Nuclear Renaissance Funding
US Energy Department Offers $17.5B Loans to Support Ten New Nuclear Reactors
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Key Points
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Each Westinghouse AP1000 reactor is capable of generating about 1.1 gigawatts (GW) of electricity.
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Vogtle Units 3 and 4 became the first new US nuclear units in decades, coming online in 2023 and 2024.
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The package includes the AP300, a smaller modular reactor variant designed for faster deployment and lower upfront capital, alongside the AP1000.
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Cameco, a major uranium producer, and Brookfield Asset Management are key partners, bringing uranium supply capability and extensive infrastructure financing experience to the project.
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Industry analyst Dan Sumner described the plan as 'kick-starting fleet-scale nuclear development in the United States.'
The U.S. Department of Energy is offering $17.5 billion in low-interest loans to support ten new Westinghouse AP1000 nuclear reactors, the largest federal nuclear investment since the 1950s. Advisor Perspectives reports seven utilities have already signaled intent to participate, with construction expected to begin as early as late 2026 and the first reactors targeting grid connection around 2035.
The deal is part of a broader $80 billion initiative involving Westinghouse, Brookfield Asset Management, and Cameco. The three partners announced $62.5 billion in private capital commitments on June 22, 2026, one week after the DOE's official announcement. Industry analyst Dan Sumner called the plan "kick-starting fleet-scale nuclear development in the United States."
Ten Reactors, Five Sites, and an $80 Billion Bet
The DOE is structuring the program around five "paired projects" — two reactors per site. Each AP1000 generates about 1.1 gigawatts of electricity. Ten reactors together would add 11 gigawatts to the U.S. grid, enough to power roughly 8 million homes. Washington Examiner reports the loans carry interest rates estimated at about 1% above Treasury yields, far below typical commercial construction loan rates.
The government is not just lending money. It will take a 20% share of all cash distributions above the $17.5 billion loan threshold. The U.S. Treasury also holds warrants for a 5% stake in Westinghouse, exercisable if the company goes public. Crypto Briefing notes this structure is designed to share upside with taxpayers while attracting private capital at scale.
Vogtle's Shadow Looms Over the New Fleet
The AP1000 has a complicated history in America. Vogtle Units 3 and 4 in Georgia became the first new U.S. nuclear units in decades. But the project ran 10 years late and $17 billion over budget. That disaster sent Westinghouse into bankruptcy in 2017. Stock Titan reports Cameco and Brookfield acquired Westinghouse in a $7.9 billion deal in late 2023, after Vogtle's units proved the design technically sound.
The new financing package is built directly around avoiding a repeat. Low-interest loans reduce the cost of capital. Enhanced permitting could cut the licensing period from 60 months to as few as 24 months for proven designs. Building ten identical reactors — rather than one-off projects — is expected to cut costs 20–30% through supply chain standardization, a model borrowed from France's rapid nuclear expansion in the 1970s.
AI Hunger Drives the Political Push for Baseload Power
Rising electricity demand from data centers and AI workloads is the clearest force behind the program's urgency. AI data centers are projected to consume 9% of total U.S. electricity by 2030. Solar and wind cannot deliver round-the-clock power the way nuclear can. Guru Focus reports the DOE estimates the program will create 35,000 construction jobs and 5,000 permanent roles, giving the initiative rare bipartisan support in Congress.
Tech giants including Microsoft and Amazon have reportedly signaled interest in signing Power Purchase Agreements directly with the five project sites. The AP300 — a smaller modular reactor variant using the same AP1000 supply chain — is also part of the broader partnership. It is aimed at industrial heat applications and localized data center power, while the AP1000 fleet handles national grid demand.
Critics Warn of Vogtle-Scale Overruns if Projects Stumble
Not everyone is convinced. Taxpayers for Common Sense warned that "$17.5 billion is only the tip of the iceberg" if these projects face the same cost overruns seen at Vogtle and the abandoned V.C. Summer project in South Carolina. Fiscal critics argue that if the AP1000 were truly viable, Brookfield — which manages over $900 billion in assets — would not need taxpayer-backed loans to proceed.
Westinghouse CEO Patrick Fragman pushed back directly. "The AP1000 is now a proven commodity," he said. "By building ten identical units, we eliminate the 'first-of-a-kind' premiums that plagued previous decades." The DOE's program targets a Levelized Cost of Electricity — the true all-in cost per unit of power — of $60 to $75 per megawatt-hour for the new fleet, a benchmark that would make nuclear competitive with new gas plants.
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