Reissues funding for small reactor deployment to meet rising AI-era energy needs.

Amid growing urgency to strengthen domestic energy infrastructure and secure long-term energy independence, the U.S. Department of Energy has reissued a $900 million funding opportunity to accelerate the deployment of small modular nuclear reactors, a move aimed at expanding America's clean energy capacity and meeting surging power demand driven by AI, data centers, and industrial growth.

"America's nuclear energy renaissance starts now," said U.S. Secretary of Energy Chris Wright. "Abundant and affordable energy is key to our nation's economic prosperity and security. This solicitation is a call to action for early movers seeking to put more energy on the grid through the deployment of advanced light-water small modular reactors."

While forecasts show electricity demand in the U.S. will likely rise dramatically in the coming years, nuclear energy has long been a quiet provider of nearly 20% of the nation's electricity, operating reliably behind the scenes for decades.

However, the high capital costs, long timelines, and regulatory hurdles associated with building large-scale nuclear plants have limited new development. In contrast, small modular reactors offer a more practical path forward – with compact, factory-built designs that reduce upfront costs, accelerate deployment, and better match the distributed, high-density energy demands of modern industry.

To jump-start this next phase of nuclear deployment, the Department of Energy is offering $900 million in funding to de-risk and accelerate the commercialization of advanced light-water small modular reactors.

Structured across two tiers, the solicitation aims to both support the first wave of reactor deployments and build a broader ecosystem capable of sustaining long-term growth.

Under Tier 1: First Mover Team Support, DOE will allocate up to $800 million to back as many as two full-scale deployment teams.

These teams – comprising utilities, reactor vendors, constructors, and committed end users – must demonstrate near-term readiness to deploy a first plant while laying the groundwork for a multi-reactor orderbook.

Projects selected under Tier 1 may also collaborate with the National Nuclear Security Administration to incorporate safeguards and security into their designs.

Tier 2: Fast Follower Deployment Support will provide approximately $100 million to help additional projects overcome persistent barriers to deployment, including design finalization, site preparation, licensing, and supply chain coordination.

This tier is designed to ensure that promising reactor developers who are not yet first movers can still accelerate toward deployment readiness.

The reissued solicitation builds on a series of aggressive steps taken by the federal government to revive and modernize the U.S. nuclear sector.

In recent years, DOE has backed the restart of shuttered plants like Palisades in Michigan, finalized $3.4 billion in contracts to boost domestic uranium enrichment, and accelerated demonstration efforts for advanced reactors through its Advanced Reactor Demonstration Program.

Together, these efforts reflect a coordinated push to reestablish nuclear as a cornerstone of America's clean energy strategy – capable of delivering reliable baseload power while supporting next-generation technologies like clean hydrogen production and microreactors for remote or industrial applications.

As the only zero-carbon energy source capable of delivering continuous, high-density power at scale, nuclear remains uniquely positioned to anchor the U.S. transition to a low-emissions future.

With their flexibility, smaller footprints, and potential for rapid deployment, small modular reactors are poised to become the workhorses of that future – supporting industrial expansion, grid resilience, and deep decarbonization in the decades to come.