Trump administration announces $17.5 billion in loans for 10 new large nuclear reactors
WASHINGTON (AP) --- The Trump administration is providing $17.5 billion to speed the development of 10 new large nuclear reactors to meet the skyrocketing power demand from massive data centers.
Energy Secretary Chris Wright cited “tremendous interest” among developers of data centers that would buy the power, as well as utilities and energy companies. The nuclear plants could begin construction by 2030 and become operational in the mid-2030s, Wright and other officials said Tuesday.
“This is the start,” Wright said on a 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.”
Most U.S. nuclear power plants were built between 1970 and 1990. Only two new large reactors have been built from scratch in the United States in recent decades. Those two reactors, at Georgia Power Co.’s Plant Vogtle, were completed years late and billions of dollars over budget. The 10 new reactors will use the same design, Westinghouse’s AP1000.
Wright said the Plant Vogtle project struggled because of bad planning, supply chain problems and the COVID-19 pandemic. But, he said, the reactor design is “robust and sound.”
“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,” Wright said. “We expect the timing and cost of these plants to well outperform what was done on Vogtle.”
Seven utilities and energy companies signed letters of intent that identified sites, the Energy Department said. The agency plans to pick five, which would host two reactors at each site. The federal financing would be used to purchase nuclear components with long lead times, and are not construction loans.
The department declined to name the utilities involved or the states they are in, calling it premature until the selections are made. It did not give a timeline for making those selections.
President Donald Trump set a goal of quadrupling domestic production of nuclear power within the next 25 years, and he has signed executive orders to speed development. The administration is working to advance new nuclear technologies, such as small modular nuclear reactors.
Dan Sumner, president and chief executive officer of Westinghouse, said industrialized nuclear power needs to be built at fleet scale, in order for the United States to lead in artificial intelligence, advanced manufacturing and the industries that will define the next century.
Critics of building more nuclear reactors say they’re too expensive and riskier than other low-carbon energy sources. Several states restrict or ban new nuclear power plant construction.
Travis Fisher, director of energy and environmental policy studies at the libertarian Cato Institute think tank, said the Energy Department has the authority to issue these loan guarantees, but he doesn’t think the executive branch should be so heavily involved in the electricity sector.
If the past is any indication, the next administration will use similar authorities to favor a different set of energy resources, he added. “Remove the state barriers and the federal favoritism and let companies build the power plants that pass the market test,” Fisher wrote in an e-mail Tuesday.
Data centers used 4% to 5% of the nation’s total electricity in 2024, a share that could nearly triple by 2028, according to government estimates. Some analysts predict nationwide electricity use to rise as much as 20% in the next decade, with data centers a big reason.
The Energy Department said the loans could speed up the development of these 10 reactors by up to three years and lower construction costs. Its goal is for all 10 to be under construction by 2030, to start providing power in the mid-2030s.
The utilities and Westinghouse will be expected to contribute up to $5 billion in equity in total across the five, two-reactors projects. Wright said his department provides up to $17.5 billion in loans, or $3.5 billion per project, in debt to pair with the equity. He said it’s “very, very low risk to the American taxpayers.”
https://apnews.com/article/nuclear-reactors-energy-trump-wright-57841139aca7d2780a12256692b96fc5
Walmart’s first nuclear deal shows demand beyond AI data centers
Walmart is signing a long-term contract to buy nuclear power for the first time ever, a promising sign that the industry’s future is supported by more than just the AI data center boom.
The retail giant agreed on Tuesday to buy power from a nuclear plant in Illinois owned by Constellation Energy for its operations in the area, including its stores and a high-tech warehouse in Illinois that stores and sorts perishable food.
Walmart will buy 176 megawatts of power from the plant over a 15-year period, or enough power to serve around 150,000 homes.
The Walmart deal will allow Constellation to expand the capacity of the Illinois plant by 30 megawatts, a process known as an uprate, which can involve replacing older equipment and improving efficiency.
The financial terms were not disclosed, but these types of deals tend to go for premium prices because they allow the buyer to lock in their costs over a long period.
Walmart, which has pledged to eliminate net carbon emissions from its U.S. operations by 2040, will also receive the environmental attributes associated with the nuclear energy, which generates electricity without carbon emissions.
Constellation stock was down 0.3% on Tuesday, outperforming the S&P 500’s decline.
The deal isn’t large enough to significantly boost Constellation’s growth trajectory, given that Constellation has 55 gigawatts worth of generating capacity and the Walmart deal represents less than 0.5% of that total.
Still, investors are eager to see Constellation sign more long-term power agreements, particularly with technology companies seeking electricity for AI data centers.
A lack of similar announcements has contributed to the stock’s 25% decline this year, following multiple years of double-digit gains.
https://www.msn.com/en-us/money/topstocks/ar-AA26n1U3
Hope they don’t build bunch of AI into the controls / systems like our cars are getting😀 !!!!!
I can see it now (2001 space odyssey with a little 2027 Ford thrown in):
Sorry, (Dave) we can’t shut down the power plant - your eyes are a little bloodshot and you have an elevated heart rate…..
They take 5 years to complete, China already built theirs first, before the need. Too late. Plus Data centers don't need water, total bullshit overgrab, again.
Shouldn't they be builting other types too, Coal, natural gas, Thorium etc.?
Walmart’s first nuclear deal shows demand beyond AI data centers
Walmart is signing a long-term contract to buy nuclear power for the first time ever, a promising sign that the industry’s future is supported by more than just the AI data center boom.
The retail giant agreed on Tuesday to buy power from a nuclear plant in Illinois owned by Constellation Energy for its operations in the area, including its stores and a high-tech warehouse in Illinois that stores and sorts perishable food.
Walmart will buy 176 megawatts of power from the plant over a 15-year period, or enough power to serve around 150,000 homes.
The Walmart deal will allow Constellation to expand the capacity of the Illinois plant by 30 megawatts, a process known as an uprate, which can involve replacing older equipment and improving efficiency.
The financial terms were not disclosed, but these types of deals tend to go for premium prices because they allow the buyer to lock in their costs over a long period.
Walmart, which has pledged to eliminate net carbon emissions from its U.S. operations by 2040, will also receive the environmental attributes associated with the nuclear energy, which generates electricity without carbon emissions.
Constellation stock was down 0.3% on Tuesday, outperforming the S&P 500’s decline.
The deal isn’t large enough to significantly boost Constellation’s growth trajectory, given that Constellation has 55 gigawatts worth of generating capacity and the Walmart deal represents less than 0.5% of that total.
Still, investors are eager to see Constellation sign more long-term power agreements, particularly with technology companies seeking electricity for AI data centers.
A lack of similar announcements has contributed to the stock’s 25% decline this year, following multiple years of double-digit gains.
https://www.msn.com/en-us/money/topstocks/ar-AA26n1U3
Presumably these will be the Rickover reactors that are in common use, not anything safe such as pebble bed reactors. There is no mention of where the water to cool them (If that is what will cool them) is coming from.
Closed loop.
Jeez....more mega DOE grandiosity. Just use the nuclear power plants from the carriers to create local power nodes. Could start in 60 days......