U.S. Tech Park in Israel May Have a Nuclear Power Plant

U.S. Tech Park in Israel May Have a Nuclear Power Plant

UK is Seeking a Pipeline of Advanced Nuclear Projects

Think Tank; Europe Must Show Stronger Policy Support Towards Nuclear

U.S. Tech Park in Israel May Have a Nuclear Power Plant

Israel signed an agreement with the U.S. on 01/16/26  to build an industrial park to produce advanced computer chips at a location in the Negev desert that would use a small modular nuclear reactor (SMR) to power the factory and nearby data centers also planned for this location.

Where things stand now, according to Israel news media, Israel and the US have inked an agreement to jointly build and operate a large technological park in Israel. The deal is part of a strategic cooperation agreement on AI signed in Jerusalem last month. (Israel government statement)

One of the surprising details to emerge from the discussions on the agreement relates to the energy infrastructure. The huge power demands of data centers and AI computer systems require a large, reliable 7/24/365 energy solution. As a result, the possibility appears to be kicking around of constructing one or more nuclear power plants, most likely SMRs, at the site.

Concept Profile of SMRs powering AI data centers at a site in Israel’s Negev Desert.
Image: Google Gemini

The MOU, signed by the head of the National AI Directorate, Brig. Gen. (Res.) Erez Eskel, and the U.S. Under Secretary of State for Economic Affairs Jacob Helberg, reveals an ambitious plan to allocate 4,000 acres to the U.S. The park, which will be constructed in the Negev Desert or less likely in the Gaza Strip border area, and which will be called “Fort Foundry One”

Helberg travelled to Israel after signing similar agreements in Doha and Abu Dhabi. He said that Israel was an “anchor partner” in the effort, thanks to its technological ecosystem and its ability to produce “asymmetric results” in relation to its geographical size.

US Under Secretary of State for Economic Affairs, Jacob Helberg said, “With the launch of Pax Silica, the United States and Israel are uniting our innovation ecosystems to ensure the future is shaped by strong and sovereign allies leading in critical technologies like AI and robotics.”  

Helberg comes to his role as a former lobbyist for Silicon Valley information technology firms and as a former executive for Google. One of his key interest areas has been addressing the national security risks posed to the U.S. by China. He wrote a book on the subject, The Wires of War: Technology and the Global Struggle for Power, (2021) calling for a stronger U.S. strategy against China’s technological ambition. According to the publisher’s book jacket, Helberg led Google’s global internal product policy efforts to combat disinformation and foreign interference in U.S. domestic affairs.

U.S. Thinks a Contractual Fig Leaf Can Cover the Absence off a 123 Agreement

Israel to date has no experience with civilian nuclear power plants used for electricity generation. The country has reportedly produced an unspecified number of nuclear weapons used as a deterrence factor when dealing with hostile neighbors like Iran. Also, Israel has not signed the Nuclear Nonproliferation Treaty due to policy of strategic ambiguity and its obvious reluctance to reveal the extent of its nuclear arsenal.

The official MOU for the Negev AI data center remains somewhat vague referring to a “high-intensity energy infrastructure” but it clearly is pointing to small modular reactors (50-300 MW). Due to the location in the extremely dry Negev desert, an advanced design, such as an HTGR, which does not require cooling water to operate, is likely to be chosen should the project reach a stage where a reactor design would be selected for this site.

The joint initiative is part of a broad international framework launched by the Trump administration called “Pax Silica“, a coalition of about twelve countries in technology, the aim of which is to secure supply chains of semiconductors and AI. Taiwan did not sign the agreement.

Israel joined the initiative in December 2025, and was the first country to sign a bilateral agreement with the U.S. in this framework. Among the other countries in the coalition are Qatar, the UAE, Australia, Greece, Japan, South Korea, Singapore, and United Kingdom.

The Heavy Lift Associated with Civilian Nuclear Power in Israel

Map of the Israeli natural gas network. Image: Wikipedia

Israel has abundant natural gas supplies to support private wire gas power generation for data centers. It doesn’t need small modular reactors to power them.

The geopolitical heavy lift that would be required for a civilian nuclear power plant in Israel would probably set off a similar request from Saudi Arabia for the same kind of deal.

The Saudi government has been stalled for years in its quest for US nuclear reactors due to its insistence on the right to uranium enrichment as part of a 123 Agreement with the U.S. The Saudi government sees enrichment as a deterrence signal to Iran over its nuclear program. If the U.S. gives a green light to Israel, through some kind of three bank policy pool shot, to build U.S. supplied civlian SMRs, without a 123 Agreement,  the Saudis would likely ask for a similar deal.

While President Trump has busted through a lot of international norms, and removed the U.S. from multilateral agreements like climate change, busting the bounds of the Nonproliferation Treaty would set a dangerous precedent that could be followed by similar actions by Russia and China.

