Nuclear startup X-energy raises $1B in data center-driven IPO

X-energy, a pioneering nuclear startup, has successfully raised $1 billion through its initial public offering, with shares priced at $23 each. This price significantly exceeds the initial range of $16 to $19 per share that the company was targeting. Originally, X-energy aimed for a fundraising goal of around $800 million. Trading for the company's stock is set to commence on the Nasdaq Exchange this Friday, under the ticker symbol XE. X-energy is at the forefront of developing small modular reactors (SMRs) designed to generate electricity and provide heat for industrial applications. Among its notable partnerships, X-energy has secured a deal with Dow to supply heat and power to a chemical facility in Texas. Additionally, the company has an agreement with Amazon to deliver up to 5 gigawatts of nuclear power by 2039, with Amazon’s Climate Pledge Fund playing a key role in X-energy’s Series C-1 funding round. The growing demand for electricity, particularly from data centers and various sectors undergoing electrification, has created a favorable environment for nuclear startups like X-energy. The company asserts that its reactors will produce 80 megawatts of electricity. Each Xe-100 reactor utilizes helium gas for cooling, which circulates over specially designed “pebbles” filled with BB-sized TRISO fuel pellets. This advanced TRISO fuel, developed to enhance safety, contains uranium encased in layers of carbon and silicon. X-energy claims that this fuel can endure higher temperatures, thereby minimizing the risk of meltdown and ensuring safer operations.