That year, the administration introduced a series of subsidies for struggling coal-fired power plants and nuclear power plants, which were facing increasing price pressure from gas and cheap renewable energy. This plan will cost taxpayers billions of dollars. It didn’t work.
In the years that followed, the nuclear industry continued to struggle with setbacks. Three nuclear plants have closed since 2020, while construction of two of only four reactors started since 2000 was halted after a political scandal that cost a decade and billions of dollars. Coal, meanwhile, continues its long-term decline: It comprises only 17 percent of the U.S. electricity mix, down from a peak of 45 percent in 2010.
Now both these energy sources are getting a chance again. The difference this time is the ongoing discussion around AI, but it’s not clear that the results will be much different.
Through 2025, the Trump administration is not only engaged in promoting nuclear, but has positioned it specifically as a solution to AI’s energy needs. In May, the President signed a series of executive orders aimed at promoting nuclear power in the US, including an order to build 10 new large reactors by 2030. The May executive orders that resulted in the creation of a pilot program at the Department of Energy — along with a serious overhaul of the country’s nuclear regulator — have already led to success for small startups. Energy Secretary Chris Wright said in September that AI progress “will be accelerated by the rapid opening up and deployment of commercial nuclear power.”
The administration’s pressure is reflected in investments by tech companies. Giants like Google, Amazon and Microsoft have struck several deals with nuclear companies to power data centers in recent years; Microsoft also joined the World Nuclear Association. With many retired reactors in the U.S. being considered for restarting – including two of the three that have shut down in the past five years – the tech industry is supporting some of these arrangements. (This includes Microsoft’s high-profile restart of the infamous Three Mile Island, which is also getting a $1 billion loan from the federal government.) It’s a good time for both the private and public sectors to promote nuclear power: Public support for nuclear power is the highest it has been since 2010.
despite all This, coupled with the practicality of nuclear power, leaves its future in doubt. Most of the cost of nuclear power comes not from tough regulations but from construction. Critics are wary of rising valuations for small modular reactor companies, especially those with deep ties to the Trump administration. The $80 billion deal the government signed with reactor giant Westinghouse in October is light on details, leaving more questions than answers for the industry. And despite high-profile technology deals that promise to get the reactors up and running within a few years, the timeline remains tricky.
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