With U.S. utility integrated resource plans reflecting ever-expanding growth trajectories and planned capacity additions, nuclear power is increasingly moving from a future consideration to a near‑term planning priority.
Why nuclear power is serving intensifying energy demand
Drivers of the explosive demand for power include electrification and efforts to increase manufacturing and industry, but most significant is the proliferation of AI and data centers. The U.S. Department of Energy has estimated that data centers consumed approximately 4.4% of electricity in the U.S. in 2023 – about three times more than they did 10 years earlier – and that the amount could triple to 12% by 2028.
Traditional and renewable sources of power can’t fully meet the urgency of the moment. Turning to nuclear power, utilities know it is a proven baseload power solution. Its steadfast reliability matters particularly to AI/data centers that are typically designed for continuous 24/7 operation with high availability requirements.
In addition to being a low-carbon energy source, U.S. nuclear power has a strong operational safety record. Regulatory oversight is strict, and safety and quality standards are extraordinarily rigorous across the industry.
It’s important to recognize, too, that the nuclear power sector has not been idle, simply waiting for this renewed interest. Decades of ongoing modernization and technological refinement have consistently enhanced plant performance and operational resilience.
Investing in nuclear power now – for today and tomorrow
In the near-term, utilities can maintain baseload stability via license extensions to keep existing reactors in operation beyond their original timelines, support plant restarts where viable, and implement modifications and power uprate projects to boost performance and output.
These moves build capacity while utilities scale up the next chapter of nuclear power: advanced reactor solutions.
Looking forward, one market signal is clear. Nearly half of utility leaders surveyed for the Black & Veatch 2025 Electric Report said they view small modular reactors (SMRs) as a cornerstone of future investment strategies. SMRs are designed for incremental, scalable deployment at or near existing utility and industrial locations to provide firm, around-the-clock capacity. Their modular approach is intended to reduce on-site construction time and improve schedule predictability compared with traditional gigawatt-scale projects.
Additionally, new large reactors are being revisited as a long-term source of utility-scale firm capacity. Federal incentives and financing tools are helping rebuild momentum for new large-reactor deployment. For utilities evaluating new large reactors, the current window presents a strategic opportunity to move from interest to readiness. Early actions such as site selection, transmission and interconnection planning, cooling water assessments, environmental reviews, and licensing strategy development can significantly de‑risk future projects. Prequalification of long‑lead equipment suppliers, construction partners and experienced EPC teams is also essential, particularly as global demand for nuclear increases.
Planning for both technologies provides flexibility. SMRs can scale capacity in smaller increments while large units can anchor bulk, system-level dependable power, together providing the low-carbon capacity needed to ensure reliability as demand grows.
Managing the challenges of nuclear power today and unlocking future deployment
The path forward for nuclear investment is not without its challenges. SMRs and new large reactors face significant capital requirements. They must maintain disciplined cost and schedule control, particularly as the industry works through first‑of‑a‑kind deployments and scaled re‑entry into new construction. Government‑backed initiatives — coupled with lessons learned from prior first‑of‑a‑kind projects — are helping reset expectations around schedule discipline, constructability and risk allocation. Meanwhile, success also depends on strengthening a domestic and global nuclear supply chain and expanding a skilled workforce capable of supporting design, construction and long‑term operations.
These realities make bridging strategies essential. By extending the life and output of the existing nuclear fleet through license extensions, power uprates, and restarts, utilities can add near‑term capacity while methodically preparing for new nuclear generation.
