Washington Signs Up for $80 Billion of Westinghouse Reactors, With AI as the Customer

The federal government has agreed to become a partner in the largest U.S. nuclear construction program in decades. On October 28 Brookfield Asset Management and Cameco, which jointly own Westinghouse Electric, said they had signed a binding term sheet with the Department of Commerce. The government will arrange financing and facilitate permitting and approvals for new Westinghouse reactors in the United States with an aggregate investment value of at least $80 billion, including near-term financing for long-lead equipment.

Cameco's release says the reactors are expected to supply the grid, including significant data center and computing capacity for artificial intelligence. The deal turns the administration's nuclear executive orders into a commercial structure, and it ties the government's return to Westinghouse's future profits. Once vested, it entitles the government to 20% of any cash distributions Westinghouse makes above $17.5 billion after the interest is granted. If the participation interest has vested by January 2029 and a Westinghouse IPO is expected to value the company at $30 billion or more, the government can require an IPO.

Cameco says the parties expect to negotiate definitive agreements to replace the term sheet, but if they do not, the term sheet remains effective. The announcement centers on Westinghouse's AP1000, the design used at Vogtle Units 3 and 4 in Georgia. Brookfield's release says six AP1000 reactors are operating worldwide, 14 more are under construction and five are under contract, and the technology has been selected for programs in Poland, Ukraine and Bulgaria. Cameco says that once the deal closes and financing is in place, Westinghouse plans to start project execution and order critical long-lead equipment, using the supply chains built for Vogtle 3 and 4.

Cameco chief executive Tim Gitzel tied the deal directly to the executive orders signed on May 23. The orders set a goal of expanding U.S. nuclear capacity from about 100 GW to 400 GW by 2050, directed the NRC to adopt fixed licensing deadlines, and prioritized federal loans and loan guarantees for nuclear projects.