News & Insights

The U.S. must streamline nuclear power licensing if it’s going to meet surging power demand, the American data center sector told the Nuclear Regulatory Commission recently (POLITICO Pro’s ENERGYWIRE, subscription).

What’s going on: “In a letter sent Aug. 28 to NRC Chair David Wright and shared exclusively with POLITICO, the Data Center Coalition (DCC)—which represents major data infrastructure operators—urged the agency to update its regulations to ensure quicker deployment of advanced nuclear reactors, including small modular reactors and microreactors.”

• The NRC should collaborate with the Energy Department and other federal agencies to amend regulatory requirements that will speed up reactor deployment, the DCC added, while recommending that the administration adopt simpler environmental assessments, leverage artificial intelligence in site evaluations and speed up licensing for standardized reactors.

The backdrop: In May, President Trump signed four nuclear energy-related executive orders.

• These gave the NRC deadlines for approving reactors, called for the NRC’s reorganization and gave the Energy and Defense departments greater say in commercial reactor licensing.
• The DCC’s letter arrives as the NRC implements provisions of the NAM-supported, bipartisan ADVANCE Act, which required streamlined nuclear licensing.

Why it’s important: There’s a pressing need for “diversified power sources” given the increasing global appetite for artificial intelligence and the accompanying fast growth of data centers.

• U.S. power demand is expected to rise 8% by 2029 following “years of stagnant growth.”
• Politically, there’s a push toward carbon-free baseload power, which makes nuclear an attractive option.

Yes, but … For the nuclear industry to take advantage of this opportunity, “the NRC must shift gears,” according to the DCC.

• This should include amending the NRC’s Part 53 draft rule—which “would create a new category of licensing for the kind of smaller reactors the power industry has been trying to get off the ground for decades”—to instead extend “risk-informed flexibility” into current licensing paths.

NAM in action: The NAM has been one of the foremost advocates of expanding the U.S. nuclear industry, advising policymakers that it should become a central source of energy in the AI age.

• “Nuclear energy is a safe, emissions-free component of America’s energy dominance strategy. It’s also essential for meeting additional energy needs that have arisen with the growth in data centers and the use of AI,” NAM Vice President of Domestic Policy Chris Phalen said recently.