In late May, President Donald Trump issued four executive orders aimed at expanding the nuclear energy sector in the United States. As these orders begin to take effect, several Washington-based political publications have highlighted their potential implications most notably, the possibility of ending the Nuclear Regulatory Commissions (NRC) role in approving new reactor designs, shifting that responsibility to the Pentagon and the Department of Energy.

One official within the administration described the NRCs upcoming role as merely a rubber stamp, implying that the commission had been too slow in approving new reactor designs a perceived obstacle to the presidents goal of dramatically expanding nuclear power in the country. In other words, the NRC is being sidelined, much like FEMA was in earlier contexts.

This shift raises the question: does this change represent a genuine deregulation of commercial nuclear technologies, especially if upcoming reviews overseen by the Department of Defense and the Department of Energy turn out to be less stringent than those traditionally conducted by the NRC?

Why Is This Administrative Shift Seen as a Prelude to a Nuclear Renaissance?

Several reasons support this view. First, setting aside nuclear power itself, US electricity demand forecasts are more optimistic than they've been in decades. And its not just about data centers, which may prove to be a passing trend. A new high-efficiency chip could soon be developed that consumes only a fraction of current electricity, instantly reducing that demand.

Weve repeatedly seen boom-and-bust cycles tied to rare technologies like lithium or cobalt. Yet, the growing and steady demand for electricity isnt solely driven by modern tech it comes from broader electrification trends: heat pumps (used for heating and cooling), electric cars and trucks, and replacing fossil fuels with electricity in industrial applications. In our view, the AI boom is just icing on the cake, amplifying a demand cycle that was already underway.

In short, US electricity demand is growing significantly, with or without AI, which is a positive trend for all energy sources including nuclear.

Will Reactor Licensing Be Accelerated?

Its difficult to gauge how much faster the reactor approval process will be without NRC oversight. So far, the NRC has approved only one design a 50-megawatt small modular reactor (SMR) by NuScale. However, NuScale soon requested a design modification to increase capacity to 77 megawatts, resulting in additional delays, making it a poor benchmark.

Still, there are many SMR designs in the pipeline, and any regulatory acceleration would benefit them all. Reducing or eliminating the NRCs role removes a major obstacle to the commercial viability of these new reactor designs.

Adoption by the Military and Industrial Sector

A critical step toward commercial adoption is acceptance by utilities, government, and industry. Now, thanks to the presidents orders, the US military may become a major customer for two types of small reactors: ultra-small 510 MW reactors to power remote locations (like Westinghouses eVinci), and larger models like those being developed by NuScale and Holtec.

In some ways, this return to military use is a back to roots moment for nuclear energy. But industry is also getting involved. Dow Chemical, for example, has ordered four 80-megawatt reactors from X-Energy to provide power and steam to its plant in Seadrift, Texas.

Despite these promising developments, however, the volume of new demand remains modest.

A Massive Project on the Horizon: Fermi America

Former US Energy Secretary Rick Perry wants to build four Westinghouse AP1000 reactors as part of a massive energy project in Texas. His company, Fermi America, is proposing a hypergrid of 6,000 megawatts combining nuclear, gas, and renewables to power a giant data center complex in Amarillo, Texas.

Interestingly, Amarillo is not part of ERCOT, the grid that covers most of Texas. That means the generated power would be off-grid and non-exportable.

The project was met with some ridicule when a press release claimed the first reactor would be operational by 2032. Still, it remains one of the most important projects to watch. If Fermi America can secure the permits and funding to build over 4,000 megawatts of nuclear power at once, it could be a game-changer.

Its worth noting that multiple-reactor construction was once common among major entities like the Tennessee Valley Authority (TVA) or the Washington Public Power Supply System, which famously ended in financial disaster.

Funding Is the Biggest Hurdle Always

It may be time to consider a new wave of multi-reactor nuclear builds. Given Americas electricity consumption, four new reactors would account for less than 5% of Californias grid capacity, for example.

The bigger question: can these projects be financed? Funding has always been nuclear energys Achilles heel. But the good news is that electricity prices are generally rising a trend that favors high-cost producers like nuclear.

Conclusion: A New Nuclear Era?

Lets consider new nuclear builds through the lens of the energy triangle, which says power must be affordable, sustainable, and safe. But you cant optimize all three at once.

In this context, nuclear has never been cheaper than alternatives. But it is considered sustainable (low carbon emissions) and has reliable domestic fuel supplies.

This time, though, may be different. We believe the nuclear renaissance wont be driven by price-sensitive utilities but by price-insensitive players like industrial firms, tech companies, chipmakers, district heating systems, or major universities.

Even high-cost energy markets like Hawaii or Puerto Rico could become promising nuclear customers.

The potential market for high-priced electricity outside traditional distribution utilities is substantial. And the current US administration has sent a clear message to the nuclear industry: Find buyers for your products, and well approve the contracts. Its hard to imagine a more supportive environment than that.