KEY POINTS
-
The U.S. Department of Energy is investing $800 million in the deployment of small modular reactors (SMRs), selecting TVA and Holtec to lead projects aimed at modernizing nuclear energy infrastructure and meeting rising electricity demands.
-
SMRs offer scalable, flexible solutions to support growing electricity needs driven by AI, data centers, EVs, and industrial electrification.
-
The development highlights a growing sector of infrastructure work that demands expertise in construction and robust supply chain management.
The landscape of American energy infrastructure is shifting, and the federal government is backing that shift with significant capital. The U.S. Department of Energy (DOE) announced in a statement last month the selection of two major project teams to support the early deployment of small modular reactors (SMRs).
With up to $800 million in federal cost-shared funding available, the Tennessee Valley Authority (TVA) and Holtec Government Services were selected to lead the deployment. For the construction industry, the move signals progress toward the next generation of nuclear power facilities, creating potential opportunities to find construction projects and support domestic supply chains.
A Push for Energy Independence
This funding is part of a broader effort to strengthen the nation’s power grid and meet rising electricity demands.
On May 23, 2025, President Trump signed four executive orders to revitalize the U.S. nuclear energy sector. The directives focus on modernizing regulations, streamlining reactor testing, and strengthening the nuclear industrial base to enhance U.S. energy capabilities and maintain global leadership.
The executive orders instructed the DOE to classify AI data centers as critical defense facilities. They directed the Secretary of Energy to use all legal means to approve and deploy advanced reactors to power them.
Robust Global Electrical Demand
The International Energy Agency’s (IEA) World Energy Outlook 2025 highlights a significant transformation in global energy consumption, forecasting robust growth of 40- 50% in electricity demand by 2035.
This substantial increase is not driven by a single factor but by a broad electrification trend across multiple industries. While the rapid expansion of artificial intelligence and the data centers that power it are notable contributors, the report also points to growing electricity needs in advanced manufacturing, the electrification of industrial heating and cooling systems, and the electric transportation sector.
Understanding these diverse drivers is crucial for preparing the necessary infrastructure to support this evolving energy landscape and ensure a reliable power supply for the future.
SMRs represent a flexible solution to this challenge. Unlike traditional massive nuclear plants, these smaller reactors offer scalable deployment. The goal is to deliver new nuclear generation by the early 2030s, supporting everything from the manufacturing boom to the rapid growth of data centers and artificial intelligence.
A conceptual illustration of a small nuclear reactor site at Clinch River in Tennessee. Unlike traditional nuclear plants, these smaller reactors offer scalable deployment. Image: TVA
Selected Projects
The DOE split the funding between two primary initiatives, awarding $400 million to each team. Both projects aim to construct the first Gen III+ small modular reactor plants in the United States.
Tennessee Valley Authority (TVA)
TVA plans to advance the deployment of a GE Vernova Hitachi BWRX-300 reactor. This project is slated for the Clinch River Nuclear site in Tennessee. The project is notable for its extensive collaboration.
TVA is accelerating deployment alongside Indiana Michigan Power and Elementl. Furthermore, the project places a strong emphasis on the domestic supply chain.
TVA has lined up partners, including Scot Forge, North American Forgemasters, BWX Technologies, and Aecon. This collaborative approach points to the complex network of specialized trades and manufacturing required to bring modern nuclear facilities online.
Holtec Government Services
Holtec is taking a different approach in Michigan. They plan to deploy two SMR-300 reactors at the Palisades Nuclear Generating Station site in Covert. Holtec is pursuing a “one-stop shop” model for the deployment.
They intend to fulfill multiple roles, acting as technology vendors, supply chain managers, plant operators, and electricity merchants. Holtec will partner with Hyundai Engineering & Construction for the actual build.
This project is designed to demonstrate viability for future orders, potentially opening the door for similar projects domestically and abroad.
Implications for Construction
For trades, general contractors, and industry stakeholders, the government’s announcement is about more than just energy policy. It highlights a growing sector of infrastructure work that demands construction expertise and robust supply chain management.
The DOE’s investment is specifically designed to “de-risk” these early projects. By addressing key barriers in design, licensing, and site readiness now, the government aims to streamline the path for future projects.
As the nation prepares for its energy needs, the construction industry will play a central role in laying the foundation for this nuclear renaissance.
Stay Connected
Stay connected with ConstructConnect News, your source for construction economy insights, market trends, and project news.
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
