Nuclear Power to Receive Majority of Energy Department Loan Funds as Trump Administration Accelerates New Reactor Projects
Nuclear power is set to receive most of the funding from the Energy Department’s loan office as the Trump administration pushes to rapidly initiate construction on new reactors, Energy Secretary Chris Wright announced on Monday.
“We have significant lending authority at the loan program office,” said Secretary Wright during a conference hosted by the American Nuclear Society in Washington, D.C. “By far the biggest use of those dollars will be for nuclear power plants to get those first plants built.”
In May, President Trump signed an executive order directing the U.S. to break ground on 10 large nuclear reactors by 2030, signaling a strong government commitment to expanding nuclear energy capacity.
Private Sector Investments Fueling Nuclear Expansion
Major technology companies including Alphabet, Amazon, Meta Platforms, and Microsoft are investing billions of dollars to restart old nuclear plants, upgrade existing facilities, and deploy new reactor technologies to meet the rising electricity demands from artificial intelligence (AI) data centers.
Wright highlighted the growing role of AI-driven electricity needs in attracting capital. “I expect electricity demand from AI to attract billions of dollars in equity capital to build new nuclear capacity from very creditworthy providers,” he said.
The Energy Department is prepared to match private investments with low-cost debt financing from its loan office, potentially leveraging private funds by as much as four to one.
Looking towards the future, Wright expressed optimism: “When we leave office three years and three months from now, I want to see hopefully dozens of nuclear plants under construction.”
Westinghouse Deal Paves the Way for Major Nuclear Projects
Last month, the Trump administration finalized a deal with Westinghouse’s owners to invest $80 billion in constructing nuclear plants across the United States.
Westinghouse, owned by uranium miner Cameco and Brookfield Asset Management, has developed the AP1000 reactor — a modern design capable of powering more than 750,000 homes.
In July, Westinghouse CEO Dan Sumner affirmed the company’s commitment to President Trump’s goal, stating they would meet the call to build large new plants using the AP1000 design.
Cameco’s Chief Operating Officer Grant Isaac also noted during Cameco’s third-quarter earnings call that the U.S. government has various financing options available to support Westinghouse reactor projects, including the Energy Department’s loan office.
“We’re assured that there is a lot of interest in investing this minimum $80 billion in order to begin the process,” Isaac told investors.
Potential Public Offering and Past Challenges
Under the terms of the October agreement, Westinghouse could spin off as a separate publicly-traded company, with the U.S. government as a shareholder.
However, the company has faced challenges in the past. Westinghouse went bankrupt in 2017 due to cost overruns on major nuclear projects in Georgia and South Carolina.
Two AP1000 reactors began service at Plant Vogtle in Georgia in 2023 and 2024, but these projects were completed years behind schedule and billions of dollars over budget. Meanwhile, the South Carolina project was ultimately cancelled.
Despite these hurdles, the recent government backing and private sector investment signal renewed momentum for nuclear power in the U.S., aiming to meet future energy demands and strategic goals.
https://www.cnbc.com/2025/11/10/nuclear-power-energy-department-chris-wright-loan-westinghouse-ai-data-center.html