UAE’s CE-Ventures Backs US$100 Million Round in American Nuclear Startup Aalo Atomics

CE-Ventures, the corporate venture capital arm of the UAE-based investment firm Crescent Enterprises, has participated in a US$100 million Series B funding round for Aalo Atomics, an American nuclear technology company.  

The round was led by Valor Equity Partners, a Chicago-based growth-oriented investment firm, with participation from Fine Structure Ventures, the Boston-based venture capital arm of Fidelity Investments, Hitachi Ventures, the corporate venture capital arm of Japan’s Hitachi, and Crosscut Ventures, a Los Angeles-based early-stage venture capital firm and others. 

Founded by serial entrepreneur Matt Loszak alongside nuclear architect Yasir Arafat in the US in 2022, Aalo Atomics is a nuclear engineering company pioneering mass-manufactured modular reactors designed to power anything from artificial intelligence (AI) data centers to large cities. The company was recently selected by the US Department of Energy (DOE) for its Reactor Pilot Program, which will see it build its first Aalo-X experimental unit at Idaho National Laboratory, with the goal of achieving zero-power criticality by July 2026. It also intends to place an experimental data center next to the plant to showcase how its modular reactors can directly power AI infrastructure.

In an interview with Inc. Arabia, Sudarshan Pareek, Senior Vice President of CE-Ventures, explained that CE-Ventures’ backing of Aalo and nuclear energy is rooted in a broader strategic view of where the energy sector is heading, and how new demand patterns are reshaping investment priorities. “We have been evaluating energy investments for several years, and today, we are at a pivotal moment for the nuclear energy space–given the tailwinds from surging demand for reliable, sustainable, continuous and scalable energy driven by data centers to power AI; positive regulatory developments; and advancement of nuclear science–all of which contributed towards our thesis in this space,” Pareek said.  

The deal also aligns with CE-Ventures’ broader mandate. “Our strategy is to back transformative technologies and visionary founders in high-growth, high-impact sectors,” Pareek said. “So, for us, Aalo’s mission and approach towards nuclear energy is compelling, and we are proud to partner with them.” Pareek especially highlighted the talent at Aalo as a key reason for the bet. “Aalo Atomics and their team are exceptional, and they have exceptional expertise in this space,” he said. “They have demonstrated incredible progress in a short time period, and there is strong confidence in their ability to achieve their mission of delivering a nuclear power plant to cater to the increasing energy demand at an accelerated pace." 

Sudarshan Pareek, Senior Vice President of CE-Ventures. Image courtesy CE-Ventures.

According to the International Energy Agency, electricity consumption from AI-related data centers is projected to more than quadruple by 2030, putting growing pressure on power systems. Against this backdrop, Pareek said nuclear energy is well positioned to address the challenge. “The surge in AI adoption is driving unprecedented demand for reliable energy, and nuclear power can play a crucial role in meeting this demand with clean, scalable solutions,” he said.  

For CE-Ventures, the deal also reflects the UAE’s role in advancing global conversations on energy and technology. While he noted it is still early to discuss bringing Aalo’s technology to the country or region, he did laud the rapid progress the company has seen. “Aalo’s momentum is impressive as they go through fast-tracked testing with a scheduled ‘turn on’ of their first nuclear power plant next summer,” he said. “We are excited to be invested in what is set to be the world’s first nuclear plant and data center to be built together.” 

Pareek also framed the deal within the wider Crescent Group ecosystem and its connection to Crescent Enterprises, where CE-Ventures sits. “The UAE and region are at the forefront of championing advanced technologies, enabling innovation, and convening global partnerships,” Pareek said. “Our parent entities, Crescent Enterprises and Crescent Group, have a strong legacy of unlocking impactful capital and championing responsible growth opportunities across technology, energy, and UAE-US infrastructure." 

In terms of the road ahead, CE-Ventures sees opportunities across multiple frontier sectors. “We will continue to look at technology-enabled high-growth businesses and venture capital funds across the frontier tech ecosystem, including fintech, consumer, software, biotech, and energy tech–a sector we see as critical to unlocking the full potential of AI and the wider digital transformation,” Pareek said. “And we will continue to back exceptional entrepreneurs to help them scale growth-driven businesses for long-term value creation.” 

Pictured in the image is the Aalo Atomics team. Image courtesy Aalo Atomics.