Utilities seek hyperscaler deals to de-risk nuclear builds

Duke Energy and other regulated utilities are negotiating partnerships with large cloud hyperscalers to share capital costs for potential new nuclear reactors. Duke filed an early site permit application in North Carolina and included grid upgrades in its 2025 Carolinas Resource Plan.

Duke Chief Executive Harry Sideris confirmed in a recent interview that the company has explored adding more nuclear capacity to respond to higher demand from technology customers.

Duke’s 11 Carolina nuclear units posted a near-record 97% systemwide capacity factor in 2025, delivering carbon-free power to more than eight million homes. The company reported roughly $600 million in customer value tied to federal tax credits in 2025.

Data-center construction and electrification have increased U.S. electricity consumption, prompting utilities to add capacity quickly. Nuclear reactors provide steady, continuous power that can support large, uninterrupted loads such as data centers.

Regulated utilities face pressure to expand capacity while limiting financial risk to shareholders and ratepayers. By negotiating cost-sharing contracts with hyperscalers, utilities would shift some upfront construction risk to large customers that will use the power.

State regulators and utilities are reviewing how such commercial agreements would fit existing rate structures and regulatory rules. Federal incentives for nuclear production and construction influence project economics.

Investors are tracking the sector through indexes and funds that follow nuclear-related companies and services. Ongoing negotiations among utilities, technology companies and regulators will affect the size, financing and timing of potential nuclear projects.