Trump Administration Pledges $17.5 Billion for New Nuclear Reactors

The Trump administration has committed $17.5 billion in loans to facilitate the development of 10 new large nuclear reactors, a move intended to address the rapidly growing electricity needs of data centers. Energy Secretary Chris Wright stated that there is "tremendous interest" from data center developers, utilities, and energy companies for the power these facilities would generate.

Officials indicated that construction on the reactors could commence by 2030, with operations beginning in the mid-2030s. Wright described the initiative as a starting point, suggesting that significant expansion of nuclear power is anticipated once the supply chain is established. He expressed confidence that "dozens of these" could be built in the future.

Most of the United States' current nuclear power plants were constructed between 1970 and 1990. In recent decades, only two large reactors have been built from scratch, at Georgia Power Co.'s Plant Vogtle. These projects experienced significant delays and cost overruns, though Wright asserted that the Westinghouse AP1000 design, which will be used for the new reactors, is "robust and sound."

The administration aims to overcome previous challenges by building reactors in volume at multiple locations, fostering expertise and establishing a robust supply chain. Wright anticipates that this approach will lead to better timing and cost performance compared to the Vogtle project.

Seven utilities and energy companies have signed letters of intent identifying potential sites. The Energy Department plans to select five sites, each to host two reactors. The federal financing will be allocated for the purchase of nuclear components with long lead times, functioning as debt rather than construction loans. The department has not yet disclosed the names of the participating utilities or their locations.

President Donald Trump has previously set a goal to quadruple domestic nuclear power production within 25 years and has issued executive orders to expedite its development. The administration is also exploring advanced nuclear technologies, including small modular reactors.

Dan Sumner, president and chief executive officer of Westinghouse, emphasized the necessity of building nuclear power at a "fleet scale" to support the growth of artificial intelligence, advanced manufacturing, and other key future industries.

Critics of expanded nuclear power generation raise concerns about the cost and potential risks compared to other low-carbon energy sources. However, data centers are a significant and growing consumer of electricity. Government estimates indicate that data centers accounted for 4% to 5% of the nation's total electricity in 2024, a share that could nearly triple by 2028. Some analysts project a nationwide electricity use increase of up to 20% in the next decade, with data centers being a primary driver.

The Energy Department stated that the loans could accelerate the development of these 10 reactors by up to three years and reduce construction costs. The department is targeting for all 10 reactors to be under construction by 2030. Utilities and Westinghouse are expected to contribute approximately $5 billion in equity across the five projects, with the federal government providing up to $17.5 billion in debt financing, which Wright characterized as "very, very low risk to the American taxpayers."