Nuclear startups have raised more than $1bn in recent months, driven by rising electricity demand from data centres and aided by changes to federal oversight that reduce safety and security requirements for reactors built on government property.
Funding Surge And Demand From Data Centres
Investment into nuclear startups has accelerated over the past several months, with total fundraising exceeding $1bn. One of the main drivers has been growing demand for reliable electricity from data centres, which require large and consistent power supplies.
Alongside that demand, changes to federal nuclear safety policies are emerging as another factor that could speed up reactor development.
Changes To Federal Safety Oversight
According to a report by NPR, the Department of Energy has revised how it oversees the safety and security of nuclear power plants built on its own land. About one third of the department’s internal safety rules have been removed, with several other sections substantially rewritten.
Requirements that previously aimed to limit groundwater contamination and broader environmental impact have been downgraded to non binding guidance. The updated framework also allows workers to be exposed to higher levels of radiation. Under the revised rules, companies are given greater control over plant security protocols.
Process And Scope Of The Rule Changes
NPR reported that the changes were introduced without public notice or a public comment period. The revised standards apply only to reactors built on DOE property.
Nuclear projects constructed outside DOE land remain subject to oversight by the Nuclear Regulatory Commission, which maintains separate safety and licensing requirements.
Startups And Demonstration Reactors
Several nuclear startups are developing demonstration reactors on DOE sites. These projects are being designed to meet a deadline set by the Trump administration, which has targeted 4 July 2026 for progress on next generation nuclear development.
The changes to DOE oversight could reduce regulatory hurdles for these demonstration projects, potentially shortening development timelines while raising concerns about worker safety, environmental protection, and site security.
Featured image credits: rawpixel.com / Carol M Highsmith
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