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Trump administration to loan $17 billion to build 10 nuclear reactors
CNBC • • business
Key Points:
- The U.S. Energy Department announced $17.5 billion in loans to accelerate the construction of 10 large nuclear reactors across five projects using Westinghouse's AP1000 design, each capable of generating 1.1 gigawatts of electricity.
- The loans aim to lower construction costs and speed up deployment by up to three years, financing complex components that typically have long manufacturing and delivery times.
- Westinghouse will collaborate with up to five utilities or energy companies, with seven potential partners already expressing interest, though final site locations remain undisclosed and are spread geographically.
- The funding will be provided to five special purpose vehicles, requiring Westinghouse and partners to contribute nearly $1 billion in equity per project to access the loans.
- The initiative is partly driven by demand from big tech companies seeking reliable, emissions-free power for data centers supporting artificial intelligence, with expectations of long-term power purchase agreements to support reactor construction.
