President Trump Orders Expansion of Nuclear Power with New SMR Initiative

On July 31, 2025, President Donald J. Trump signed a series of executive orders aimed at significantly expanding the United States' nuclear energy capacity. These directives mandate the rapid development and deployment of small modular reactors (SMRs) to meet the escalating power demands from the artificial intelligence (AI) sector and data centers.

The executive orders instruct the Department of Energy (DOE) and the Department of Defense (DOD) to expedite the construction of three civilian pilot SMRs, targeting operational status by July 4, 2026, and a military reactor within three years. The initiative also streamlines regulatory processes, emphasizes deployment on federal lands, and sets an ambitious goal to quadruple U.S. nuclear capacity to 400 gigawatts by 2050.

Accelerated SMR Deployment

The DOE and DOD are directed to construct three civilian pilot SMRs, achieving operational status by July 4, 2026, and a military reactor within three years. This initiative aims to meet the increasing power demands from the AI sector and data centers.

Streamlined Regulatory Processes

The Nuclear Regulatory Commission (NRC) is instructed to revise its regulations to expedite the review and approval of reactor projects. This includes establishing fixed deadlines for license evaluations—18 months for new reactors and 12 months for existing ones.

Site Selection and Environmental Reviews

The initiative emphasizes deploying reactors on DOE and DOD lands to avoid permitting delays and expedite environmental reviews. By utilizing federal lands, the program aims to streamline the deployment process and reduce bureaucratic obstacles.

Financial Framework

While projects won't receive direct federal funding, applicants are responsible for all construction, operation, and decommissioning costs. The DOE will provide federal resources during the application process to support applicants in meeting the ambitious deadlines.

Long-Term Capacity Goals

The program targets increasing U.S. nuclear capacity from approximately 100 gigawatts (GW) to 400 GW by 2050. This substantial expansion is intended to bolster the nation's energy infrastructure and support emerging technologies.

Background on Small Modular Reactors (SMRs)

SMRs are advanced nuclear reactors with a power capacity of up to 300 megawatts per unit, approximately one-third the capacity of traditional nuclear power reactors. Their modular design allows for factory fabrication and subsequent assembly on-site, potentially reducing construction times and costs. SMRs are considered a promising solution to meet increasing energy demands, particularly for AI data centers and military installations requiring reliable, carbon-free power.

Industry Implications

Companies with advanced SMR technologies, such as BWX Technologies, Holtec International, Westinghouse Electric Company, and NuScale Power, are well-positioned to benefit from this initiative. These firms have been developing SMR designs with high technological readiness levels and are likely to play significant roles in achieving the administration's ambitious deployment timelines.

Challenges and Expert Opinions

Experts have raised concerns about the feasibility of the tight timelines set forth in the executive orders. Achieving "criticality"—the point at which a nuclear reactor sustains a self-sustaining chain reaction—by July 4, 2026, for civilian SMRs is considered ambitious. Some suggest that a more flexible interpretation of "criticality" may be necessary to meet these deadlines.

Recent Developments in U.S. Nuclear Energy Policy

• Holtec International's Palisades Plant: The NRC approved Holtec's request to restart the Palisades nuclear power plant in Michigan, which was previously shut down in May 2022. Holtec plans to relaunch it as the first U.S. commercial reactor to restart after shutdown, citing increased energy demand from AI and data centers.

• Tennessee Valley Authority's SMR Initiative: The Tennessee Valley Authority (TVA) submitted a permit application to build a small modular nuclear reactor at its Clinch River site in Oak Ridge, Tennessee. If approved, the reactor could be operational by 2032, supplying 300 megawatts of carbon-free electricity.

International Collaboration

UK Prime Minister Keir Starmer emphasized the importance of the United Kingdom and the United States collaborating more closely on SMRs. This statement follows the UK's recent decision to back Rolls-Royce with a £2.5 billion investment to develop the country's first SMRs.

In conclusion, President Trump's executive orders mark a significant shift in U.S. energy policy, aiming to rapidly expand nuclear capacity through the deployment of SMRs. While the initiative presents substantial opportunities for the nuclear industry and aims to meet the growing energy demands of AI and data centers, it also poses considerable challenges in terms of regulatory reform, industry readiness, and adherence to ambitious timelines.