DOE Announces $17.5B Nuclear Power Loans, For Data Center-Created Demand
Photo by Wim Vant Einde, Unsplash.
News Release
WASHINGTON, D.C. — The Trump administration has announced a $17.5 billion federal financing program aimed at accelerating construction of 10 large nuclear reactors to help meet rising electricity demand driven by data centers, artificial intelligence and advanced manufacturing.
Under the plan, all 10 reactors would use Westinghouse’s AP1000 design, the same technology deployed at Georgia’s Plant Vogtle. The Department of Energy intends to select five sites, each hosting two reactors. Seven utilities have submitted letters of intent identifying potential locations, although federal officials have not disclosed which states are under consideration.
Federal officials hope construction can begin by 2030, with the reactors entering service in the mid-2030s. The DOE said the financing could reduce development timelines by as much as three years while lowering costs through bulk equipment purchases and a standardized construction approach.
The financing structure calls for utilities and Westinghouse to provide up to $5 billion in equity across the projects, paired with up to $3.5 billion in federal debt per site. Officials say building multiple identical reactors simultaneously will strengthen supply chains and avoid many of the planning and procurement problems that contributed to delays and cost overruns at Plant Vogtle.
The initiative is part of Pres. Donald Trump’s broader goal of quadrupling U.S. nuclear power generation over the next 25 years.
Federal estimates show data centers consumed between 4% and 5% of the nation’s electricity in 2024, a share projected to nearly triple by 2028. Some analysts forecast overall U.S. electricity demand could rise 20% during the next decade as data-center power consumption continues to grow.
Supporters argue large-scale nuclear power is necessary to meet future energy needs while maintaining grid reliability. Critics, however, contend nuclear projects remain expensive and financially risky compared with other low-carbon energy sources, while some policy analysts question whether the federal government should play a major role in directing electricity-market investments.