Valued at $1.2 billion! Nuclear energy company HGP plans to go public via SPAC, specifically for "flexible power supply" for AI data centers.

According to informed sources, HGP Intelligent Energy plans to go public through a special purpose acquisition company (SPAC), valuing the nuclear service company at approximately $1.2 billion. The Dallas, Texas-based company will merge with Meshflow Acquisition Corp. (MESH.US), and the proceeds from the transaction will be used to advance the commercialization of its technology. The company's technology is designed to enable nuclear reactors to flexibly adjust power output according to real-time fluctuations in electricity demand from artificial intelligence (AI) data centers. Informed sources also indicated that the company would provide similar peak-shaving services for local grids. Spokespersons for HGP and Meshflow declined to comment. According to informed sources, the merged entity will be renamed Leyte Parent Inc., and the announcement of the transaction could occur as early as Tuesday local time. It is reported that HGP's software and coolant pump system allows nuclear reactors to track electricity flows in real-time, thereby improving operational efficiency. According to an internal memo from HGP, the loss of electricity load (a term used in the industry) for AI data centers typically ranges from approximately $10,000 to over $100,000 per megawatt-hour. For a long time, large nuclear power plants have been outputting gigawatt-level electricity continuously with stable power, while fossil fuel-fired power plants adjust their output to match supply with demand. Today, next-generation nuclear projects are striving for greater flexibility, allowing for rapid response to load changes while providing zero-carbon energy. Due to years of delays in grid access, electricity developers are racing to find rapid supply solutions for AI factories, which consume as much electricity as an entire city. Meanwhile, data centers are facing increasing opposition from the public, political circles, and regulatory bodies due to their high consumption of electricity and water resources, elevated greenhouse gas emissions, rising electricity prices, and noise pollution. Bartosz Lipinski, Chairman and CEO of Meshflow, stated in the aforementioned memo: "HGP is focusing on a critical aspect of this opportunityits technology allows existing and next-generation nuclear reactors to be more flexible in the grid, creating greater value. We believe this transaction will provide HGP with the resources needed for scalable commercial promotion while allowing Meshflow's shareholders to participate in the investment in this critical support sector for America's AI-driven energy infrastructure." Meshflow, headquartered in Chicago, raised $345 million through a Nasdaq IPO last December. At the time, the SPAC indicated it would seek to merge with companies in the AI infrastructure, energy, and digital asset sectors. CEO Lipinski previously worked at Citadel, while Chief Strategy Officer Alex Dymala-Dolesky is the founder of the uranium trading platform Uranium Digital. HGP CEO Gregory Forero served as Vice President of Constellation Energy Corp. (CEG.US) and was formerly in charge of the energy derivatives business at UBS Group AG. Informed sources reveal that Wall Street veteran Jeffrey Frase will join the new company's board of directors. He has previously worked in the commodity trading divisions of JPMorgan, Lehman Brothers, and Goldman Sachs Group, Inc. In July of this year, HGP, along with Microsoft Corporation (MSFT.US) and NVIDIA Corporation (NVDA.US), was selected for the U.S. Department of Energy's "Prometheus" project, which aims to accelerate the deployment of nuclear reactors and improve their operational efficiency. Additionally, HGP is advancing a plan to utilize reactors from decommissioned U.S. Navy vessels to power data centers at federally owned sites through long-term power purchase agreements. Cantor Fitzgerald & Co. serves as HGP's financial and capital markets advisor, while Pillsbury Winthrop Shaw Pittman LLP acts as its legal advisor.