A defunct nuclear power plant will be revived to power Donald Trump’s new half-trillion-dollar project to make America the world’s artificial intelligence powerhouse.
The state-owned utility Santee Cooper — the largest power provider in South Carolina — said Wednesday that it is seeking buyers to complete construction on a partially-built project that was abandoned in 2017.
The VC Summer Nuclear Power Station, which houses two unfinished nuclear reactors, was scrapped following years of lengthy, costly delays and bankruptcy by its contractor, according to a company statement.
But now, the utility is hoping tech giants such as Amazon and Microsoft will be willing to finish the project, as they are seeking clean energy sources to fuel data centers for AI.
‘We are seeing renewed interest in nuclear energy, fueled by advanced manufacturing investments, AI-driven data center demand, and the tech industry’s zero-carbon targets,’ said Santee Cooper President and CEO Jimmy Staton.
This announcement came as President Donald Trump unveiled a $500bn AI project which he says will jumpstart America’s ‘golden age.’
The project, dubbed the ‘Stargate Initiative,’ is a massive private sector deal to expand the nation’s AI infrastructure, led by Big Tech companies such as OpenAI, SoftBank and Oracle. It is the largest AI infrastructure project in history.
Trump stated that Stargate will create over 100,000 new jobs ‘almost immediately.’
As the rise of AI heightens the need for clean energy to fuel data centers, South Carolina aims to restart construction on a partially-built, defunct nuclear power plant (STOCK)
‘This monumental undertaking is a resounding declaration of confidence in America’s potential under a new president,’ he said during a Tuesday briefing.
Trump emphasized that the project aims to sharpen the country’s technological edge against competitors, notably China.
He held the briefing in the White House’s Roosevelt Room alongside SoftBank CEO Masayoshi Son, Oracle’s Larry Ellison and OpenAI’s Sam Altman.
The US AI industry has already grown rapidly in recent years, but one of the biggest hurdles to expansion is the energy cost of running data centers.
A recent Department of Energy (DOE) report found that total data center electricity usage more than tripled from from 2014 to 2023, rising from 58 TWh to 176 TWh.
The DOE estimates that by 2028, data center energy demand will increase between 325 to 580, consuming up to 12 percent of US electricity.
Trump’s announcement underscores this trajectory, and the need for more sources of clean energy to support the AI boom.
The tech industry is showing new interest in nuclear power plants for their ability to produce high amounts of electricity around the clock without releasing emissions that drive climate change.
OpenAI CEO Sam Altman spoke in the Roosevelt Room of the White House following President Trump’s announcement of a $500m AI project dubbed the ‘Stargate Initiative’
The US AI industry has already grown rapidly in recent years, but one of the biggest hurdles to expansion is the energy cost of running data centers, like this Amazon data center in Virginia
Santee Cooper hopes Big Tech companies will jump at the opportunity to purchase and complete construction on two new nuclear reactors, which they could then use to fuel their AI endeavors.
The utility stated that it has ‘no plans to own or operate these units,’ once construction is finished, and that selling ‘would produce benefits for our customers, support economic development and provide value to the state of South Carolina.’
This deal would also help Santee Cooper recoup some of the funds they sunk into the unfinished project, anonymous sources familiar with the matter told the Wall Street Journal.
The company and the plant’s then co-owner South Carolina Electric & Gas, spent about $9 billion on the incomplete reactors.
Santee Cooper said it was working with the investment firm Centerview Partners LLC to vet buyer proposals, which they will accept until May 5.
The exact asking price has not been publicly named, but the Wall Street Journal reported that completion of the reactors would cost the buyer billions of dollars over several years.
This would not be the first time that Big Tech bankrolled a nuclear energy project. Last September, Microsoft struck a deal with the New York utility Constellation Energy to restart the Three Mile Island nuclear plant in Pennsylvania.
This plant was the site of the worst nuclear power accident in US history, when its Unit 2 reactor partially melted down in 1979 and released radioactive gases and iodine into the environment.
Last September, Microsoft struck a deal with the New York utility Constellation Energy to restart the Three Mile Island nuclear plant in Pennsylvania
Google, Amazon and Meta also sought or signed deals to back nuclear energy projects in 2024, similarly motivated by their AI endeavors
Three Mile Island’s undamaged reactor was ultimately deemed too costly to run and shut down in 2019. But Constellation now plans to revive this reactor by 2028 and sell the power to Microsoft, which will use the energy to fuel its growing AI ambitions.
Constellation estimates that restarting the reactor will cost roughly $1.6 billion, and Microsoft has signed a 20-year power purchase agreement with the utility.
Amazon, Meta and Google also sought or signed deals to back nuclear energy projects in 2024, similarly motivated by their AI endeavors.
The federal government has also shown support for the resurgence of nuclear power.
In September, the DOE finalized a $1.52 billion loan guarantee to help Holtec International, a New Jersey manufacturing company, recommission the Palisades nuclear plant in Michigan, marking the first-ever revival of a nuclear power plant in the US.
The Biden administration and Congress also offered billions of dollars in subsidies to maintain older nuclear plants and fund the construction of new reactors.
President Trump has largely opposed and sought to repeal the former president’s energy and climate policies, but has said he supports nuclear energy.
In its first actions this week, the new administration signed an executive order directing the heads of ‘all agencies’ to identify regulations that ‘impose an undue burden’ on domestic energy resources, including nuclear power.
It also instructs the US Geological Survey ‘to consider updating the Survey’s list of critical minerals, including for the potential of including uranium,’ which can be refined into nuclear fuel.
