Israeli Startup Aims to Power Data Centers With Compact Fusion Reactor
Israeli startup nT-Tao is developing a compact nuclear fusion system designed to provide up to 20 megawatts of continuous electricity directly at customer sites, targeting the significant power demands of data centers. The company has signed a memorandum of understanding with American firm Orion Nuclear Energy to identify initial projects in the U.S. Orion will be responsible for finding potential clients and sites, exploring financing structures, and managing regulatory relations, while nT-Tao will supply the fusion technology and development roadmap.
The initial phase will focus on identifying a small number of U.S. projects for evaluation, with the goal of deploying a fusion system small enough to fit within standard shipping containers. This 20-megawatt capacity, while modest for a large power plant, is significant for industrial facilities or data center campuses. Orion, which already works on projects integrating advanced nuclear facilities with data centers and industrial sites across six U.S. states, sees nT-Tao's offering as filling a gap between microreactors and larger small modular reactors (SMRs).
While nT-Tao recently demonstrated a 50-megawatt pulsed power system for plasma heating experiments, this is distinct from the 20-megawatt continuous commercial power target. The company has achieved plasma temperatures of up to 1.5 million degrees Celsius in its C3 prototype, but commercial viability, where the system produces more power than it consumes and supplies it reliably, is still years away. nT-Tao projects a full pilot deployment in the early 2030s and commercial fusion by the mid-2030s.
Founded in 2019, nT-Tao has raised $22 million in a Series A funding round led by Delek US and Next Gear Ventures, with participation from Honda and others. The company has also received multi-year grants from the Israel Innovation Authority. In parallel, nT-Tao is exploring other commercial avenues, including a potential research center and pilot in Israel to supply energy to water infrastructure.
The collaboration with Orion is seen as a strategic move to prepare the commercial pathway in the U.S. for its fusion technology, acknowledging that energy projects require extensive planning, licensing, and financing that can take years.
