NOV's Nuclear Gambit: Powering the AI Revolution with Oilfield Muscle

HOUSTON, TX – December 10, 2025 – In a move that signals a profound strategic shift for one of the energy sector's most established players, oil and gas equipment titan NOV Inc. announced it has sold its advanced nuclear development subsidiary, Shepherd Power, to Natura Resources. But this is no simple divestiture. The all-stock transaction transforms NOV from a potential nuclear developer into a key investor, board member, and—most critically—the manufacturing backbone for Natura's ambitious plan to power the digital economy.

At the heart of the deal is a Memorandum of Understanding that establishes a supply chain agreement, positioning NOV to leverage its century-and-a-half of industrial manufacturing experience to build Natura's advanced Small Modular Reactors (SMRs). This partnership isn't just about entering a new market; it's a calculated response to one of the most pressing challenges of our time: the insatiable energy appetite of artificial intelligence and the data centers that house it.

The AI Power Crunch Creates Unlikely Alliances

The digital world is built on electricity, and the AI revolution is pushing demand to unprecedented levels. Global data center electricity consumption, which stood at roughly 415 terawatt-hours (TWh) in 2024, is projected to more than double to 945 TWh by 2030. To put that in perspective, that's more than the entire annual electricity consumption of Japan. The United States alone is expected to see its data center power needs surge by 133% over the same period.

This exponential growth, driven by energy-intensive AI workloads, has created a critical problem. Data centers require 24/7, high-reliability baseload power that intermittent renewables like solar and wind cannot provide alone. This has sent tech giants and power developers scrambling for a solution, and many are now looking to advanced nuclear energy. SMRs, with their small footprint, modular scalability, and carbon-free baseload output, are emerging as the ideal power source for the AI era.

It is within this context that the NOV-Natura deal finds its powerful logic. “The power market is one of the most significant industrial growth opportunities of the next decade,” said Jose Bayardo, President and COO of NOV, in the official announcement. His statement underscores a strategic recognition that the skills honed building the backbone of the fossil fuel industry are directly transferable to constructing the clean energy infrastructure of tomorrow.

A Marriage of Technology, Regulation, and Industrial Might

This transaction creates a uniquely integrated entity, combining cutting-edge reactor technology, unparalleled regulatory expertise, and the industrial capacity required for mass production. It's a three-legged stool designed for stability and rapid scaling in a nascent industry.

First is Natura's technology. The company is a leader in molten salt reactors (MSRs), an advanced design that uses liquid fuel dissolved in a salt mixture. This allows for higher operating temperatures at lower pressures, enhancing safety through passive mechanisms and producing less long-lived radioactive waste. Natura’s credibility was significantly boosted in September 2024 when it secured the first-ever construction permit from the U.S. Nuclear Regulatory Commission (NRC) for a liquid-fueled reactor, a 1-megawatt research system at Abilene Christian University.

Second is the crucial expertise acquired from Shepherd Power. Founded by NOV, Shepherd Power has been a leading voice in reforming the complex and often cumbersome nuclear regulatory landscape. Its “Project Hotshot” initiative identified key bottlenecks in the NRC's frameworks—which were designed for gigawatt-scale plants—and advocated for streamlined processes tailored to smaller, factory-built reactors. By integrating Shepherd Power, Natura doesn't just acquire a subsidiary; it absorbs years of progress in navigating and shaping the regulatory pathways essential for commercial deployment.

Finally, NOV brings the industrial muscle. The primary obstacle for SMRs has been the high “first-of-a-kind” costs, which can run up to $8,000 per kilowatt. The only way to make SMRs economically competitive is through standardized, series production—something the nuclear industry has never achieved. NOV, with its global supply chain, procurement expertise, and vast manufacturing footprint, is built for exactly this kind of scaled production. The company has a long history of delivering highly engineered, mission-critical equipment to the demanding oil and gas sector, a background that provides the foundation for what Bayardo calls the “rigor, scale, and reliability” needed in nuclear.

De-Risking the Nuclear Future

The structure of the deal is a masterclass in strategic risk management and corporate synergy. For NOV, it provides a direct but de-risked entry into the high-growth advanced energy sector. Rather than attempting to build a reactor and a regulatory team from the ground up, it has invested in a technological and regulatory leader and positioned itself as the indispensable manufacturing partner. The board seat ensures its investment is strategically aligned, while the supply agreement funnels business directly to its core competency.

For Natura, the partnership is an accelerant. It solves the two biggest challenges facing any SMR developer: navigating the regulatory labyrinth and figuring out how to build reactors affordably at scale. The acquisition of Shepherd Power solidifies its regulatory advantage, while the MOU with NOV provides a clear, credible path to manufacturing.

“This strategic transaction will accelerate commercialization of our molten salt reactor technology,” said Doug Robison, Founder and CEO of Natura Resources. He highlighted the combination of Shepherd’s regulatory leadership with “NOV’s expertise in scaling highly engineered equipment to drive down delivery costs” as the key to unlocking their commercial goals.

The partnership aims to deliver gigawatts of power within five years, a timeline that would have been unthinkable without this fusion of capabilities.

The Road to 2029: From Blueprint to Baseload Power

The collaboration has a clear and ambitious target: begin deploying 100-megawatt molten salt reactor units for data centers and industrial markets in 2029, with plans to reach full-scale production by 2032. Natura is already planning to file two commercial reactor applications with the NRC before the end of 2025, signaling its intent to move swiftly from research to commercial reality.

By focusing on industrial micro-grids and on-site power for data centers, the partnership is targeting a market where the value proposition of SMRs is strongest. These customers need grid independence, power reliability, and a small land footprint, all of which Natura's MSRs, built by NOV, are designed to provide. The high-temperature heat from the reactors can even be used for industrial processes or data center cooling, further boosting efficiency.

This alliance between an energy incumbent and a nuclear innovator is more than just a single business deal; it may well be the template for how the energy transition is financed and executed. It demonstrates how legacy industrial strengths can be repurposed to build the future, and how strategic partnerships can overcome the immense financial and logistical hurdles of deploying next-generation clean energy. As the digital economy's demand for power continues its relentless climb, this fusion of oilfield brawn and nuclear brains is poised to become a formidable force in the race to keep the lights on.