The Dawn of a New U.S. Nuclear Energy Age: Reviving Plants and Meeting AI’s Energy Demands

The U.S. nuclear energy industry is experiencing a resurgence after years of stagnation, with major stakeholders in Washington, Silicon Valley, and beyond recognizing nuclear power as a key solution to meet the energy demands of data centers powering the AI revolution.

The Energy Department recently finalized a $1.5 billion loan to revive the Holtec Palisades nuclear plant in Michigan, marking the first restart of an American nuclear plant. Tech giant Microsoft and Constellation Energy also announced a $1.6 billion power purchase deal to restart a dormant reactor at Pennsylvania’s Three Mile Island plant in 2028.

At Climate Week in New York, 14 major banks and financial institutions pledged to support the COP28 climate goal of tripling global nuclear energy capacity by 2050. With U.S. electricity use on the rise due to new factories, data centers, electric vehicles, and hotter summers, nuclear energy is seen as an ideal solution to meet the growing demand.

While past hopes for a “nuclear renaissance” have fizzled, new proposals and projects are emerging, including startups deploying new nuclear technology and established power giants reviving existing plants. Despite financial hurdles and skepticism, the latest push for nuclear energy could lead to the revival of offline plants and increased output from existing reactors.

Experts are cautiously optimistic about the future of nuclear energy in the U.S., noting that it will take more than just Big Tech to drive a major expansion. The industry is closely watching for announcements from utility giants regarding new massive reactors and moves to extend the licenses of currently operating plants.

Overall, it’s a hopeful moment for U.S. nuclear power, with the potential for significant growth and innovation in the industry.