U.S. nuclear revival spurred by AI demand and federal support

A significant resurgence in nuclear energy is underway in the United States, driven by surging electricity demand from artificial intelligence data centers and robust federal policy support. This revival is marked by efforts to restart retired plants, a push to construct new large-scale reactors, and major investments in next-generation small modular reactor (SMR) technology.

The rapid expansion of AI is fundamentally altering U.S. electricity demand. Data centers, which require constant, reliable power, could see their share of national electricity consumption rise from about 5% today to as much as 17% by 2030. This has created an urgent need for carbon-free, around-the-clock power sources. Technology firms like Microsoft, Google, and Meta are actively securing future supplies by signing long-term power purchase agreements for nuclear-generated electricity and investing in advanced reactor companies.

In response, the federal government has set ambitious goals, including a target to quadruple U.S. nuclear capacity to 400 gigawatts by 2050. To accelerate development, the administration has committed more than $80 billion in funding to support reactor construction and has taken...