WASHINGTON (Diya TV) — The U.S. government will invest $2.7 billion to rebuild domestic uranium enrichment, a critical step aimed at reducing reliance on foreign nuclear fuel and meeting rising electricity demand driven by artificial intelligence data centers.
The Department of Energy announced Monday that it will award $900 million each to American Centrifuge Operating, Orano Federal Services, and General Matter, a nuclear fuel startup backed by billionaire investor Peter Thiel. The funding will roll out over the next 10 years through task orders tied to strict performance milestones. Officials say the move will strengthen U.S. energy security, support advanced nuclear reactors, and help stabilize power supplies as electricity use surges across the country.
The funding targets a long-standing weakness in the U.S. nuclear supply chain. Russia controls about 44% of the world’s uranium enrichment capacity and supplies roughly 35% of U.S. nuclear fuel imports, according to the Energy Department.
The United States operates 94 commercial nuclear reactors, most of which depend on enriched uranium from overseas. Lawmakers banned imports of Russian nuclear fuel in 2024, though the Energy Department can issue limited waivers through 2028 to avoid supply disruptions. Energy Secretary Chris Wright said the new awards show the administration’s commitment to restoring a secure domestic fuel supply.
“This effort will power today’s reactors and support the advanced reactors of tomorrow,” Wright said in a statement.
Two of the companies, American Centrifuge Operating and General Matter, will focus on producing high-assay low-enriched uranium, known as HALEU. This specialized fuel will power advanced nuclear reactors now under development, including small modular reactors. These next-generation reactors promise lower costs, smaller footprints, and factory-based construction. Developers say they could play a key role in meeting future power needs.
Orano Federal Services will focus on expanding production of traditional low-enriched uranium used by today’s nuclear plants. Orano plans to develop an enrichment facility in Tennessee as part of the effort. The United States currently has only one major commercial enrichment plant. Urenco operates the facility in New Mexico through a European-owned consortium.
The announcement comes as tech companies race to build massive data centers to support artificial intelligence. Firms such as Microsoft, Google, Meta, and OpenAI continue to expand computing capacity for training and running AI models. These facilities consume vast amounts of electricity and already strain local power grids in several regions. Utilities and regulators now face growing pressure to secure reliable, carbon-free energy sources.
Nuclear power has regained attention as a long-term solution. It provides steady, emissions-free electricity and operates around the clock. Federal officials say expanding domestic nuclear fuel production will help support that growth.
General Matter stands out among the award recipients. The company launched last year and was founded by Scott Nolan, a partner at Founders Fund, the venture capital firm started by Thiel. Founders Fund led a $50 million funding round that placed Thiel on the company’s board.
The Energy Department has already leased about 100 acres of federal land to General Matter at the former Paducah Gaseous Diffusion Plant in Kentucky. The agreement also gives the company access to at least 7,600 cylinders of uranium hexafluoride, a key material for enrichment. General Matter expects to begin construction this year and start operations by the end of the decade.
Shares of Centrus Energy, the parent company of American Centrifuge Operating, rose more than 9% Monday following the announcement. The Energy Department also awarded $28 million to Global Laser Enrichment, a joint venture owned by Silex Systems and Cameco, to advance next-generation enrichment technology.
Congress approved the funding in 2024 as part of a broader plan to revive the U.S. nuclear fuel industry. Officials say the investments will rebuild lost capabilities and reduce long-term risks tied to foreign suppliers. The three companies did not immediately respond to requests for comment. As electricity demand climbs and nuclear power gains momentum, federal leaders see domestic uranium enrichment as a cornerstone of U.S. energy security and future growth.
