Nuclear power plant life extension projects, which extend licensed operating periods from 40 to 60 or 80 years, are delivering additional generating capacity at costs substantially below new nuclear construction, according to US Energy Information Administration operational data. Operating costs at existing US nuclear plants average approximately $33 per megawatt-hour, compared with estimates of $90 to $120 per megawatt-hour for new nuclear construction. This cost differential has made license renewals one of the primary mechanisms for preserving nuclear capacity in the US fleet.
Twelve US nuclear reactors have received NRC approval for 80-year operating licenses, and the number of applications pending is at its highest level since the early 2000s nuclear renaissance period. The renewed interest reflects both the value of long-duration baseload capacity in AI-era electricity markets and the availability of federal production tax credits for existing nuclear generation included in the Inflation Reduction Act.
Corporate power purchase agreements tied to nuclear generation have become an increasingly common structure for US tech companies seeking 24/7 carbon-free electricity for data centers. Microsoft, Google, Amazon, and Meta have each announced nuclear offtake agreements in 2025 and early 2026. These agreements typically run 10 to 20 years, providing the revenue certainty operators need to justify capital investments in existing plant refurbishments and life extension projects.
Uranium spot prices have risen approximately 45 percent since 2023 amid growing supply concerns in the enrichment segment of the nuclear fuel cycle. The DOE has funded domestic uranium enrichment capacity through HALEU programs to reduce dependence on foreign sources, a security consideration that has elevated uranium's role in US energy policy discussions.
Source: US Energy Information Administration -- https://www.eia.gov/nuclear