A total of $17.5 billion in conditional loans for utilities and energy corporations to buy reactors and other facilities required to restore the U.S. commercial nuclear supply chain was announced by the U.S. Department of Energy on Tuesday.
Reporters were informed by U.S. Energy Secretary Chris Wright that the loans will assist the country in meeting its target of building ten new large-scale nuclear reactors by 2030, possibly expediting that timeframe by three years.
According to Wright, this has drawn a lot of interest from energy companies and data center hyperscalers, the tech behemoths that manage the world’s cloud and computing infrastructure.
This is because the rapid expansion of data centers to support American artificial intelligence capabilities has increased the country’s need for electricity.
“We are confident that these projects will be economic for utility shareholders, ratepayers, and hyperscalers,” Wright said to reporters.
Up to five loans, each supporting two 1.1 gigawatt Westinghouse reactors at a project site, will be supported by the Energy Department’s Energy Dominance Financing, formerly known as the Loan Programs Office.
Westinghouse will partner with up to five eligible utilities and energy businesses worldwide who will acquire the reactors and other “long-lead” supply chain needs at a fixed price.
Wright stated that seven utilities have expressed interest so far, but would not share their names or project sites.
Each project will be jointly owned by Westinghouse and a utility or energy company partner, who will each be required to commit $500 million before accessing DOE loan funds.
“This is not a risky venture,” Wright remarked.
