U.S. Allocates $17.5 Billion to Accelerate 10 New Nuclear Reactors for Data Center Power Demand

The Trump administration has announced $17.5 billion in federal loans to accelerate the development of 10 new large nuclear reactors, driven by surging electricity demand from data centers. Energy Secretary Chris Wright cited "tremendous interest" from data center developers, utilities, and energy companies during an announcement on Tuesday. The reactors, which will use Westinghouse's AP1000 design, are expected to begin construction by 2030 and become operational in the mid-2030s.

Seven utilities and energy companies have signed letters of intent identifying potential sites for the reactors. The Energy Department plans to select five sites, each hosting two reactors, with federal financing used to purchase nuclear components with long lead times rather than direct construction loans. The department declined to name the utilities or states involved, stating it is premature to do so before final selections are made.

Wright emphasized that the project aims to build a robust supply chain and construction expertise, learning from the challenges faced by Georgia Power's Plant Vogtle—the only two large reactors built from scratch in recent decades. He attributed Vogtle's years-long delays and billions of dollars in cost overruns to poor planning, supply chain problems, and the COVID-19 pandemic. Wright stated that by building multiple reactors at various locations in volume, timing and costs are expected to significantly outperform the Vogtle experience.

The administration projects the loans could accelerate development by up to three years and reduce construction costs. Utilities and Westinghouse are expected to contribute up to $5 billion in equity across the five projects, with the federal government providing up to $3.5 billion in debt financing per project. President Trump has set a goal to quadruple domestic nuclear power production within 25 years, and the administration is also advancing smaller modular reactor technologies.

Data centers currently consume 4 to 5 percent of the nation's total electricity, with government estimates suggesting this share could nearly triple by 2028. Analysts predict overall U.S. electricity demand could rise as much as 20 percent in the next decade, with data centers a primary driver. Westinghouse's CEO Dan Sumner argued that industrialized nuclear power built at fleet scale is essential for the U.S. to maintain leadership in artificial intelligence and advanced manufacturing. Critics, however, contend that new nuclear reactors are too expensive and pose greater risks than other low-carbon energy alternatives.