US Government Plans to Purchase 10 Nuclear Reactors with Japan's $550 Billion Investment Pledge

A cooling tower at a nuclear station in Scriba, New York.

The United States government is planning to purchase and operate up to 10 new large-scale nuclear reactors, potentially funded through Japan's $550 billion investment pledge, as part of a strategic initiative to address growing electricity demands.

Carl Coe, Chief of Staff at the Energy Department, revealed these details on Wednesday regarding the non-binding agreement made by Japan in October. The commitment includes potential funding of up to $80 billion specifically designated for new reactors manufactured by Westinghouse Electric Co.

Speaking at an energy conference hosted by the Tennessee Advanced Energy Business Council, Coe acknowledged the unusual nature of government intervention in private markets, stating: "The role of having the government involved in private markets is sacrosanct - you just don't do it. But this is a national emergency."

The Trump administration has expressed serious concerns about electricity shortages that could impact energy-intensive data centers powering artificial intelligence technologies and potential domestic manufacturing growth. President Trump declared an energy emergency on his first day in office, enabling expedited development of pipelines, power grid expansion, and support for struggling coal facilities.

The United States hasn't initiated construction on a large-scale nuclear power facility that reached operational status in over a decade. Many industry experts had considered such expensive projects unfeasible following Southern Co.'s experience with the Vogtle project, which exceeded its budget by $16 billion and fell seven years behind schedule.

However, the artificial intelligence boom has created renewed interest in large nuclear plants. Earlier this year, Xcel Energy's Chief Executive Officer Bob Frenzel suggested these projects might become viable again.

Questions remain about whether Japan's funding commitments, announced last month as part of a trade framework with the United States, will materialize. According to the White House, Japan has agreed to invest approximately $332 billion in U.S. energy projects. This pledge encompasses not only Westinghouse's new AP1000 reactors but also smaller nuclear reactor designs, new power plants, electric transmission projects, and pipelines.

The Trump administration's energy strategy includes directives aimed at accelerating nuclear power plant construction and providing government funding to support reactivating closed nuclear facilities. An executive order targets initiating construction of 10 large conventional reactors by 2030 – a goal industry experts describe as challenging but achievable.

Following Coe's announcement, shares of Oklo Inc., a U.S. developer of small modular reactors, increased by 6% by 1:57 pm in New York. Simultaneously, Canadian uranium mining company Cameco Corp. saw shares rise up to 5.7%, settling at a 3.3% increase by the same time.

The Energy Department did not immediately respond to requests for additional information. In his conference remarks, Coe noted that while many details remain undetermined, he expressed confidence that the nuclear reactor projects would move forward.

"We're trying to decide where to put them," Coe concluded.