The U.S. government is committing USD$2.7 billion to rebuild domestic uranium enrichment as electricity demand surges from artificial intelligence data centers.
The Department of Energy said on Monday it will award USD$900 million each to American Centrifuge Operating, Orano Federal Services, and General Matter. The funding will be issued through task orders over the next 10 years, using a strict milestone-based structure.
Officials say the plan aims to reduce reliance on foreign nuclear fuel, particularly from Russia.
Russia controls about 44 per cent of global uranium enrichment capacity, according to Energy Department figures. Additionally, Russia supplies roughly 35 per cent of U.S. nuclear fuel imports. Consequently, federal officials see enrichment as a national security vulnerability that requires urgent investment.
American Centrifuge Operating is a subsidiary of Centrus Energy (NYSE American: LEU). Meanwhile, Orano Federal Services is the U.S. arm of French nuclear group Orano.
Scott Nolan of Founders Fund started General Matter last year.
The Energy Department said two recipients will focus on high-assay low-enriched uranium, known as HALEU. HALEU will fuel advanced nuclear reactors now under development across the United States. Additionally, Orano will expand production of conventional low-enriched uranium for existing reactors.
Energy Secretary Chris Wright said the awards advance a secure domestic fuel supply. He explained the funding supports both today’s reactors and next-generation designs.
The announcement arrives as power demand climbs sharply. Major technology companies are racing to build energy-intensive AI data centers nationwide. Those firms include Microsoft Corp (NASDAQ: MSFT), Google (NASDAQ: GOOGL), Meta Platforms (NASDAQ: META), and OpenAI. Consequently, utilities are revisiting nuclear power as a steady, emissions-free electricity source.
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Biden-Harris administration banned Russian nuclear imports
The money traces back to legislation passed in 2024 under the Biden-Harris administration. That bill set aside funds to rebuild enrichment capacity inside the United States. Additionally, six companies were pre-selected that year to compete for future enrichment work.
The administration also banned imports of Russian nuclear fuel. However, the Energy Department retains authority to issue waivers through 2028. Officials say the new contracts reduce the need for those exemptions over time.
General Matter brings a high-profile investor connection. Backers include billionare Peter Thiel through Founders Fund. In addition, the company raised USD$50 million last year in a financing round led by the firm. That deal also placed Thiel on General Matter’s board.
General Matter has already secured federal support beyond funding. In August, the Energy Department leased the company about 100 acres in Kentucky. The site sits at the former Paducah Gaseous Diffusion Plant. Additionally, the lease grants access to at least 7,600 cylinders of uranium hexafluoride.
That material provides an immediate feedstock for reenrichment operations. Consequently, General Matter can accelerate early production timelines. Officials expect construction to begin this year. Meanwhile, they anticipate starting operations before the decade ends.
American Centrifuge Operating and General Matter will focus on building HALEU capacity. Orano’s work will target fuel for the nation’s 94 commercial reactors. Furthermore, the Energy Department said it will review progress at each milestone.
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