New York plans new nuclear plant as energy demand surges

New York plans to build a nuclear power plant to meet growing clean energy demand. Photo / 123rf

New York State is pushing to build a nuclear power plant to meet growing demand for clean energy, the first major US reactor project in more than a decade.

Governor Kathy Hochul is directing the New York Power Authority to develop and build at least 1 gigawatt of nuclear capacity, enough to power a million homes. Multiple communities upstate are already lining up to host the project, she said during a speech at the Niagara Falls hydroelectric plant.

US interest in nuclear energy is surging, driven by the growing need for electricity to power data centres, factories and increasingly electrified homes. But the industry’s recent history is marked by cost overruns and delays, and few companies are willing to take on a major project without government support.

“We must radically increase supply, starting now,” Hochul said. “If we don’t increase our capacity over the next decade, we will see rolling blackouts and other disruptions.”

The effort builds on the state’s support for Constellation Energy Corp, the biggest US reactor operator, which is seeking a federal permit for a new project at one of its three existing nuclear plants in New York.

Constellation is working to restart the shuttered Three Mile Island nuclear plant in Pennsylvania and has a deal to deliver the power to Microsoft Corp. Hochul cited that agreement as a sign of growing demand for nuclear power in the US.

“This announcement from Governor Hochul highlights the essential role of nuclear power,” said David Dardis, Constellation’s chief legal and policy officer. The company has renamed the Pennsylvania facility the Crane plant, honouring a former chief executive officer of Constellation’s former parent company who died in 2024.

The decision marks a reversal for nuclear power in New York. Constellation rival Entergy Corp closed the Indian Pt nuclear plant north of New York City in 2021, a move heralded by environmental groups that had expressed concerns about the site’s proximity to the biggest US city. However, the shutdown was quickly followed by new complaints from climate activists noting that the facility’s power would largely be replaced by natural gas.

The last major US nuclear project was completed last year in Georgia. Southern Co completed two reactors at its Vogtle power plant, but the effort was seven years behind schedule and at more than US$35 billion ($58.5b) was more than double its original budget. Hochul didn’t provide details on the New York project’s schedule or budget.

That’s made companies wary about pursuing additional nuclear plants. Local lawmakers are also raising questions about whether a New York project could be completed on time and cost-effectively.

“I have yet to see any real-world examples of new nuclear development for which all of these questions can be answered in the affirmative, and I am sceptical that I ever will,” said Liz Krueger, a Democratic state senator representing Manhattan.

But Hochul expressed confidence about the effort.

“Some people say you can’t clean the grid and grow it at the same time. Sounds like defeatism to me,” she said. “Harnessing the power of the atom is the best way to generate steady, zero-emission energy.”