WASHINGTON (AP) — The Trump administration is allocating $17.5 billion to expedite the development of ten new large nuclear reactors in response to the increasing power demands from massive data centers. Energy Secretary Chris Wright emphasized the "tremendous interest" among developers who would consume the power generated, along with utilities and energy companies. The anticipated timeline suggests that these nuclear plants could commence construction by 2030 and potentially begin operations in the mid-2030s.
"This is the start," Wright stated during a press call with reporters. "We’re going to move with the players that are ready to stand up and move quickly. Once that supply chain is up and running, do we think there will be dozens of these built going forward? I’d be very surprised if there were not."
Historically, most nuclear power plants in the United States were built between 1970 and 1990. Only two new large reactors have been constructed from scratch in recent decades, specifically at Georgia Power Co.’s Plant Vogtle, which faced significant delays and budget overruns. The ten proposed reactors will utilize the Westinghouse AP1000 design.
Wright acknowledged the challenges faced during the Plant Vogtle project, which included poor planning, supply chain issues, and setbacks due to the COVID-19 pandemic. Nevertheless, he asserted that the AP1000 reactor design is "robust and sound." He added, "By building in volume and at multiple locations, we think we will create and stand up a large supply chain and build a lot of construction expertise. We expect the timing and cost of these plants to well outperform what was done on Vogtle."
According to the Energy Department, seven utilities and energy companies have submitted letters of intent indicating potential sites for the new reactors, although specific names and locations remain undisclosed to avoid premature speculation. The agency intends to select five sites, each hosting two reactors. The federal financing will primarily be allocated to acquire nuclear components with long lead times, rather than serving as construction loans.
President Donald Trump has set an ambitious goal of quadrupling domestic nuclear power production within the next 25 years, signing executive orders aimed at accelerating development. The administration is actively working to promote new nuclear technologies, including small modular reactors.
Dan Sumner, president and CEO of Westinghouse, remarked that industrialized nuclear power must be developed at scale to ensure that the U.S. can lead in sectors such as artificial intelligence and advanced manufacturing, which will shape the upcoming century.
However, critics argue against expanding nuclear reactor construction, citing high costs and safety concerns compared to other low-carbon energy alternatives. Recent estimates indicate that data centers consumed approximately 4% to 5% of the nation’s total electricity in 2024, a figure projected to nearly triple by 2028. Analysts warn that total electricity usage across the nation might increase by as much as 20% in the forthcoming decade, largely driven by data center growth.
The Energy Department has noted that the loans provided could potentially accelerate the development schedule of the ten reactors by up to three years and reduce overall construction expenses. The objective is for all ten to be under construction by 2030, with operational power generation commencing in the mid-2030s.
Wright has indicated that utilities and Westinghouse will collectively contribute up to $5 billion in equity for the five projects involving two reactors each. The department is prepared to offer up to $17.5 billion in loans, with a cap of $3.5 billion per project, framing this initiative as "very, very low risk to the American taxpayers."
McDermott reported from Providence, R.I.
