Reviving Zombie Nuclear Reactors: How AI Data Center Demand Sparks a New Energy Revolution

In South Carolina, a state-owned utility is making headlines as it seeks to revive construction on a nuclear power plant that has been dormant for eight years. The project, initially plagued by budget overruns and mismanagement, is now being reconsidered as interest in nuclear energy surges, particularly driven by the rapid expansion of data centers.

Reviving the Virgil C. Summer Nuclear Power Station

Santee Cooper, the utility in charge, is actively seeking partners to finance and complete the construction of two reactors at the Virgil C. Summer Nuclear Power Station. According to a report by the Wall Street Journal, the utility hopes to tap into the growing demand for energy as more companies invest in data centers.

A Troubled Past

The journey of the Virgil C. Summer Nuclear Power Station has been tumultuous. The single reactor facility was initially expanded to include two additional reactors, a project that commenced in 2008. However, the construction was halted in 2017 when an audit revealed that costs had skyrocketed from an estimated $9.8 billion to $25 billion. This mismanagement led to:

• The loss of $2 billion in federal incentives.
• Bankruptcy of Westinghouse, a prominent nuclear power company.
• Securities fraud convictions for two SCANA executives.

Lessons from the Vogtle Electric Generating Plant

The reactors under construction at V.C. Summer are similar to those at the Vogtle Electric Generating Plant in Georgia. After facing years of delays and billions in cost overruns, the Vogtle expansion was finally commissioned in 2023, casting a shadow over the nuclear power sector across the United States.

Future Prospects for Nuclear Power

Despite its troubled history, Santee Cooper remains optimistic about securing partnerships for the project’s completion. The renewed interest in nuclear energy, particularly due to the increasing demand from AI-driven data centers, offers a promising outlook. Recent developments include:

• Microsoft partnering with Constellation Energy to restart a reactor at Three Mile Island.
• Meta seeking developers for 1 to 4 gigawatts of new nuclear capacity.

Santee Cooper is reportedly looking to sell to a consortium that may include a technology firm aiming to secure reliable energy sources.

Navigating Political Challenges

Any potential agreement forged by Santee Cooper will likely navigate complex political waters. A portion of the expansion costs for V.C. Summer was passed onto ratepayers due to a state law permitting utilities to transfer the financial burden of new nuclear projects. Successfully completing the expansion and finding a buyer could alleviate this burden on consumers.

As a state-owned entity, Santee Cooper’s dealings will attract significant political scrutiny, which could influence the project’s future direction.

For further insights into the evolving landscape of nuclear energy, explore our articles on nuclear energy trends and energy consumption by data centers.