A previously abandoned nuclear power project in South Carolina may get a second chance at life, driven by surging electricity demands from artificial intelligence data centers.
State-owned utility Santee Cooper is seeking partners to revive and complete two unfinished reactors at the Virgil C. Summer Nuclear Power Station. The original construction was halted in 2017 after costs exploded from $9.8 billion to an estimated $25 billion.
The project's troubled history included the bankruptcy of nuclear power company Westinghouse and securities fraud convictions for executives at SCANA, Santee Cooper's former partner. The failed expansion left South Carolina ratepayers bearing significant costs due to state laws allowing utilities to charge customers for new nuclear projects.
However, the landscape has shifted dramatically with tech giants' growing appetite for clean power to run AI operations. Microsoft recently partnered with Constellation Energy to restart a reactor at Three Mile Island, while Meta is actively seeking proposals for up to 4 gigawatts of new nuclear capacity.
Santee Cooper hopes to capitalize on this trend by selling power to a consortium that would include technology companies. The utility believes the project's completion could help offset the financial burden placed on ratepayers.
The revival attempt comes as the U.S. nuclear power industry shows signs of renewal, despite setbacks like the delayed and over-budget expansion of Georgia's Vogtle plant completed in 2023.
Any new deal will face careful scrutiny from state politicians, given Santee Cooper's status as a public utility and the project's controversial history. The outcome could shape the future relationship between nuclear power and the tech industry's growing energy needs.