The United States is preparing to provide up to $5 billion in federal loan financing to expand its existing nuclear power fleet. The move comes as surging demand from artificial intelligence drives a search for clean, round-the-clock electricity.The U.S. Department of Energy has announced a provisional funding agreement with Constellation. Under the plan, the energy firm will receive federal backing to overhaul and upgrade eight nuclear facilities. The selected plants, which comprise eight stations across Illinois, Maryland, and Pennsylvania, house multiple reactor units.The upgrades will add nearly 1.1 gigawatts of generation capacity to the power system. That is roughly the output of a brand-new commercial reactor, achieved entirely by boosting the efficiency and hardware of current plants.“These investments will add more reliable baseload power to the grid, help lower electricity costs, strengthen our nation’s energy security, and fuel long-term American prosperity,” said EDF Director Gregory A. Beard.Tech-driven power demandThe expansion comes as the tech sector races to secure dependable power for massive data centers. Running advanced artificial intelligence models requires continuous, baseload electricity. While wind and solar farms are expanding rapidly, their output fluctuates with the weather. Nuclear reactors, by contrast, run day and night without emitting carbon during generation.Energy planners expect the additional 1.1 gigawatts to deliver enough power for more than 930,000 households. The initiative is also forecast to create more than 10,000 engineering and construction jobs. The electricity will feed directly into two major regional networks. These are the PJM Interconnection in the east and the Midcontinent Independent System Operator across the central United States.Six plants across Illinois will see equipment upgrades: Braidwood, Byron, Clinton, Dresden, LaSalle, and Quad Cities. Work is also scheduled for the Limerick station in Pennsylvania and the Calvert Cliffs plant in Maryland.Rigorous technical evaluationsThe federal loan offer is not yet finalized. Before any funds are released, Constellation must clear rigorous technical evaluations and complete formal environmental reviews. It must also finalize legal agreements with the Department of Energy’s financing office.Even so, the pledge highlights growing momentum behind existing nuclear infrastructure. Earlier this month, Constellation struck a commercial partnership with Amazon to modernize Calvert Cliffs, Maryland’s sole nuclear power station.That commercial agreement aims to unlock more than $3bn in private infrastructure spending. It will upgrade the 1,790-megawatt plant and add roughly 190 megawatts of fresh zero-carbon capacity between 2030 and 2032.Crucially, the electricity from Calvert Cliffs will remain part of the public grid rather than being walled off exclusively for server farms. Amazon will draw power from the regional grid while helping underwrite the cost of capital improvements.Federal officials noted that the loan package includes options to fund further reactor upgrades at other Constellation sites in the future. For now, the push shows how governments and tech giants are aligning around existing nuclear plants. The goal is to power computing infrastructure without derailing emissions targets.