Data centers are reviving US nuclear construction, and the insurance work won’t be on the reactor

[Marlin]

Data centers are reviving US nuclear construction, and the insurance work won't be on the reactor

https://www.insurancebusinessmag.com/us/news/construction/data-centers-are-reviving-us-nuclear-construction-and-the-insurance-work-wont-be-on-the-reactor-594388.aspx

[Core Content]

Rising electricity demand from tech data centers is reviving US nuclear construction plans. Insurance brokers and specialist markets are preparing for a surge in coverage needs for contractors, custom components, and new reactor designs. Standard commercial policies will handle non-nuclear work, while specialized pools cover the reactor cores.

The expansion relies heavily on unproven reactor technologies and a scarce domestic nuclear workforce. Project delays and supply chain bottlenecks for custom parts create unique underwriting challenges. Insurers must carefully manage the transition points between conventional construction coverage and specialized nuclear liability policies regulated by federal acts.

Specialist markets will place the nuclear risk. A long, first-of-its-kind build still needs bonds, comp, cargo and contractor programs

Tech companies building data centers are now among the biggest new buyers of US nuclear power. Most brokers will never place a reactor. Many could end up insuring the contractors, components and workers needed to build one.

On paper, the pipeline is large. A July analysis by the Breakthrough Institute counted 74 gigawatts of planned or prospective new US reactor capacity. Companies building hyperscale data centers account for 30 GW of that, or 41%. Breakthrough also found that nearly 60 GW of the total is in its earliest category. These are statements of demand rather than projects with a site, financing and a license.

Read the full article at Insurance Business:
https://www.insurancebusinessmag.com/us/news/construction/data-centers-are-reviving-us-nuclear-construction-and-the-insurance-work-wont-be-on-the-reactor-594388.aspx