KEY POINTS
-
X-Energy recently received environmental approval for a nuclear power development.
-
The data center boom has driven an increase in power demand, leading to large power users looking for innovative solutions.
-
Power Infrastructure construction has expanded significantly in recent years, and will likely need to continue growth to meet demand.
Nuclear startup X-energy cleared a major regulatory hurdle last month when the U.S. Nuclear Regulatory Commission (NRC) completed its environmental assessment for the company’s proposed Texas project. The decision keeps the company on track to develop its first nuclear plant on the Texas Gulf Coast near Corpus Christi.
The project calls for four Xe-100 reactors at Dow’s UCC Seadrift Operations site. Each high-temperature gas-cooled reactor is designed to generate 80MW of electric output, for a combined 320MW across the four-unit plant.
US Nuclear Development Steps Forward
The approval marks another step forward for advanced nuclear development in the U.S., an area that has drawn support from both the Biden and Trump administrations. The ADVANCE Act, signed in 2024, pushed the NRC toward a more efficient licensing framework, while Trump administration executive orders in 2025 called for broader NRC reform and faster review timelines.
X-energy’s project has been moving on an accelerated schedule as a result, with the NRC previously setting an 18-month review timeline for the construction permit application, roughly half the agency’s historic pace.
The milestone also comes amid renewed momentum for the nuclear sector. Canary Media reported that two new commercial nuclear reactors broke ground in April, ending a stretch of more than two years without a new U.S. commercial reactor start.
[Read TerraPower Starts Construction on First U.S. Utility‑Scale Advanced Nuclear Power Plant in Wyoming]
Nuclear Power Revival
That long lull in new U.S. nuclear construction was shaped in part by decades of political resistance and public skepticism following the Three-Mile Island accident. However, sentiment has shifted in recent years as policymakers and large power users have renewed their focus on reliable energy generation.
One high-profile example is the effort by Microsoft and Constellation Energy to restart part of Three Mile Island to help meet data center-related electricity demand.
X-energy also benefits from its ties to Amazon. The tech giant has backed the company financially, taken an equity stake, and said it will support the development of as much as 5 gigawatts of new nuclear capacity through power agreements tied to its data center growth.
Data centers are playing a significant role in nuclear power revival and underscoring the growing power focus. The International Energy Agency reported that electricity demand from data centers rose 17% in 2025, far outpacing the 3% increase in global electricity demand overall.
At the same time, data center development continues to accelerate. In ConstructConnect’s outlook, the Office category—which includes Data Centers—is projected to top $150 billion in 2026, up roughly 65% year over year.
The Power Generation Shift
To help meet the needs of an expanding and energy-intensive wave of data centers, projects such as X-energy’s Xe-100 reactors may become increasingly important. That broader demand is already showing up in construction activity, particularly in power infrastructure.
ConstructConnect forecasts Power Infrastructure starts will reach $48.6 billion in 2026, more than five times the level recorded in 2021.
X-energy’s approval highlights the possibility of a continued shift toward nuclear while underscoring the scale of emerging power demand. Data centers are a central part of that story, as major technology companies including Amazon and Microsoft look for reliable ways to secure electricity for future growth.
If this high-demand environment persists, new generating capacity and alternative solutions such as X-energy’s will likely play a larger role in meeting those needs.
Stay Connected
Stay connected with ConstructConnect News for construction industry news and construction market analysis to stay ahead of what’s building next.
About ConstructConnect
At ConstructConnect, our software solutions provide the information that construction professionals need to start every project on a solid foundation. For more than 100 years, our keen insights and market intelligence have empowered commercial firms, building product manufacturers, trade contractors, and architects to make data-driven decisions, streamline preconstruction workflows, and maximize their productivity. Our newest offerings—including our comprehensive, AI-assisted software—help our clients find, bid on, and win more projects.
ConstructConnect operates as a business unit of Roper Technologies (Nasdaq: ROP), a constituent of the Nasdaq 100, S&P 500, and Fortune 1000.
For more information, visit constructconnect.com
