TerraPower, the nuclear energy startup founded by Bill Gates, has received federal approval to construct an advanced nuclear reactor in Wyoming, marking a significant moment for next generation atomic energy in the United States. The green light allows the company to move forward with building its Natrium reactor near a retiring coal power plant, signaling a shift toward cleaner baseload power as electricity demand continues to rise.
The approval was granted by the US Nuclear Regulatory Commission, which rarely issues new reactor permits and had not done so in nearly a decade. TerraPower worked through the traditional licensing pathway, allowing it to build on private land rather than relying on special government exemptions.
TerraPower has been developing the Natrium reactor since 2015 in partnership with GE Vernova Hitachi. Once completed, the plant is expected to generate about 345 megawatts of electricity. That output is smaller than conventional large scale nuclear facilities but significantly larger than many small modular reactors proposed by competing startups. The company positions Natrium as a middle ground between massive traditional plants and compact modular systems.
A key feature that distinguishes Natrium from most reactors built over the past half century is its cooling system. Instead of relying on water, the reactor will be cooled using molten sodium. TerraPower argues this design improves safety and operational efficiency. It also marks a major regulatory milestone, as it is the first time in more than four decades that US regulators have approved a commercial reactor using a non water cooling method.
The plant is also designed with integrated energy storage capabilities. Excess heat produced during periods of low electricity demand will be stored in large insulated tanks filled with molten sodium. This stored thermal energy can later be converted into electricity when demand rises or when renewable sources like wind and solar experience dips in output. The approach addresses one of nuclear power’s longstanding limitations, since reactors typically operate most efficiently at constant output levels.
The timing of the approval reflects broader shifts in the energy and technology sectors. Rapid growth in data centers and artificial intelligence infrastructure has increased pressure to secure reliable sources of continuous electricity. As a result, technology investors and major companies have renewed interest in nuclear energy, pouring billions of dollars into advanced reactor developers.
TerraPower has emerged as one of the sector’s most heavily funded players. The company has raised roughly $1.7 billion to date, including a major funding round completed in mid 2025. Investors are betting that advanced designs and modern construction approaches can avoid the cost overruns that have historically plagued nuclear megaprojects.
Despite growing momentum, challenges remain. Nuclear energy still ranks among the most expensive options for new power generation, particularly as solar, wind, and battery technologies continue to become cheaper. Startups argue that factory style manufacturing and standardized designs could eventually reduce construction costs, though proving those savings may take many years.
With federal approval secured, TerraPower now faces the real test of turning its advanced reactor concept into a working commercial power plant that could influence the future direction of nuclear energy development.