The Department of Energy just dropped $800 million on small nuclear reactors, handing equal $400 million grants to the Tennessee Valley Authority and Holtec International. It's the latest sign that the federal government is betting big on nuclear power as tech companies scramble for electricity to fuel their AI ambitions.
The Department of Energy just made its biggest bet yet on nuclear power's comeback, announcing $800 million in grants split evenly between the Tennessee Valley Authority and Holtec International to build small modular reactors across the Southeast and Midwest.
The timing couldn't be more telling. As Microsoft, Google, and Amazon burn through electricity training AI models, the federal government is doubling down on nuclear as the clean baseload power source that can keep data centers humming 24/7. The DOE announcement comes just months after tech giants started inking nuclear deals left and right.
TVA will use its $400 million to build one 300-megawatt reactor using technology from GE Vernova Hitachi at an undisclosed Tennessee location. Meanwhile, Holtec plans to construct two of its own 300-megawatt small modular reactors in Michigan, marking a significant expansion of nuclear capacity in both states.
What makes these reactors different isn't revolutionary technology - they're Generation III+ designs, essentially refined versions of nuclear tech that's been powering cities for decades. The breakthrough is in the packaging. By shrinking traditional reactor designs into "small modular" units, companies like Holtec promise factory-built components that can be mass-produced and assembled on-site like industrial Lego blocks.
"The hope is that costs will come down as parts are mass produced and engineering and construction crews become more familiar with building them," according to TechCrunch's reporting. It's the same playbook that made smartphones cheap - standardize the design, then scale production.
But here's the reality check: despite all the hype and government backing, only two small modular reactors are actually operational worldwide, according to the World Nuclear Association. That puts pressure on TVA and Holtec to prove the concept can work at commercial scale.
