Post by : Badri Ariffin

The United States is set to embark on one of its most ambitious energy moves in decades: the construction of up to 10 new large nuclear reactors, potentially funded by Japan’s staggering $550 billion investment pledge. The plan signals a bold step to meet surging electricity demand driven by AI data centers and a renewed push for domestic manufacturing.

Officials revealed that Japan’s commitment, announced last October, could allocate as much as $80 billion specifically for Westinghouse Electric Co.’s new AP1000 reactors. In addition, the package includes funding for smaller nuclear reactors, new power plants, transmission lines, and pipeline infrastructure, reflecting a comprehensive approach to energy growth.

The move comes after more than a decade of stagnation in US nuclear construction. The industry faced setbacks due to high costs and delays, with Southern Co.’s Vogtle project running $16 billion over budget and seven years behind schedule. Yet, the rising electricity needs of AI-driven industries and a revived interest in secure domestic energy sources have reignited discussions around nuclear energy.

Xcel CEO Bob Frenzel recently suggested that large-scale nuclear projects could once again become viable, spurred by the changing energy landscape. The Trump administration has framed nuclear expansion as critical to national energy security, pushing executive orders to fast-track construction and support reopening previously closed plants.

The government’s plan includes placing 10 large reactors under construction by 2030. While ambitious, it highlights a willingness to take unprecedented steps to ensure electricity supply keeps pace with technological and industrial growth.

Stocks in related sectors responded positively. Oklo Inc., a developer of small modular reactors, saw shares rise 6%, while Canadian uranium miner Cameco Corp. gained over 5%. Analysts note the move could trigger broader momentum in nuclear investments, though logistical and regulatory hurdles remain significant.

With the project still in its early stages, precise locations and timelines for the reactors are undecided. But the initiative underscores a renewed US focus on nuclear power as a central pillar of its energy strategy in the 2020s.

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