Duke Energy has opened talks with major technology companies about the possibility of sharing the financial exposure involved in building new nuclear reactors, company leadership said. The conversations center on whether hyperscalers would take on some of the economic risk associated with constructing reactors that could supply growing volumes of power to meet rising demand.
The utility, based in North Carolina and covering a broad portion of the southeastern United States, has experienced heightened electricity demand as firms build energy-intensive data centers. That increased consumption has contributed to record highs in electricity usage in parts of the country.
Duke already operates more nuclear power plants than any other regulated utility in the United States. Company management has discussed adding further nuclear generation to its portfolio as a way to serve the rising loads coming from data center buildouts.
The prospect of new nuclear construction comes with well-known challenges. Building nuclear plants historically has involved higher-than-anticipated costs and schedules that extend beyond initial plans. Those factors have made many U.S. electric utilities reluctant to proceed with new reactors without sharing or offsetting construction risk.
Duke Energy's chief executive, Harry Sideris, addressed the subject during a NEXT Newsmaker interview, noting the company has engaged hyperscalers about assuming part of the financial burden of new builds. The discussions aim to explore contractual or investment structures that could reduce Duke's standalone exposure to cost overruns and timeline delays if the utility moves forward with nuclear additions.
The talks reflect the intersection of two market forces that the company is navigating: a surge in demand from technology customers constructing high-capacity data centers, and the persistent complexity and expense of nuclear plant construction. Duke has presented nuclear expansion as one possible response to sustained demand growth while seeking ways to mitigate the financial risks that typically accompany such projects.
Context note: The information above is drawn from statements by Duke Energy and its chief executive reported in a recent interview; it reflects the company's discussions and strategic considerations at the time of those remarks.