This would move the planet into dangerous territory. For this reason, consideration of a U.S. managed nuclear power plant in Israel may be too hot a potato for even Trump to toss over the transom. Bipartisan opposition in the Senate would be almost certain for a civilian nuclear reactor deal with Israel without a 123 agreement.

Israel does not have an agreement with the U.S. under Section 123 of the Atomic Energy act as such a move would require it to declare its nuclear infrastructure. The Israeli government has relied on strategic ambiguity about how many nuclear devices it has as a deterrence measure. The Israeli government is not going to give that up military advantage away to get small modular reactors to power data centers in a white collar industrial park.

Finally, the news release by the Israeli Prime Minister’s office about the U.S. deal may be one of a series of trial balloons the Israeli government has floated over the years about civilian nuclear power so it should be viewed with some skepticism for that point alone.

The U.S. plan apparently is to cover these issues with a contractual fig leaf that depends on a unique model in which the reactor operates under U.S. safety regulation and supervision, despite being located on Israeli territory. It’s a pretty thin leaf.

Watch What We Do Not What We Say

It is not lost on the Saudi and Israel governments that India enjoys a special relationship regarding recent developments that open the door to India for acquisition of civilian U.S. nuclear reactor technologies, without having a 123 Agreement, while these two nations are locked out these opportunities.

Where things get complicated is that the Saudi government has undoubtedly been watching how U.S. nuclear reactor firms are faring with India for some time. Recently, India opened the door to U.S. nuclear reactors by terminating its supplier liability law that acted very effectively as a trade barrier for U.S. firms.

Almost at the same time, the U.S. Department of Energy granted Holtec permission to export its 300 MW SMR to India.  The authorization names three Indian companies – Larsen & Tubro (Mumbai), Tata Consulting Engineers (Mumbai) and the Company’s own subsidiary, Holtec Asia (Pune) – as eligible entities with whom Holtec can share necessary technical information to execute its SMR-300 program. Holtec also plans to build a factory in India to manufacture the small reactors. Westinghouse is expected to seek to enter the Indian nuclear market.

What the Saudi government sees is that U.S. policy towards India shows a remarkably different approach to a country which has declared it has a nuclear arsenal, has tested its nuclear weapons, and is not a party to the Nonproliferation Treaty. Further, India does not have a 123 agreement with the U.S. and has no immediate plans to seek one. Israel has likely come to the same point of view.

The fact that Israel has signed an MOU with the U.S. that could potentially involve it  acquiring U.S. manufactured SMRs is a signal that if India can do it, so can Israel. Saudi Arabia will not be far behind in asking for the same deal should the Israeli industrial park agreement move forward beyond the MOU stage.

Saudi Plans for AI Data Centers Points to Nuclear Reactor to Power Them

The Saudi government’s ambitious plans and programs to transform the oil rich company into a regional powerhouse for artificial intelligence will require significant investments in electricity generation to power the AI data centers needed to carry out this effort.

According to a report in the New York Times, Saudi Arabia is investing $40 billion to become a dominant player for the use of AI in the Middle East. Data centers to support this program will require enormous amounts of electrical power to support the advanced semiconductors that process AI software, to power the data centers themselves, and to keep them cool in one of the hottest regions on the planet.

It follows that the Saudi government will coordinate its plans for a  nuclear new build with its massive investments in AI. It is likely that sooner or later Saudi Arabia’s need to break ground on the first two reactors in anticipation of the need for power for its AI program and related data centers.

It may decide that building commercial nuclear power plants to power its AI program is more important than the geopolitical consideration of having access to nuclear technologies with or without a U.S. 123 Agreement. Given the U.S. course of actions with India, Saudi Arabia may ask for the same kind of deal thus bypassing the entire enrichment policy issue it has with the U.S.

The Saud government has a tender outstanding, which has been on hold for some time, to build two 1,400 MW PWR type reactors. It has also explored options for SMRs for data centers and to power desalination plants to provide potable water for general and industrial uses. A award for the two reactors could be the first order of business the Saudi government will seek to pursue in asking for the same deal the U.S. gave India.

& & &

UK is Seeking a Pipeline of Advanced Nuclear Projects

(WNN) In order to speed up deployment of advanced nuclear and attract private investment, the UK government said it is launching a ‘pipeline’ of credible projects that meet essential readiness criteria. It said a ‘concierge-style’ service will help developers understand requirements around UK planning, regulation and fuel, as well as enabling them to crowd-in private investment. (Complete UK Government Statement Regarding ‘Project Enablers’)


The U.K. government wants to create a “pipeline” of nuclear power plants, of all sizes and technology/design types through a series of enabling policy mechanisms.  Image: Google Gemini.

