waste compared to conventional reactors. Furthermore, the transition from regulatory approval to operational reality requires a robust workforce and a specialized supply chain that has largely atrophied in the U.S. over the last several decades. Nevertheless, the NRC’s Friday ruling is a clear signal that the regulatory barriers are falling, and the race to power the AI era with advanced nuclear energy has officially entered its industrial phase.
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