U.S. Department of Energy Announces $17.5 Billion in Conditional Loans for Ten New Nuclear Reactors
The DOE aims to have all ten reactors under construction by 2030 and operational by the mid-2030s.
The U.S. Department of Energy (DOE) announced on August 13, 2025, that it will provide up to $17.5 billion in conditional loans to support the construction of ten large nuclear reactors across five projects in the United States. The loans are specifically intended to fund the procurement of long-lead components for reactors using the Westinghouse AP1000 design.
Funding Structure and Requirements
- Loan Allocation: The $17.5 billion in loans will be distributed to five special purpose vehicles (SPVs), each of which will host two reactors.
- Equity Requirements: To access the loan funds, Westinghouse and its project partners must contribute approximately $1 billion in equity per SPV. Total equity contributions across the five projects are estimated at up to $5 billion.
- Financed Items: The loans are designated for the purchase of long-lead nuclear components, such as reactor vessels and steam generators, rather than for full construction costs.
Project Details and Timeline
- Reactor Design: All ten reactors will use the Westinghouse AP1000 design, which generates 1.1 gigawatts of electricity per unit. This is the only large reactor design currently licensed for operation in the United States.
- Partner Selection: Westinghouse has signed letters of intent with seven potential utility or energy company partners. The DOE will select five specific project sites from these partners, each hosting two reactors.
- Geography: The DOE stated that potential sites are geographically spread across the country but did not disclose specific locations.
- Timeline: Energy Secretary Chris Wright stated that the goal is for all ten reactors to be under construction by 2030 and operational by the mid-2030s. The loans are expected to accelerate construction timelines by up to three years.
Industry and Policy Context
- Executive Order: The loans support an executive order issued by President Donald Trump in May 2025, which called for the construction of ten large reactors by 2030, as well as a broader goal of quadrupling U.S. nuclear capacity to 400 GW by 2050.
- Previous Construction: The AP1000 design was previously used for the two reactors completed at Plant Vogtle in Georgia. That project experienced significant delays and cost overruns. Energy Secretary Wright stated that the Vogtle project's issues stemmed from "first-of-a-kind" planning challenges, supply chain disruptions, and the COVID-19 pandemic, but asserted that the AP1000 design is "robust and sound." He stated that the current program expects improved timing and costs through volume building and supply chain establishment.
- Electricity Demand: The announcement occurs amid projections of rising electricity demand. Data centers accounted for 4-5% of U.S. electricity consumption in 2024, a share that some analysts project could nearly triple by 2028. Broader projections suggest national electricity use could rise by 20% in the next decade. Greg Beard, head of the DOE loan office, stated that the administration anticipates large technology companies will sign long-term power purchase agreements for the projects.
Key Statements
Energy Secretary Chris Wright: Stated that the loans will lower construction costs and accelerate deployment, supporting the President's executive order to boost the nuclear industrial base. He noted that the program has attracted interest from data center operators and energy companies.
Dan Sumner, Westinghouse President and CEO: Stated that industrialized nuclear power must be built at fleet scale for the U.S. to compete in artificial intelligence and advanced manufacturing.
Critics: Some have argued that nuclear reactors are too expensive and carry higher risks compared to other low-carbon energy sources.
Market Reaction
Following the announcement, shares of Cameco Corp., the parent company of Westinghouse, rose by more than 1%.
Additional Context: Other Nuclear Developments
Separately, three previously shuttered nuclear plants—Palisades, Three Mile Island, and Duane Arnold—are expected to resume operations.