Higher-enriched uranium (HALEU) supply for datacenter nuclear power is constrained; federal backing for Nusano production could accelerate availability for SMR deployment.
The US Department of Energy has selected Nusano, a Utah-based company, for its Nuclear Energy Launch Pad Program, designed to help firms commercialize advanced nuclear power concepts. However, this development is unlikely to accelerate near-term nuclear-powered datacenter expansion in the United States.
Nusano is developing a new method to produce high-assay low-enriched uranium (HALEU), fuel required for next-generation nuclear reactors, including small modular reactors (SMRs) and molten salt reactors. HALEU is uranium enriched to between 5 and 20 weight percent of U-235, the primary fissile isotope for nuclear power generation. Traditional reactors use low-enriched uranium under five percent; the higher enrichment powers smaller, more efficient designs currently under development. Several US advanced reactor demonstrations have achieved zero-power criticality, but none operates commercially yet.
The US has lacked a steady commercial-scale HALEU supply for years. Russia historically dominated, and China possesses enrichment capability. As of 2026, only one American company produces HALEU: Centrus, which generated less than two metric tons since signing a government contract in 2019.
Nusano expects to substantially outpace Centrus, projecting each unit will produce 5.9 metric tons of HALEU annually, with the first operational by 2031. However, the company has not yet built a functional demonstration enrichment unit or produced any HALEU; prototype development remains underway.
Nusano's process differs fundamentally from competitors. While others use gas centrifuges spinning uranium hexafluoride at high speeds, Nusano converts uranium feedstock to metal before enrichment, employing proprietary separation techniques to concentrate U-235 and produce metal HALEU. This avoids uranium hexafluoride, which reacts with moisture to form highly toxic hydrogen fluoride and uranyl fluoride, potentially causing fatal chemical burns and lung and kidney damage. Nusano's design requires only 1,200 square feet per unit and anticipates lower production costs than gas-centrifuge methods.
Yet meeting projected demand presents challenges. The DoE estimates HALEU demand could reach 50 metric tons annually by 2035; Nusano's first 5.9 MT/year unit is not scheduled until 2031. Adding to uncertainty, the company deleted a June 2025 announcement claiming a single unit could produce 50 metric tons annually and enable scaling to 350 metric tons by 2029. Nusano stated that announcement reflected prior leadership and outdated figures.
Several datacenter operators have pledged to adopt next-generation nuclear when available. With HALEU production minimal and commercial-scale output years away, such commitments' realization timeline remains unclear. Meanwhile, the Trump administration's EPA has scrapped Biden-era emissions regulations for coal and gas plants, enabling coal generation to potentially increase more than tenfold. Next-generation nuclear remains on the horizon while fossil fuel infrastructure accelerates, with diminished environmental accountability.