The burgeoning technology sector, particularly the artificial intelligence (AI) industry, is creating an unprecedented demand for electricity across the United States. In response, a wave of startups, scientists, and entrepreneurs are developing novel solutions to boost power generation, attracting significant investment and government attention.
Companies are pursuing a dual strategy: some focus on increasing power output, while others aim to improve energy efficiency in AI operations. In San Francisco, Biological Computing Company, founded in 2022, is exploring the use of brain cells derived from rat brains or stem cells. By stimulating these cells and analyzing their responses, the company creates mathematical models designed to enhance the performance of existing AI systems. Co-founder and COO Jonathan Pomeranic stated that the goal is to leverage "hundreds of millions of years of evolutionary advantages" to improve AI efficiency. The company claims its first adapter for a generative video model achieved efficiency gains of up to 500% while simultaneously improving output quality. Following a $25 million fundraising round, Biological Computing Company is developing a text-to-video adapter.
Another approach is being taken by Panthalassa in Portland, Oregon, which is harnessing the power of ocean waves. The company manufactures large, floating structures called nodes, designed to be situated offshore where wave action is strongest. The undersea components of these nodes move with the waves, driving turbines to generate electricity. These nodes contain onboard computing capabilities, allowing them to process tasks locally and transmit results via satellite, functioning as self-contained data centers powered by a renewable energy source.
Nuclear Energy Innovations
The American nuclear industry is also experiencing a resurgence, partly driven by policies aimed at streamlining development. Valar Atomics, a three-year-old company, has rapidly developed its first reactor, completing it in nine months. Valar focuses on manufacturing microreactors, compact nuclear power plants intended to supply power to specific facilities like data centers and factories, rather than entire regions. Isaiah Taylor, Valar's founder, emphasized the company's commitment to scaling nuclear power safely and quickly.
Valar's first reactor, Ward 250, successfully completed a zero-power fueled criticality demonstration at the Utah San Rafael Energy Lab in July 2026. Achieving criticality indicates the reactor can sustain a controlled nuclear chain reaction, a crucial step before it can generate power. The reactor, roughly the size of an RV, is designed to produce 100 kilowatts and features passive cooling systems for enhanced safety. The company plans to mass-produce these microreactors in factories and assemble them at "Gigasites" to achieve multi-gigawatt output for large-scale AI data centers. Valar recently closed a $1 billion Series B funding round, valuing the company at $6 billion.
Deployable Energy is another microreactor manufacturer that has achieved criticality, joining a small group of US startups, including Antares Nuclear, Oklo, and Aalo Atomics, to reach this milestone. Bobby Gallagher, CEO and co-founder of Deployable Energy, noted the shift in the industry towards treating nuclear power "as a product, not a project."
Big Tech companies like Microsoft, Google, Amazon, and Meta are investing in these ambitious projects, signing deals to secure nuclear power for their AI infrastructure. Microsoft, for instance, has agreed to purchase electricity from Constellation Energy to power its data centers, which includes refurbishing the Three Mile Island nuclear plant.
The Promise of Fusion
Beyond fission, the pursuit of nuclear fusion represents a significant long-term goal. Fusion, which combines atoms instead of splitting them, promises even greater energy output per reaction. Despite decades of research, achieving and sustaining the extreme conditions required for fusion has been a challenge. However, recent advancements offer renewed optimism. In December 2025, nuclear power company TAE Technologies merged with Trump Media, announcing plans to build a fusion plant in the US, which could become one of the world's largest power generation sites if the technology proves viable. Tech analyst Dan Ives highlighted fusion as a major opportunity, noting that China is currently leading in this area, making it a critical focus for American technology firms.