U.S. President Donald Trump and Japanese Prime Minister Takaichi Sanae are set to announce a nuclear power project in the southern United States, marking the latest initiative under an investment fund established through a trade agreement between the two nations.
A White House official, speaking anonymously ahead of the formal announcement, revealed that the two leaders are expected to announce on Thursday that GE Vernova Inc. and Hitachi will construct BWRX-300 small modular nuclear reactors in Tennessee and Alabama, with costs reaching up to $40 billion.
The official stated that these projects aim to stabilize electricity prices and strengthen U.S. leadership in global technological competition, referring to the race among global tech giants to build energy-intensive data centers to support artificial intelligence development.
The official added that small modular reactors (SMRs), which can generate power on demand, will help drive U.S. industrial growth. Specific details, including when the reactors will become operational, remain unclear.
Although the Trump administration and the nuclear industry are taking steps to accelerate the development of these reactors, most such designs still require regulatory approval. Currently, no SMRs are connected to the U.S. power grid.
SMRs will have lower capacity than traditional nuclear reactors, which typically reach up to 1 gigawatt. However, the technology is designed to shorten development timelines, as traditional reactors often take a decade from site selection and construction to financing.
This reactor project is the latest to be supported by a $550 billion investment fund previously agreed upon by the U.S. and Japan. Last month, the two countries also announced the first three projects under the fund, totaling $36 billion, including a U.S. oil export terminal, a gas-fired power plant, and a synthetic diamond manufacturing facility.
It remains unclear what other investment projects will be announced during Takaichi's visit, though Japanese media reported that a range of proposals—including other energy, critical minerals, and defense-related deals—are under discussion.