To address the power shortage, the United States plans to add up to 10 new nuclear reactors, potentially with Japan "footing the bill."

The U.S. government plans to procure and own up to 10 newly constructed large nuclear reactors to address the surge in electricity demand brought about by data centers and artificial intelligence development.

On November 19, according to media reports, Carl Coe, chief of staff at the U.S. Department of Energy, stated at an energy conference in the U.S. that although government intervention in the private market is contrary to convention, the current situation constitutes a "national emergency."

Analysts believe this indicates that the Trump administration is attempting to leverage executive power to accelerate the construction of nuclear energy infrastructure to fill the energy gap.

In terms of funding, the plan may utilize the $550 billion investment previously pledged by Japan. As part of the U.S.-Japan trade agreement framework, Japan has agreed to invest approximately $332 billion in U.S. energy projects, including investments in Westinghouse's new AP1000 reactors and small modular reactors.

However, given Japan's own financial situation, there remains uncertainty about whether this funding will be fully realized or whether the U.S. Treasury will need to fill any gaps.

This news has sparked significant market interest in the nuclear energy sector, which is expected to bring substantial capital inflows into the nuclear power supply chain. From reactor design, heavy manufacturing to uranium enrichment and safety monitoring equipment, several industry leaders in various segments are seen as potential beneficiaries.

Unconventional Intervention in a "National Emergency"

As the demand for electricity from artificial intelligence data centers skyrockets and the potential revival of U.S. manufacturing looms, the U.S. power system faces immense pressure.

Previously, on his first day in office, President Trump declared an energy emergency, unlocking several domestic powers, including fast-track approval processes, grid expansion, and the rescue of coal-fired power plants.

Carl Coe candidly stated at a conference hosted by the Tennessee Advanced Energy Business Council:

The government's role in intervening in the private market is sacred and inviolable—typically, you wouldn't do this. But this is a national emergency.

Currently, the U.S. Department of Energy has not disclosed specific site details, with Coe stating at the conference: "We are deciding where to place them," expressing confidence in the final implementation of the nuclear reactor projects.

In addition to directly purchasing reactors, there have been earlier reports that the U.S. will invest "hundreds of billions of dollars" in loans to the nuclear power industry, including a previously issued $1 billion loan for the restart of the Three Mile Island nuclear power plant.

Potential Beneficiaries in the Supply Chain

With the federal government planning to directly procure, the market speculates that several key players in the nuclear energy sector will benefit.

In terms of reactor design and construction, Westinghouse Electric, which has the large reactor design (AP1000), is jointly owned by Cameco and Brookfield Asset Management. Since this is currently the only large reactor design under discussion, the parties involved have been coordinating with the U.S. government. General Electric-Hitachi, while possessing boiling water reactor technology, has focused more on the development of the small reactor BWRX-300 in recent years.

On the equipment and manufacturing side, BWX Technologies, as the primary nuclear contractor for the U.S. government, may gain a larger role in heavy manufacturing As a leader in radiation safety and monitoring equipment, Mirion Technologies, along with Flowserve as a major supplier of nuclear pumps and valves, is expected to secure a large number of orders. Flowserve noted in its latest financial report that its potential nuclear contract revenue stream could reach up to $10 billion.

In terms of the fuel supply chain, Centrus Energy and Silex Systems are gaining attention for their expansion in the production of low-enriched uranium (LEU) and high-assay low-enriched uranium (HALEU).

Additionally, domestic uranium mining companies in the United States (such as UEC, EU, URG, UUUU) will also benefit from the federal government's efforts to expand domestic uranium mining, which is driven not only by commercial expansion but also by defense needs.

A Revival After a Decade of Silence

Analysts believe that if this plan is implemented, it will break the deadlock in U.S. nuclear power construction that has lasted for more than a decade.

The last large-scale nuclear power plant construction in the U.S. was over a decade ago, and the industry was severely impacted by Southern's Vogtle project, which exceeded its budget by $16 billion and was delayed by seven years, leading many energy companies to believe that expensive large-scale nuclear projects had no future.

However, the AI boom has changed the industry's logic.

Xcel CEO Bob Frenzel suggested earlier this year that large nuclear projects might become popular again.

Under the red alert of power shortages, the U.S. government's direct intervention may be the key impetus needed for the industry to restart