U.S. Energy Department Announces $900 Million for Commercial Deployment of Small Modular Reactors

The U.S. Energy Department on March 24 reissued a $900 million funding opportunity to advance the commercial deployment of domestically manufactured Generation III+ Small Modular Reactors, or SMRs. Accelerating the development and commercialization of the reactors will provide reliable electricity, particularly for energy-intensive sources such as AI data centers. The department’s initiative supports President Trump’s directive to unleash American energy and establish the U.S. as a leading nation for AI technology.

There are two tiers to the funding initiative, with Tier 1 providing $800 to support first mover projects to develop their first plant utilizing a multi-reactor. Tier 2 projects will receive around $100 million to facilitate additional Gen III+ SMR Investments, and address barriers to investments including design and licensing.

The department originally announced the funding availability in October 2024 under the Biden administration. The Consolidated Appropriations Act of 2024 allocated $1.69 billion for nuclear energy research, development, and demonstration activities. The act derives this funding through the 2021 Infrastructure Investment and Jobs Act.

As AI data centers grow, the demand for electricity will increase significantly and could strain the electric grid. Major tech companies are looking to nuclear energy to meet their necessary energy needs. SMRs are ideal for powering data centers because of their compact, modular and versatile configurations.             Applicants who submitted proposals for this solicitation must resubmit their proposals due to the reissuance under the new administration. The new deadline to submit proposals is April 23, 2025.