Welcome to GridBrief, your source for in-depth analysis of the critical issues shaping the energy industry. Nuclear power grabs the spotlight this week as innovative startups push boundaries, policymakers refine regulations, and major deals set the stage for a high-energy future. From micro-reactors buried deep underground to contentious licensing battles, the nuclear revival continues to take shape. Meanwhile, federal tax credits promise to supercharge clean energy development, and data centers fuel skyrocketing demand for reliable power.

Deep Fission’s Underground Micro-Reactors

Nuclear startup Deep Fission has announced a groundbreaking partnership with Endeavour, a data center developer, to deploy 2 gigawatts of power using underground micro-reactors. These reactors, designed to be buried a mile deep, aim to reduce the costs and risks associated with aboveground nuclear facilities. The deal represents a bold step toward addressing the massive energy demands of data centers, driven by AI and high-performance computing.

Deep Fission’s design uses pressurized water reactors paired with steam generators, delivering electricity at costs projected to be half that of traditional nuclear. While the startup has yet to secure regulatory approval, its ambitious plans signal growing momentum in the nuclear sector, with data center giants like Google and Amazon backing similar technologies. The first reactor is expected to go online by 2029, marking a potential turning point in decentralized nuclear energy.

GSA’s 10-Year Nuclear Deal

In a landmark move, the U.S. General Services Administration (GSA) inked a 10-year, $1 billion agreement with Constellation Energy to supply nuclear power to federal agencies. The deal highlights nuclear’s resurgence as a cornerstone of the clean energy transition. Constellation plans to reinvest in its existing plants, adding 1,100 megawatts of capacity by 2028, while implementing energy efficiency upgrades across government buildings.

This agreement underscores the shifting narrative around nuclear energy, now seen as an essential tool for grid reliability and decarbonization. With data center power needs skyrocketing and federal climate goals looming, nuclear power’s 24/7 carbon-free electricity offers a compelling solution. The GSA’s move signals broader institutional support for the sector, further cementing nuclear’s role in America’s energy future.

Lawsuit Targets NRC Licensing

The Nuclear Regulatory Commission (NRC) faces a legal challenge from Texas, Utah, and nuclear developer Last Energy over its “overburdensome” microreactor regulations. The lawsuit argues that NRC’s outdated rules hinder innovation and make it nearly impossible to build new reactors in the U.S. Last Energy, which has already secured projects abroad, claims its design poses minimal risk and should be exempt from the NRC’s stringent oversight.

The case highlights growing frustrations with the regulatory bottlenecks that stymie nuclear development. While the NRC is pursuing reforms, including its Part 53 framework for proportional regulation, these efforts remain years away from implementation. As demand for clean, reliable energy surges, the outcome of this lawsuit could shape the future of small modular and microreactors in the U.S.

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Conversation Starters

• A New Electricity Supercycle - The Economist
  The Economist explores the surge in global energy demand, driven by AI, EVs, and renewables. Could we be entering a new era of high-stakes energy transformation?

• Bankruptcy to Opportunity - E&E News
  Nano Nuclear Energy’s acquisition of Ultra Safe Nuclear Corp. underscores the high-risk, high-reward nature of the advanced reactor market. Can Nano deliver on its vision of affordable, deployable microreactors?

• Clean Energy Tax Credits - ESG News
  The Biden administration’s new clean electricity tax credits aim to save U.S. households billions while supercharging zero-emission energy projects. How will these incentives reshape the energy landscape in 2025 and beyond?

Good Bet, Bad Bet

Good Bet: Endeavour Energy LLC (Private)
Deep Fission’s partner in its underground reactor initiative is positioning itself at the forefront of the data center energy revolution. With AI and cloud computing driving unprecedented energy demand, Endeavour’s investment in cutting-edge nuclear technology is a savvy play for long-term power security and sustainability.

Bad Bet: Nuclear Power “Too Cheap to Meter”
In 1945, Manhattan Project physicist Harold Urey predicted that nuclear energy would make electricity “too cheap to meter.” Decades later, the nuclear industry’s cost overruns and regulatory challenges have proven otherwise. While nuclear power offers unique benefits, the promise of limitless, low-cost energy remains an elusive dream.

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