Energy Department Awards $800M for Small Nuclear Reactor Development

Two more nuclear companies have been awarded large grants by the Trump administration.The Tennessee Valley Authority (TVA) and Holtec will each receive $400 million from the Department of Energy to build small modular reactors based on existing nuclear fission technology.

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The TVA will build one 300-megawatt reactor from GE Vernova Hitachi in Tennessee, while Holtec will build two of its 300-megawatt reactors in Michigan.

Tech companies have warmed to nuclear power in recent years as their demand for electricity has grown alongside their AI ambitions.

The reactors to be built are considered Generation III+ designs, which are refinements of existing designs that have been in use for decades. By shrinking them down to “small modular” size, the hope is that costs will come down as parts are mass produced and engineering and construction crews become more familiar with building them.

To date, though, only two small modular reactors are operational, according to the World Nuclear Association.