AI Demand Sparks Revival of Mothballed Nuclear Reactors in South Carolina

In South Carolina, state-owned utility Santee Cooper is seeking to restart construction on the Virgil C. Summer Nuclear Power Station, which has remained unfinished since 2017. The project was halted after costs soared from an estimated $9.8 billion to $25 billion, leading to significant financial consequences, including the bankruptcy of Westinghouse, the primary contractor.

The renewed interest in completing the two reactors is driven by an increasing demand for power from AI data centers. As Santee Cooper looks for partners to finance the endeavor, they are optimistic that the resurgence of nuclear energy could align with the needs of tech companies requiring substantial energy resources.

The economic landscape has shifted since the project's initial suspension, with significant moves from major tech companies. Recently, Microsoft partnered with Constellation Energy to restart a reactor at Three Mile Island, while Meta is investigating the potential for new nuclear capacity. Santee Cooper anticipates that attracting a consortium that includes a tech company could facilitate the completion of the project.

Despite the promising outlook, any new partnerships will likely face political scrutiny, especially considering the previous financial burdens placed on ratepayers due to state legislation that allowed utilities to shift costs. Successfully finalizing the project could alleviate some of these financial pressures while contributing to the renewal of nuclear energy in the United States.