The U.S. Department of Energy is investing $2.7 billion to boost domestic uranium enrichment capabilities, responding to the growing electricity demand from AI data centers. Announced on Monday, this funding will be allocated over a decade, with each of the three selected companies—American Centrifuge Operating, Orano Federal Services, and General Matter, a startup supported by billionaire Peter Thiel—receiving $900 million.
The initiative aims to reduce reliance on foreign uranium, particularly from Russia, which currently controls approximately 44% of global enrichment capacity and provides about 35% of U.S. nuclear fuel imports. The funding is also intended to support the production of high-assay low-enriched uranium (HALEU), essential for future advanced nuclear reactors. Energy Secretary Chris Wright emphasized the administration's commitment to establishing a secure domestic nuclear fuel supply chain.
This funding follows a government bill passed in 2024, which allowed six companies to vie for contracts related to enriched uranium supply. In addition, the U.S. administration has prohibited imports of Russian nuclear fuel, although waivers can be granted until 2028.