en.Wedoany.com Reported - The Trump administration plans to provide up to $17.5 billion in funding to accelerate the development of 10 new large-scale nuclear reactors, aiming to address the pressure from rapidly rising electricity demand from large data centers.
U.S. Energy Secretary Chris Wright stated that data center developers, utilities, and energy companies have shown "tremendous interest" in purchasing this nuclear power. Under the Energy Department's vision, these nuclear projects would begin construction by 2030 and start supplying power by the mid-2030s. Wright noted that this is just the beginning, and the government will prioritize working with companies ready to move forward quickly; if the supply chain ramps up, the U.S. may build more such projects in the future.
Most of the U.S.'s currently operating nuclear power plants were built between 1970 and 1990. In recent decades, only two large nuclear reactors have been added in the U.S., both at Georgia Power's Vogtle nuclear plant. That project experienced years of delays and billions of dollars in cost overruns. The 10 reactors planned this time will use the same design: Westinghouse's AP1000. Wright believes the slow progress at Vogtle was mainly due to inadequate planning, supply chain issues, and the impact of the COVID-19 pandemic, but the reactor design itself is "robust and reliable." He said that with a multi-site, scaled construction approach, the U.S. could develop a more stable supply chain and accumulate construction experience, thereby reducing the construction time and cost of subsequent projects.
The U.S. Energy Department said seven utilities and energy companies have signed letters of intent and identified candidate sites. The department plans to ultimately select five sites, with two reactors built at each location. Government funding will primarily be used to procure nuclear equipment and components with long lead times, rather than being directly allocated as construction loans. The Energy Department has not yet disclosed the names of the companies, their states, or a timeline for final site selection.
U.S. President Donald Trump has previously proposed tripling U.S. domestic nuclear power output over the next 25 years and signed several executive orders to accelerate nuclear energy development. The current administration is also promoting new nuclear technologies such as small modular reactors. Westinghouse President and CEO Dan Sumner stated that if the U.S. wants to maintain its lead in artificial intelligence, advanced manufacturing, and the next phase of industrial competition, nuclear power needs to be industrialized on a "fleet scale."
However, expanding nuclear power construction also faces skepticism. Opponents argue that large nuclear reactors are costly and carry higher construction risks than other low-carbon energy sources, and some states have restricted or banned new nuclear plants. Travis Fisher, director of energy and environmental policy research at the libertarian Cato Institute, said that while the Energy Department has the authority to issue related loan guarantees, the executive branch should not be too deeply involved in the power industry. He believes state-level barriers and federal energy biases should be removed, allowing companies to build power generation projects that can withstand market tests.
The U.S. government estimates that data centers accounted for 4% to 5% of national electricity consumption in 2024, and this share could nearly triple by 2028. Some analysts predict that total U.S. electricity consumption could grow by up to 20% over the next decade, with data centers being a major driver. The Energy Department said these loan supports could accelerate the development of up to 10 reactors by three years and help reduce construction costs. Utilities and Westinghouse are expected to contribute a total of up to $5 billion in equity for the five dual-unit projects; the Energy Department plans to provide up to $17.5 billion in loans, or about $3.5 billion in debt financing per project. Wright said this poses a "very, very low" risk to U.S. taxpayers.
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