Trump DOE loans $5B to nuclear plants that will power data centers

The Trump medication is giving Constellation Energy $5 cardinal successful loans to grow atomic generating capableness astatine 8 powerfulness plants by 1.1 gigawatts.

Most oregon each of the further powerfulness from 7 of those facilities has already been bought by Google, Meta, oregon Amazon.

Constellation said it plans to usage the financing to “uprate” 11 existing reactors, an manufacture word for expanding capableness astatine a reactor, often by utilizing much highly enriched uranium and by upgrading instrumentality to grip the accrued powerfulness levels.

The vigor institution said it had already committed to spending much than $7 cardinal to adhd 1,080 megawatts of atomic capableness to present powerfulness to Google, Amazon, and Meta. The indebtedness commitment, which has yet to beryllium finalized, “could little financing costs” for the projects, Constellation said successful a press release.

The 8 powerfulness plants see six successful Illinois (Braidwood, Byron, Clinton, Dresden, LaSalle, and Quad Cities), 1 successful Maryland (Calvert Cliffs), and 1 successful Pennsylvania (Limerick). 

Google is already the confirmed buyer of further powerfulness from the Pennsylvania works and 4 Illinois powerfulness plants, portion Amazon is buying energy from the Maryland works and Meta is efficaciously buying the full Clinton powerfulness plant successful Illinois.

On Tuesday, the Department of Energy touted the indebtedness arsenic supporting “affordable, reliable powerfulness to American homes and businesses,” though determination is nary grounds that the caller atomic capableness volition little prices for residential ratepayers. Constellation’s announcement does not accidental whether the projects volition support oregon little energy rates, and the institution would not corroborate the government’s assertion to TechCrunch.

Hyperscalers, including Google, Amazon, and Meta, person been scouring the grid for further capableness to enactment their AI information centers. Tech companies are paying handsomely for energy, committing tens of billions of dollars implicit the coming years. Given that powerfulness has go a competitory advantage, that estimation is astir apt connected the debased end.

By lowering the outgo of superior for the upgrades, the Department of Energy’s loans could boost Constellation’s bottommost line, that of the hyperscalers — oregon both.