6GW Nuclear Power Supply Agreement: Non-Binding Framework with Nano Nuclear and Tillman

Nano Nuclear Energy (NANO Nuclear Energy·$NNE) has entered into a non-binding commercial framework with Tillman affiliates to explore a power supply plan for micro-reactors exceeding 6GW in the U.S. AI industrial zone. The target capacity is projected to exceed 2GW by the mid-2030s and 6GW by 2040.

In a statement on the 24th, Nano Nuclear announced that it would evaluate and develop applications for the KRONOS MMR energy system with Tillman Global Holdings and Tillman Digital Gateway (TDG). The framework identifies Nano Nuclear as Tillman's anticipated primary nuclear technology provider.

The core of this agreement is that it ties the power demand of AI data centers to the commercialization schedule of next-generation nuclear power within a single business structure. Tillman Digital Gateway is presented as a platform for developing AI industrial zones and data center pipelines in the U.S., while Nano Nuclear is reviewing plans to deploy micro-reactors to meet this demand.

Tillman is a company that develops large-scale digital and energy infrastructure. The statement from Nano Nuclear explains that Tillman has secured approximately $16 billion (about 22.16 trillion KRW) in capital since its establishment. However, Tillman's official business page states that the investment capital exceeds $10 billion, indicating that the criteria and calculations may differ.

The compensation structure is also included in the framework. Tillman may receive warrants to purchase up to $100 million (about 138.5 billion KRW) worth of common stock from Nano Nuclear. Multiple warrants will vest only if there are binding agreements for future reactor purchases.

The initial restricted stock grant is set at $5 million (about 6.9 billion KRW), a significant portion of which is tied to achieving project development milestones. However, the actual stock compensation and reactor purchases are not automatically linked.

Warrants are rights to purchase company stock under specified conditions. In large-scale infrastructure collaborations, it is common to design compensation rights to arise gradually based on conditions such as follow-up contracts, customer acquisition, and progress in licensing. This structure is closer to long-term development options than to contracts for confirmed commercial deployment.

Nano Nuclear's KRONOS MMR is introduced as a 15MWe high-temperature gas-cooled micro modular reactor. The company's website states that this reactor is in the pre-application stage for construction permits with the U.S. Nuclear Regulatory Commission (NRC).

On the 12th, Nano Nuclear updated that the NRC has officially reviewed the construction permit application for the KRONOS MMR deployment at the University of Illinois. The same document states that the company holds $580 million (about 803.3 billion KRW) in cash and short-term investments.

Micro modular reactors are a concept for small nuclear power plants designed for factory production and on-site deployment. They typically supply power in smaller units than large nuclear plants and are proposed to be located closer to demand sites. However, actual commercial operation requires a sequence of design reviews, construction permits, operating licenses, fuel supply, and site and customer contracts.

As the power demand for AI data centers increases, nuclear power companies are emphasizing their ability to provide stable power supply 24/7. Data centers have high GPU and server density, making power supply and cooling facilities prerequisites for business schedules. Delays in securing power can also delay server deployment and customer contracts.

Nano Nuclear has already been pursuing partnerships targeting the AI data center power market. On May 6, the company announced a memorandum of understanding with Supermicro to explore integrating on-site nuclear power into AI server and data center platforms. This Tillman framework is another example of an initiative to alleviate the bottleneck of AI data center power infrastructure with nuclear power.

Previously, we reported that NuScale Power Corporation's (NuScale Power·$SMR) 6GW small modular reactor supply plan also started at the non-binding agreement stage. At that time, the key issue was that there were still business-specific licensing, fuel supply, construction, and financing procedures remaining before actual power production could occur.

This announcement is also difficult to interpret as an order or commencement of construction. Nano Nuclear stated that final contracts, customer agreements, funding, regulatory approvals, and project requirements must be met. The same document noted that there is a risk that the collaboration between the two parties may end at the exploratory stage.

For data center operators, this means having the option to secure long-term power sources in advance. Conversely, for Nano Nuclear, there is a concern that if technology licensing and actual purchase agreements are delayed, expectations may not translate into reality.

The criteria for subsequent judgments will be the progress of KRONOS MMR licensing, customer agreements for Tillman projects, and whether binding reactor purchase contracts are signed. The currently disclosed target capacities are set for the mid-2030s and 2040.

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