Entering the Nuclear Renaissance: Policy and Domestic Fuel Cycles

The nuclear sector stands on the cusp of a significant transformation driven by policy advancements and expanding market dynamics.  

Governments, industry players, and technology companies are aligning their efforts to accelerate the deployment of innovative nuclear solutions, aiming to address climate concerns, ensure energy security, and meet the growing demand for reliable power to support the transformation to artificial intelligence (AI). 

Prominent tech firms are actively engaging in the next-generation reactor market, including small modular reactors (SMR), recognizing the potential of nuclear energy for sustainable development. 

During CERAWeek 2025, 14 global tech companies—including Amazon, Meta, and Google—signed the Large Energy Users Pledge, joining 140 nuclear industry companies and more than 30 countries in support of the World Nuclear Association’s goal to triple global nuclear capacity by 2050.  This pledge emphasizes nuclear’s role beyond traditional grid electricity, highlighting its ability to provide continuous, cost-competitive energy for large-scale industrial and data center operations.

A Goldman Sachs analysis estimates that tech companies would need 85-90 gigawatts (GW) of new nuclear capacity to support their AI data centers.  Still, only about 10% of that will be available by 2030.  In the past year, tech companies have announced plans to add nuclear power as a means to advance energy-hungry AI technology. 

Some of the major recent deals include:

• Amazon is collaborating with Energy Northwest to develop four SMRs in Washington capable of generating up to 320 MW, which could meet the energy needs of hundreds of thousands of homes.  In Virginia, Amazon is exploring additional SMR projects closely tied to existing nuclear infrastructures to bolster energy resilience.
• Microsoft and Constellation Energy signed a 20-year power purchase agreement to resurrect a unit of the Three Mile Island nuclear plant in Pennsylvania in 2027 in order to directly power a Microsoft cloud computing and artificial intelligence data center with 835 MW of electricity.
• Microsoft signed an agreement to purchase electricity from Helion Energy’s first fusion power plant, scheduled for deployment in 2028.  On July 30, 2025, Helion announced it had commenced construction at its site in Malaga, Washington.

What are the key policies shaping the nuclear renaissance?

Policy Developments

The White House aims to quadruple U.S. nuclear power capacity to 400 GW by 2050. Bipartisan federal and state legislatures are actively promoting nuclear energy through legislation, incentives, and initiatives.

Federal Developments

In 2024, Congress enacted the bipartisan ADVANCE Act, which aims to expedite the development and deployment of advanced nuclear technologies.  This legislation primarily focuses on streamlining the licensing process overseen by the U.S. Nuclear Regulatory Commission (NRC), ensuring a more efficient and timely process, and establishing an expedited review procedure for qualifying new reactor applications, which could potentially reduce project approval timelines.

In the first half of 2025, President Trump signed four executive orders aimed at quadrupling the U.S. nuclear power capacity to 400 GW by 2050.[1]  Building upon last year’s enactment of the ADVANCE Act, one executive order establishes deadlines for the NRC to consider applications for both new reactor licenses and license renewals.  The executive order also directs NRC, working with the Office of Management and Budget and the Department of Government Efficiency, to review existing Commission regulations.

One of the executive orders also directs DOE and the Department of Defense (DOD) to collaborate on constructing nuclear reactors on federally owned lands and military bases. Specifically, DOE is required to “utilize all available legal authorities” to support the operation of privately funded advanced reactor technologies at Department sites to power AI infrastructure or other critical or national security needs.  The DOD is also required to support the deployment of advanced reactors, with the goal of commencing reactor operation at a military base by September 30, 2028.

Other executive orders work to revitalize the domestic fuel cycle, promote U.S. nuclear exports, and enhance research efforts on next-generation nuclear technologies.

Meeting a deadline set in one of President Trump’s recent executive orders, the DOE revised its  National Environmental Policy Act (NEPA) regulations, removing most procedures from the Code of Federal Regulations into a separate guidance document and updating categorical exclusions, including actions related to nuclear permitting.

Following President Trump’s executive order, Westinghouse announced plans to begin construction on ten AP1000 reactors in the U.S. by 2030. Leveraging the innovative advantages of AI, Westinghouse announced a strategic partnership with Google Cloud’s HiVE™ and bertha™ nuclear AI solutions to enhance the construction of Westinghouse’s AP1000 pressurized water reactors (PWR) and improve operations in its existing nuclear fleet.

The passing of the “One Big Beautiful Bill Act” (OBBBA) extended the recent policy momentum for nuclear energy.[2] In contrast to wind and solar, the OBBBA maintained the Section 45Y Production Tax Credit and Section 48E Investment Tax Credit for nuclear energy, as well as for geothermal, hydropower, and storage.  In addition, the Act added a new nuclear “energy community” bonus credit under Section 45Y (equal to 10% of the credit amount otherwise available) for advanced nuclear facilities situated in a metropolitan statistical area that has (or at any time after December 31, 2009, had) 0.17% or greater direct employment directed to the advancement of nuclear power.  The OBBBA also reconfigured DOE’s Section 1706 loan program, providing an additional $1 billion in credit subsidy funding that could support the deployment of new nuclear reactors.

In addition to policies to support new reactor deployment, U.S. policymakers have focused on rebuilding the domestic front end of the fuel cycle.  Last year, the United States enacted the Prohibiting Russian Uranium Imports Act, establishing a ban on the import of low-enriched uranium (LEU) from Russia, while simultaneously launching a $2.7 billion Request for Proposals (RFP) to stimulate domestic production of LEU and HALEU.  For certain small modular reactors, there is no commercial supply of HALEU outside of Russia, so the development of a domestic supply will be critical to deploying these reactors. 

State Developments

The National Conference of State Legislatures reports that over 300 nuclear bills have been introduced this year, with 25 states actively promoting nuclear energy as a clean, reliable, and strategic power source.  These states are forming task forces, easing regulatory barriers, and providing incentives through policies such as permitting reforms, workforce development initiatives, and funding for fusion research.  For example, Indiana has implemented a 20% tax credit for nuclear manufacturing, Utah Governor Spencer Cox has advanced a comprehensive nuclear agenda, and Tennessee has invested over $150 million in research and development, as well as workforce training.

Significant developments include Texas passing House Bill 14 on June 12, 2025, which created the Texas Advanced Nuclear Energy Office and allocated $350 million for a grant program to bolster the state’s nuclear manufacturing capacity, rebuild the domestic fuel cycle supply chain, and support workforce development.  Additionally, on June 23, 2025, New York Governor Kathy Hochul directed the New York Public Authority to develop at least one new zero-emission advanced nuclear power plant with a capacity of at least one gigawatt by 2040.  Overall, states increasingly see nuclear energy as vital for advancing energy security, economic growth, and environmental stability.