In the Race for AI Power: U.S. Energy Shifts and Nuclear Revivals

The U.S. Department of Energy (DOE) has entered into an agreement with General Matter to repurpose the Fuels and Materials Examination Facility (FMEF) located at the Hanford Site. The goal is to transform the 17,650-square-meter site, built in 1984 and unused since 1993, into a center for advanced nuclear fuel cycle technologies. This step is part of a broader federal initiative aimed at ensuring domestic energy supplies for the rapidly growing AI sector, which demands large amounts of reliable 24/7 energy. With electricity consumption in the U.S. expected to reach record levels in 2026, providing clean and secure energy has become a matter of national security in the global AI race.

General Matter’s task is to conduct site characterization and technical assessments to determine the upgrades necessary for Hanford’s reactivation. Authorities claim the project will foster innovation and prosperity for residents in Central Washington, turning a federal burden into a commercial asset.

Parallel to this, General Matter is advancing a project in Paducah, Kentucky, where the company recently secured a $900 million contract to accelerate the production of specialized fuel needed for next-generation reactors. Work has already begun on clearing the site for a new enrichment plant. Scott Nolan, CEO of General Matter, emphasized that restoring the U.S. nuclear industrial base is the only way to reduce dependency on foreign suppliers and lower energy costs.

The U.S. is experiencing an unprecedented wave of reactor restarts and new constructions to meet the energy demands of the digital age. In Michigan, Holtec International has applied to build two SMR-300 reactors at the Palisades Energy Center, with plans to complete construction by the early 2030s. This follows a historic restart of the main 800 MW reactor at the site, expected to reconnect to the grid by the end of February 2026.

Similarly, to power AI infrastructure, Google has partnered with NextEra Energy to restart the Duane Arnold Energy Center in Iowa. Under a 25-year agreement, Google will purchase 600 MW of electricity from this facility, which is planned to be operational by early 2029.

The Hanford Site is a complex in Washington State where plutonium was produced during the Cold War. Cleanup efforts are currently underway to address radioactive waste contamination.