Aug 25 (Reuters) - The Utah Office of Energy

Development, TerraPower and land development firm Flagship

Companies signed an agreement on Monday to explore sites for a

nuclear reactor project and an energy storage plant amid soaring

demand for power.

The parties said they expect to make recommendations for a

site by the end of the year.

U.S. nuclear power is experiencing a renaissance after

decades of stagnation, driven by record demand from data centers

used for artificial intelligence technologies and the

electrification of industries such as transportation and

manufacturing.

The agreement also supports Utah Governor Spencer J. Cox's

Operation Gigawatt, a strategic effort to build an energy

ecosystem that serves Utah and the Western U.S., the companies

said in a statement.

President Donald Trump signed executive orders in late May,

directing the U.S. Nuclear Regulatory Commission to cut down on

regulations and fast-track new licenses for reactors and power

plants.

In June, TerraPower had raised $650 million in a funding

round that included founder Bill Gates and the venture capital

arm of chipmaker Nvidia ( NVDA ), and said it expects to get

regulatory approval for its $4 billion nuclear reactor next

year.

The company's $4-billion Natrium nuclear reactor is located

in Wyoming on the site of an old coal plant.

Bellevue, Washington-based TerraPower has been developing an

advanced nuclear reactor that uses liquid sodium as a coolant

instead of water.

The Natrium reactor has the added benefit of using

significantly less water than the current light water reactor

fleet and small modular reactor designs, making it well suited

for water-constrained regions, the company said in statement.