Trump Nuclear Power Plans Target Data Centers And National Security

Forbes

6 days ago

(Photo by Andrew CABALLERO-REYNOLDS / AFP) (Photo by ANDREW CABALLERO-REYNOLDS/AFP via Getty Images)
President Trump signed two executive orders on May 23 intended to speed up the development of nuclear power in the United States. With the demand for alternate sources of electrical power rising to fuel the exponential growth in artificial intelligence applications, the government is using its fiscal and regulatory muscle to accelerate nuclear energy as a major contributor to domestic power supply.
The Trump administration is taking a two-pronged approach to promote the nuclear energy industry. The first executive order, Ordering the Reform of the Nuclear Regulatory Commission, aims to streamline nuclear development and reduce regulatory burdens and barriers.
The order targets licensing reform by directing the Nuclear Regulatory Commission to complete rulemaking for new reactors within 18 months and 12 months for existing ones. The government also highlights the need for cultural change at the NRC, claiming their current risk-averse approach should better balance safety concerns with the benefits of nuclear energy. "The NRC has failed to license new reactors even as technological advances promise to make nuclear power safer, cheaper, more adaptable, and more abundant than ever," the order states.
Capacity goals are another element of the initiative. One goal is to quadruple U.S. nuclear energy usage from approximately 100 GW in 2024 to 400 GW by 2050. This goal would be met by promoting new technologies and reactivating existing or partially completed nuclear facilities.
The second executive order, Deploying Advanced Nuclear Reactor Technologies for National Security, accelerates the development and deployment of advanced nuclear technologies to enhance national security and energy independence.
The order directs the Department of Defense to deploy nuclear energy at military bases, with the first reactor running by 2028. It also promotes private sector investment in advanced nuclear technologies 'by aligning incentives across the Federal Government to fully leverage federally owned uranium and plutonium resources declared excess to defense needs, related nuclear material, supply chain components, and research and development infrastructure.'
Another stated objective is regulatory coordination, requiring the Departments of Defense and Energy to optimize resource allocation and risk management.
Trump is not the first president to try to advance nuclear energy. In July 2024, President Biden signed the ADVANCE Act into law, streamlining licensing for advanced reactors, reducing fees, and incentivizing deployment.
The current administration's approach is different. Trump's approach revolves around national security and is led by executive orders. Speed of deployment and deregulation are emphasized. Biden's approach was legislative, climate-focused, and centered on investment and bipartisan reforms to modernize nuclear power.
While proponents argue that these measures will reduce regulatory delays and bolster U.S. technological leadership, there will no doubt be concerns about potential compromises to safety and the undermining of regulatory independence.
According to the executive order, 'Advanced nuclear reactors include nuclear energy systems like Generation III+ reactors, small modular reactors, microreactors, and stationary and mobile reactors that have the potential to deliver resilient, secure, and reliable power to critical defense facilities and other mission capability resources.'
Generation III+ reactors are large-scale power plants with enhanced safety features, longer operational lives, and improved efficiency over earlier designs. For example, the Westinghouse AP1000 features passive safety systems that rely on natural forces like gravity and convection to cool the reactor in emergencies rather than active mechanical pumps or human intervention.
Small modular reactors, known as SMRs, are compact, factory-built nuclear units that can be used individually or in clusters. They are designed to supply power for industrial operations, supplement existing electricity grids, or replace older fossil fuel power plants.
Microreactors are even smaller, portable systems designed for fast deployment in remote or emergency settings such as military bases or disaster zones.
Stationary reactors are fixed installations that provide consistent power to critical infrastructure such as data centers. In contrast, mobile reactors offer flexible, on-demand energy that can be moved to support temporary operations.
The executive orders should foster growth in new nuclear technologies that are currently in various stages of development in other parts of the world.
Pushing forward with nuclear power makes sense from a practical and strategic perspective. Industry consultant ICF predicts that U.S. electricity demand will grow by 25% by 2030 and by 78% by 2050, relative to 2023. Given the U.S.'s desire to dominate artificial intelligence, growing the electrical supply from all available sources is deemed necessary.
Rising power demand in not just a U.S. phenomenon. Global energy demand is accelerating, and many other countries use nuclear energy to meet climbing domestic demand. For example, France, with nearly 60 operable reactors, receives about 62% of its electricity from nuclear power.
More plants are on the way. According to the World Nuclear Organization, approximately 100 power reactors are currently in the planning stage, with more than 300 additional reactors proposed.
Despite global industry growth, recent U.S. efforts to expand into newer nuclear technologies have struggled. The collapse of NuScale Power's deal with the Utah Associated Municipalities Power Systems is a notable example. The project's budget was initially projected at $3.6 billion but grew to $9.3 billion before it was terminated due to lack of demand as the estimated cost of electricity rose, making it less competitive compared to other energy sources.
The project's failure was a major disappointment to the nuclear technology industry, which was struggling for a breakthrough. "The termination of NuScale's contract signals the broader challenges of developing nuclear energy in the United States," said Dr. Edwin Lyman, Director of Nuclear Power Safety at the Union of Concerned Scientists. "Placing excessive reliance on untested technologies without adequate consideration of economic viability, practicality, and safety concerns is irresponsible and clearly won't work," he added.
New nuclear technologies, such as small modular reactors, face challenges similar to those that solar power encountered in its early years. High upfront costs, regulatory hurdles, and limited public acceptance contribute to the slow adoption. Like early solar, these new nuclear technologies are currently seen as expensive and complex compared to more established energy sources and need economies of scale, policy support, and technological innovation to gain market share. However, nuclear technology must also overcome stronger political resistance and concerns over safety and waste, which solar did not face to the same extent.
Despite the prior struggles for the industry, financial markets responded well to the news. The VanEck Uranium and Nuclear ETF, ticker NLR, climbed 10% after the announcement. Compact reactor maker Oklo rose 23% and Centrus Energy, a supplier of enriched uranium fuel for civilian nuclear power reactors, jumped 21.6%. Shares of NANO Nuclear Energy, which is developing new technology reactors in addition to a high-assay, low-enriched uranium fuel processing facility, soared 30%.
Stock market optimism aside, implementing the nuclear renaissance will no doubt prove challenging. While regulatory reform will speed up approvals, questions will emerge surrounding safety. The consequences of even a minor nuclear accident would likely lead to a reversal in public support.
The executive orders address the entire nuclear supply chain from mining to waste storage. Still, the U.S. currently relies heavily on imported uranium, including from geopolitical rivals. While the new directives have provisions to increase domestic uranium production, establishing a self-sufficient supply chain will require significant time and investment, potentially delaying reactor deployments.
Trump's executive orders should help mitigate some of the forces holding back the advancement of nuclear energy. But as with many of President Trump's other executive actions, they may be easier to order than execute. Most people like the idea of nuclear power—as long as reactors are placed in somebody else's backyard.