The U.S. Energy Department said Tuesday it will provide up to $17.5 billion in loans to jump-start construction of 10 large nuclear reactors, an effort to meet the soaring electricity demand from artificial-intelligence data centers. Energy Secretary Chris Wright, on a call with reporters June 23, cited “tremendous interest” from data-center developers that would buy the power, as well as utilities and energy companies.

“This is the start,” Wright said, adding he’d be “very surprised” if dozens more were not built once a supply chain is running.

The plan works like this. The government is offering as many as five conditional loans for utilities and energy companies that will each build two reactors, using designs from Westinghouse Electric Co. The loans run about $3.5 billion per project, with utilities and Westinghouse expected to contribute up to $5 billion in equity in total. Westinghouse has signed letters of intent with seven potential partners, each with an identified site, and the department declined to name the utilities until final selections are made.

The push responds to a power crunch. Data centers used 4% to 5% of the nation’s electricity in 2024, a share that could nearly triple by 2028, and some analysts expect total U.S. electricity use to rise as much as 20% over the next decade, with data centers a big reason. The country has struggled to add generation: most U.S. nuclear plants were built between 1970 and 1990, with Georgia Power’s Plant Vogtle expansion a rare — and famously over-budget — recent example.

For the nuclear industry, this could be a turning point. Building large reactors in the U.S. has lost money for decades, plagued by overruns and delays. Wright said the loans could speed each project by up to three years and lower construction costs, with a goal of having all 10 under construction by 2030 and generating power in the mid-2030s. He called the financing “very, very low risk to the American taxpayers.”

That claim is where the debate begins. Government-backed nuclear financing carries real risk: the last generation of U.S. reactors ran years late and billions over budget, and taxpayers or ratepayers often covered the gap. Supporters counter that nuclear offers what data centers need most — large amounts of steady, around-the-clock power that does not depend on weather, unlike wind or solar. For tech companies racing to power AI, reliable supply matters more than almost anything.

The move also fits a broader political calculation. Rising electricity bills have become a flashpoint before the November midterms, and the administration has searched for ways to expand supply without further inflaming household costs. By steering new generation toward data centers — and pressing tech firms to help pay for it — the White House is trying to satisfy AI’s appetite for power while shielding consumers from the bill.

The announcement came a day after Trump signed an executive order on quantum computing, part of a wider effort to court the tech sector.

The business ripple effects could be significant. A revived reactor program would mean orders for Westinghouse, work for construction firms and equipment makers, and thousands of skilled jobs in the regions where plants rise. It would also deepen the financial ties between Big Tech and the power industry, as data-center operators increasingly sign long-term deals to buy electricity from specific plants.

Whether the projects come in on time and on budget — the chronic weakness of American nuclear construction — will determine if Tuesday’s announcement is a genuine revival or another costly false start.

JBizNews Desk | New York

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