Blue Energy Seeks First ERCOT Connection for Small Modular Nuclear Reactors

Blue Energy Global Inc. has applied to connect a planned nuclear project to the Texas power grid, marking the first application for small modular reactors submitted to the Electric Reliability Council of Texas as developers look to meet rising electricity demand from data centers.

The Maryland-based nuclear startup plans to build as many as five 300-megawatt reactors, totaling up to 1.5 gigawatts of nuclear capacity. The project is being developed to supply power to a Crusoe data center campus in South Texas. Blue Energy has partnered with GE Vernova and Hitachi Nuclear Energy on the 300-megawatt reactor design.

The project is part of a broader push to develop nuclear power for data centers, which require large amounts of electricity around the clock. Texas already has four conventional nuclear reactors at the South Texas Project and Comanche Peak, with more than 5 gigawatts of combined capacity.

Blue Energy's planned nuclear facility is designed as part of a gas-to-nuclear project. The company plans to initially build about 1 gigawatt of natural gas-fired generation, with two units expected to begin operating in 2030 and 2031, according to ERCOT data cited by Bloomberg. Blue Energy has also applied to connect the gas generation to the Texas grid.

The company and Crusoe announced their partnership in 2025 for a 1.5 gigawatt nuclear-powered AI data center campus at the Port of Victoria. The 1,600-acre campus is in Calhoun County and was selected for its access to existing energy, transmission, and natural gas infrastructure.

Blue Energy says the gas-to-nuclear approach is intended to provide power sooner while the nuclear portion is developed. The company has also moved into federal permitting, submitting the first portion of a construction permit application to the Nuclear Regulatory Commission in September.

The ERCOT application comes as Texas faces growing electricity demand from data centers and other large loads, increasing interest in generation sources capable of providing reliable power around the clock.