Developers can use the Advanced Nuclear Framework to submit proposals to join the pipeline from March this year, which will then be assessed by experts in government and Great British Energy-Nuclear (GBE-N) according to key criteria such as technology status, developer capability, and financing plans.

Successful applicants would receive in-principle government endorsement. While they would be expected to be privately financed, it would also open up discussions on what support from the government might be needed to help get projects off the ground, while providing value to the taxpayer and billpayer, including: revenue support once projects are operational; and risk protections for extremely rare events to develop projects with little risk for the taxpayer. Additionally, projects can approach the National Wealth Fund, who can act as a catalytic investor for projects that meet their investment criteria, and help de-risk further private investment.

“Advanced nuclear technology could revolutionize how we power industry and propel the AI data center boom – delivering more clean energy and jobs,” said Minister for Nuclear Patrick Vallance.

Tom Greatrex, Chief Executive of the Nuclear Industry Association, said: “This framework provides welcome clarity and momentum for advanced nuclear projects in the UK. A clear process by which projects can get an in-principle government endorsement is vital to unlocking private investment and giving developers the confidence to move from ambition to delivery.”

Scope of Advanced Reactors Projects in the UK

Lord Livermore, Financial Secretary to the Treasury, added: “This government is delivering the largest investment in nuclear power in a generation to create new jobs and to drive economic growth right across the UK. The plans we have published today will provide investors with the long-term confidence they need to back advanced nuclear technologies here in Britain.”

“Britain is one of the first to champion the development of cutting-edge nuclear projects driven by the private sector, recently announcing major commercial deals between UK and US companies,” said the Department for Energy Security and Net Zero. “This includes plans for X-Energy and Centrica to build 12 advanced modular reactors in Hartlepool, supporting 2,500 jobs, as well as plans for Holtec, EDF, and Tritax to build small modular reactors at the former coal-fired power station Cottam in Nottinghamshire, providing clean, secure power to data centers on the site. Meanwhile TerraPower is working with engineering firm KBR to explore the potential deployment of its Natrium advanced reactor technology in the UK and beyond.”

The government is also publishing a Statement on Civil Nuclear Fuel Use, which sets out the requirements for uranium-based fuels used in civil nuclear reactors, providing clarity for the sector. It ensures alignment with national objectives for energy security, environmental protection, and long-term used fuel and waste management.

& & &

Think Tank; Europe Must Show Stronger Policy Support Towards Nuclear To Attract Private Investment

(NucNet) Brussels-based think tank the Centre for European Policy Studies (CEPS) says financing for nuclear projects within the European Union remains the central bottleneck for a real nuclear renaissance. Clearer public policies are required to stimulate private investment.  (full CEPS statement)

Image: Google Gemini

CEPS said that while the advent of small modular reactors (SMRs) might eventually alter the dynamic, strong public backing, as well as funding, remained indispensable.

“This doesn’t diminish the role of private investment,” CEPS said. “Strong political and policy support, including de-risking options such as state-backed guarantees, are essential for underpinning private investment and lowering financing costs.”

CEPS added that private investors would only commit to financing projects if EU states provide “robust, transparent risk-sharing to kickstart deployment.”

It said that EU funding and de-risking tools also matter, with the European Investment Bank’s (EIB) “cautious re-engagement” with nuclear being welcomed. The EIB finances some nuclear power projects, but is particularly focused on those that are seen as “technically, environmentally and economically justified.”

Sweden’s Policy Outlook

CEPS said that currently perhaps only Sweden met the conditions of providing a clear policy outlook. It said its government loans, political guarantees, and two-way contracts for difference were useful case studies. Sweden has since 2022 looked to bring back nuclear power to the table having recognized the limitations of creating a system principally led by renewables.

According to the CEPS, Poland also provided a good example having committed state aid to finance its first nuclear power station. The project was signed off in a record time of under 12 months by the European Commission.

Poland’s Commitments

Poland committed an estimated PLN 60 billion (€14.2b, $16.8bn) for a power station that will use three Westinghouse AP1000 reactor units. Having provided such support, the country also said in December that it had received 26 preliminary offers from banks to support the debt financing for the project.

CEPS said that more EU states were beginning to turn to nuclear in recognition of its system-level benefits, its contribution to meeting climate goals, and its role as a core component of the energy system transformation.

“At EU level, pragmatism appears to be gaining ground, even as existing frameworks still fall short of fully leveraging nuclear’s strengths,” CEPS said.

It cautioned, however, that the prospects of nuclear still hinged on the industry’s ability to deliver projects on time and within budget, and most importantly on states’ willingness to provide financial and political backing.

CEPS said that all eyes would be on the ability of Korea Hydro & Nuclear (KHNP) to replicate its on-time and on-budget Barakah nuclear project in the United Arab Emirates with its $18bn (€15.7bn) project in the Czech Republic.

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