The Department of Energy is putting $17.5 billion in low-interest loans behind a push to build new large-scale nuclear reactors across the United States. The money is earmarked for utilities ordering long-lead equipment needed to construct Westinghouse AP1000 reactors, the same design that nearly bankrupted its maker less than a decade ago.

Seven utilities have already submitted letters of intent for the financing. The target: ten new reactors spread across five paired projects, which would represent the most ambitious expansion of American nuclear capacity in a generation.

The deal structure and what Washington gets in return

In exchange for the loans and an enhanced permitting process, the US government will secure 20% of Westinghouse’s cash distributions above the $17.5 billion threshold. Washington also stands to receive equity warrants tied to a potential Westinghouse IPO.

The loan package is part of a broader partnership announced for October 2025 that commits to $80 billion in new nuclear construction contracts involving Westinghouse, Brookfield Asset Management, and Cameco. The loans themselves are expected to be formalized around June 23-24, 2026.

Energy Secretary Chris Wright framed the initiative as the beginning of what could be the “next American nuclear renaissance.”

The ghost of Vogtle and Westinghouse’s bankruptcy

Westinghouse’s previous AP1000 projects, most notably the Vogtle Units 3 and 4 in Georgia, became synonymous with cost overruns and construction delays. Those problems were severe enough to push Westinghouse into bankruptcy in 2017 while it was still under Toshiba’s ownership. The Vogtle expansion, originally budgeted at roughly $14 billion, ended up costing more than double that figure and arriving years behind schedule.

Westinghouse eventually emerged from bankruptcy under new ownership. Brookfield Asset Management and Cameco now control the company. The AP1000 did eventually get built at Vogtle, making those the first new US nuclear units to come online in decades.

Why nuclear, why now

The US is facing a power demand crunch driven largely by artificial intelligence infrastructure and data center expansion. Tech giants have been scrambling to secure reliable, round-the-clock electricity for their growing computing needs.

What this means for investors

The $17.5 billion loan package adds a concrete, near-term catalyst to what had been a largely narrative-driven trade. Government-backed financing de-risks the construction phase. Utilities get access to cheap capital. Westinghouse gets a guaranteed order pipeline. And taxpayers, at least in theory, get a share of the profits through the 20% cash distribution stake and IPO warrants if everything works out.

Cameco, which both mines uranium and co-owns Westinghouse, sits at the intersection of multiple tailwinds from this announcement.