South Carolina’s long-dormant nuclear power facilities may be on the verge of a remarkable resurgence. A private firm has recently submitted a $2.7 billion proposal to state-linked utility Santee Cooper, offering the possibility of utilising electricity generated from these previously inactive plants. While discussions are still in the preliminary stages, negotiations between Santee Cooper and Brookfield Asset Management could continue over the next two years, during which both operational and financial details will undergo rigorous scrutiny.
Under the terms of the proposed arrangement, Brookfield would retain at least 75% of the electricity produced, enabling the company to supply high-demand clients, including major data centres. Santee Cooper’s share would depend on its investment in reactivating two partially built reactors. Both parties would retain the right to withdraw from the agreement, although Brookfield has already agreed to cover ongoing negotiation costs and the remaining project expenses.
Historically, Santee Cooper was a minor partner in the failed V.C. Summer nuclear project, which aimed to construct two new reactors but ultimately collapsed. At the time, combined investments by the state and private utility partner South Carolina Electric & Gas exceeded $9 billion. The project’s failure led to legal action against four executives, resulting in sentences ranging from imprisonment to home confinement, while regulators, shareholders, and customers suffered significant financial losses.
Some reactors in the region remain derelict, with concrete and steel structures severely deteriorated, though one neighbouring reactor has been operational since 1984. Speaking at a board meeting on Monday, Santee Cooper CEO Jimmy Staton said, “Since 2017, our customers have been paying for this asset. Now is the time for them to see tangible benefits.” If implemented, the proposal could substantially reduce Santee Cooper’s electricity debt.
The demand for power in the United States is increasing rapidly, driven in part by the growth of data centres, but significant challenges remain before the project can be revived. Equipment and structures exposed to the elements for eight years must be assessed for reuse, and new construction permits and operational licences will be required. While Brookfield’s proposed reactor designs are proven, they are costly; a similar reactor in Georgia reportedly cost more than $17 billion to complete as of 2023.
The proposal, if successful, could mark a pivotal moment in South Carolina’s energy landscape, potentially transforming long-idle facilities into a critical source of reliable, high-demand electricity.