en.Wedoany.com Reported - The Trump administration will provide $17.5 billion to accelerate the development of 10 new large nuclear reactors, aiming to meet the surging electricity demand from large data centers.

Energy Secretary Chris Wright said that data center developers, utilities, and energy companies have shown "tremendous interest" in purchasing this power. Wright and other officials stated on Tuesday that these nuclear plants could begin construction as early as 2030 and become operational by the mid-2030s.

"This is just the beginning," Wright said during a conference call with reporters. "We will work with participants who are ready to step up and move quickly. Once the supply chain is up and running, do we think dozens of these projects will be built in the future? I would be very surprised if not."

Most nuclear power plants in the U.S. were built between 1970 and 1990. In recent decades, only two large reactors have been newly constructed in the country. These two reactors, located at Georgia Power's Vogtle nuclear plant, faced years of delays and billions of dollars in cost overruns. The 10 new reactors will use the same design, Westinghouse's AP1000 reactor.

Wright attributed the slow progress of the Vogtle project to poor planning, supply chain issues, and the impact of the COVID-19 pandemic. However, he noted that the reactor design is "robust and reliable."

"Through large-scale, multi-site construction, we believe we can establish and solidify a massive supply chain and accumulate extensive construction experience," Wright said. "We expect these nuclear plants to far surpass the Vogtle plant in both construction time and cost."

The U.S. Department of Energy stated that seven utilities and energy companies have signed letters of intent, identifying potential sites. The department plans to ultimately select five locations, each hosting two reactors. Federal funding will be used to procure long-lead-time nuclear components rather than for construction loans.

The department declined to disclose the names of the utilities involved or their states, stating that it is too early to reveal this information before making final selections. The department also did not provide a timeline for making these final decisions.

President Donald Trump has set a goal of tripling domestic nuclear power output over the next 25 years and has signed several executive orders to accelerate nuclear energy development. The current administration is working to advance new nuclear technologies, such as small modular reactors.

Dan Sumner, President and CEO of Westinghouse Electric Company, said that to maintain U.S. leadership in artificial intelligence, advanced manufacturing, and the industries that will define the next century, industrial-scale nuclear power needs to be built on a fleet basis.

Opponents of building more nuclear reactors argue that they are too expensive and carry higher risks compared to other low-carbon energy sources. Some states have restricted or banned the construction of new nuclear plants.

Travis Fisher, Director of Energy and Environmental Policy Research at the libertarian Cato Institute, said the Department of Energy has the authority to issue these loan guarantees, but he believes the executive branch should not be so deeply involved in the electricity sector.

He added that if past experience is any guide, the next administration will use similar powers to favor another set of energy resources. "Remove state-level barriers and federal favoritism, and let companies build power plants that can pass the market test," Fisher wrote in an email on Tuesday.

According to government estimates, data centers consumed 4% to 5% of the nation's electricity in 2024, a share that could nearly triple by 2028. Some analysts predict that national electricity consumption could grow by up to 20% over the next decade, with data centers being a primary driver of this increase.

The U.S. Department of Energy said these loans could accelerate the development of the 10 reactors by up to three years and reduce construction costs. The department's goal is for all 10 reactors to begin construction by 2030 and start supplying power by the mid-2030s.

Utilities and Westinghouse are expected to contribute a total of up to $5 billion in equity across the five dual-reactor projects. Wright said his department will provide up to $17.5 billion in loans, or $3.5 billion in debt per project, matching the equity. He described this as "very, very low risk" for U.S. taxpayers.

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