U.S. Launches $80 Billion Nuclear Initiative to Meet Energy Needs

The United States government has initiated a significant investment of at least $80 billion to advance its nuclear energy capabilities. This strategic partnership involves the U.S. Department of Commerce, Westinghouse Electric Company, Cameco Corporation, and Brookfield Asset Management. The collaboration aims to establish large-scale nuclear power plants across the country, addressing the increasing demand for energy, particularly driven by the growth of artificial intelligence and data centers.

Under a binding term sheet signed in November 2023, the partnership is designed to accelerate the deployment of Westinghouse’s nuclear reactor technologies globally. The U.S. government will receive a participation interest, allowing it to claim 20% of cash distributions exceeding US$17.5 billion once construction agreements for new reactors are finalized.

Job Creation and Economic Impact

Westinghouse’s two-unit AP1000 projects are projected to create or sustain approximately 45,000 manufacturing and engineering jobs across 43 states. A comprehensive national deployment could generate over 100,000 construction jobs, significantly contributing to the U.S. economy. The initiative is expected to position the United States as a leader in the global nuclear energy sector while expanding the export of nuclear technologies.

Connor Teskey, President of Brookfield Asset Management, stated, “This partnership with the U.S. Government will help unlock the potential that Westinghouse and nuclear energy can play to accelerate the growth of artificial intelligence in the United States, while meeting growing electricity demand and energy security needs at scale.”

The strategic partnership aligns with an executive order issued by President Donald Trump in May 2025, which emphasized the role of nuclear energy in reducing dependence on foreign energy sources. This initiative follows a trend of revitalization in the nuclear power industry, with significant power purchase agreements (PPAs) being signed by major corporations.

Revitalizing the Nuclear Sector

In recent months, several key agreements have been made in the nuclear sector. In 2023, Constellation Energy entered into its largest power purchase agreement with Microsoft, facilitating the restart of the Three Mile Island Unit 1 nuclear plant. This year, Constellation further solidified its position by signing a 20-year agreement with Meta for energy from the Clinton Clean Energy Center in Illinois. Additionally, Talen Energy has partnered with Amazon to supply carbon-free energy to its data centers from the Susquehanna nuclear power plant in Pennsylvania.

The latest developments include an agreement between NextEra Energy and Google to relaunch the Duane Arnold Energy Center in Iowa, the state’s only nuclear facility. These agreements reflect a growing reliance on nuclear energy by large tech companies, which are increasingly recognizing its potential to provide stable energy sources amid rising electricity demands driven by AI and data center expansions.

Looking ahead, the nuclear industry is also exploring next-generation technologies, such as small modular reactors (SMRs), which are believed to offer simpler and more cost-effective solutions for energy production. Experts at the Goldman Sachs Global Institute have noted that global data center power demand is projected to surge by 165% by 2030, necessitating the development of new energy generation capacity to meet this demand.

Despite the United States maintaining the highest installed nuclear capacity globally, the country has faced challenges in its nuclear sector. Recent projects, such as the reactors at Georgia’s Plant Vogtle, have seen significant delays and cost overruns, with completion taking approximately 15 years and costs soaring to over $35 billion.

The $80 billion strategic partnership aims not only to bolster the U.S. nuclear industry but also to address the country’s energy requirements as the demand for AI and data-driven solutions continues to rise. According to the Goldman Sachs Global Institute, “success will depend on whether nations can build the infrastructure and partnerships necessary, with the right capital solutions in place, to support a robust nuclear industry.”