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 accelerate development of 10 new large nuclear reactors to meet skyrocketing demand for energy from massive data centers.
Energy Minister Chris Wright said there was “tremendous interest” from utilities and energy companies, as well as data center developers, to purchase the electricity. Construction of nuclear power plants could begin by 2030 and be operational by the mid-2030s, Wright and other officials said Tuesday.
“This is the beginning,” Wright said in a call with reporters. “We will move with players who are ready to stand up and move quickly. Do we think that once the supply chain is up and running, dozens of these will be built in the future? I would be very surprised if not.”
Most US nuclear power plants were built between 1970 and 1990. Only two new large reactors It was built from scratch in the United States in recent years. These two reactors at Georgia Power Co.’s Vogtle Plant 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 was hampered by poor planning, supply chain issues and the COVID-19 pandemic. But he said the reactor design was “robust and robust.”
“By building in volume and in multiple locations, we think we will create and sustain a large supply chain and build a lot of construction expertise,” Wright said. “We expect the timing and cost of these installations to perform much better than those built at Vogtle.”
The Department of Energy said seven utilities and energy companies signed letters of intent identifying the facilities. The agency plans to select five to house two reactors in each region. Federal funding will be used to purchase nuclear components with long lead times, not construction loans.
The ministry declined to name the utilities involved or the states in which they are located, saying it was too early until elections were held. He did not give a timeline for making those choices.
President Donald Trump aimed to quadruple domestic nuclear energy production over the next 25 years, and he achieved this goal. signed administrative orders to accelerate development. The administration is working to develop new nuclear technologies. like small modular nuclear reactors.
Westinghouse President and Chief Executive Officer Dan Sumner said industrialized nuclear power must be built at fleet scale for the United States to become a leader in artificial intelligence, advanced manufacturing and industries that will define the next century.
Critics of building more nuclear reactors say they are too expensive and riskier than other low-carbon energy sources.
Data centers use 4% to 5% of the country’s total electricity According to government forecasts in 2024, this rate could almost triple by 2028. Some analysts predict that electricity use nationwide will increase by as much as 20% over the next decade, and data centers are a big reason for that.
The Energy Department said the loans could accelerate development of these 10 reactors by up to three years and reduce construction costs. Its goal is for all 10 power plants to be under construction by 2030 and to begin providing energy in the mid-2030s.
The utilities and Westinghouse are expected to contribute up to $5 billion in total equity for the five, two-reactor project. Wright said his department provides up to $17.5 billion in loans to match equity capital, or $3.5 billion in loans per project. He said it was “very, very low risk to American taxpayers.”
___
McDermott reported from Providence, RI
___
The Associated Press’s climate and environment coverage receives funding from many private organizations. AP is solely responsible for all content. Find APs standards for working with philanthropists, a list of supporters and areas of funded coverage AP.org.
