US Launches $17.5B Nuclear Expansion to Fuel Data Centers

An initiative of $17.5 billion in funding taken by the Trump administration to accelerate the development of 10 large-scale nuclear reactors to fuel electricity demand driven by data centres.

By Indrani Priyadarshini

on June 25, 2026

The Trump administration has announced a $17.5 billion funding initiative to accelerate the development of 10 large-scale nuclear reactors to fuel electricity demand driven by data centres. Speaking about the initiative, US Energy Secretary Chris Wright said there is “tremendous interest” from data centre developers, utilities and energy companies seeking reliable, long-term power sources. The proposed reactors are expected to begin construction by 2030 and could become operational by the mid-2030s.

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“This is the start,” Wright said. “We are 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 would be very surprised if there were not.”

Nuclear Expansion Backed by Data Centre Demand

The investment comes as power consumption from large-scale data centres continues to surge, fueled by growing adoption of artificial intelligence, cloud computing, and digital services. Industry leaders have increasingly turned to nuclear energy as a dependable source of carbon-free electricity capable of supporting around-the-clock operations.

According to the Department of Energy, the funding will be provided through loans designed to accelerate project timelines by as much as three years while helping reduce overall construction costs. The administration’s goal is to have all 10 reactors under construction by 2030, with electricity generation beginning in the mid-2030s.

AP1000 Reactors Chosen for New Projects

The planned reactors will use Westinghouse’s AP1000 design, a technology already deployed in the United States. The decision reflects an effort to rely on an established reactor model rather than introduce a new design during the initial phase of expansion. Most of America’s existing nuclear power plants were built between the 1970s and 1990s. In recent decades, only two new large reactors have been constructed from scratch in the country—both located at Georgia Power’s Plant Vogtle.

However, the Vogtle expansion faced significant challenges, including years of delays and billions of dollars in cost overruns, highlighting the financial and logistical complexities associated with large nuclear projects.

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Trump’s Long-Term Nuclear Energy Vision

President Donald Trump has set an ambitious target of quadrupling domestic nuclear power production over the next 25 years. To support that objective, he has signed executive orders intended to streamline approvals and accelerate nuclear development across the country. Alongside large reactors, the administration is also promoting emerging technologies such as small modular reactors (SMRs), which are viewed as a potential solution for faster and more flexible deployment of nuclear energy.

Under the current plan, utilities and Westinghouse are expected to collectively contribute up to $5 billion in equity across five projects, each involving two reactors. The initiative marks one of the most significant federal efforts in decades to expand US nuclear power generation, positioning nuclear energy as a key pillar in meeting future electricity needs from AI-driven industries and data centre expansion.

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