In the quest for sustainable and reliable energy sources, South Carolina's state-owned utility, Santee Cooper, is eyeing a bold move to restart construction on two mothballed nuclear reactors at the Virgil C. Summer Nuclear Power Station. This ambitious plan, initially abandoned in 2017 due to massive cost overruns and delays, is now being reconsidered in light of the surging demand for power driven by AI data centers.

The Virgil C. Summer Nuclear Power Station, located near Jenkinsville, South Carolina, was once heralded as a significant step forward for nuclear power in the United States. Construction on the two new reactors began in 2008, but by 2017, the project had spiraled out of control, with costs ballooning from $9.8 billion to $25 billion. The failure to complete the reactors not only left the project less than 40% complete but also pushed Westinghouse, the lead contractor, into bankruptcy. This fiasco also led to securities fraud convictions for two executives at SCANA, Santee Cooper's partner in the project.

Despite this troubled history, Santee Cooper is optimistic about reviving the project. The utility is seeking partners to finance and complete the reactors, aiming to capitalize on the growing interest in nuclear power as a clean energy source for data centers. The potential buyers could include tech companies looking to secure reliable, zero-carbon power for their energy-intensive operations.

The timing of this move is strategic. The tech industry, driven by AI and data centers, is experiencing a surge in power demand, making nuclear energy an attractive option. Microsoft, for instance, recently signed a deal with Constellation Energy to restart a reactor at Three Mile Island, while Meta is seeking developers to propose 1 to 4 gigawatts of new nuclear capacity. Santee Cooper aims to market the V.C. Summer site as the only location in the U.S. capable of delivering 2,200 megawatts of nuclear capacity on an accelerated timeline.

However, the path to restarting the project is fraught with challenges. The reactors' construction was halted with significant costs already incurred, and the utility must now find buyers willing to take on the remaining work. Additionally, the project's history has left South Carolina ratepayers footing a $2 billion bill for reactors that never generated power. Any deal to restart the project will need to address these financial burdens and gain political approval.

Santee Cooper's CEO, Jimmy Staton, emphasized the renewed interest in nuclear energy, driven by advanced manufacturing investments, AI data center demand, and the tech industry's zero-carbon targets. The utility is working with investment firm Centerview Partners to field proposals from potential buyers, with a deadline set for May 5.

While the potential benefits of completing the reactors are clear—providing a significant boost in power capacity and meeting the growing energy needs of the state—the project's past failures cast a long shadow. The Vogtle Electric Generating Plant in Georgia, which used the same design and faced similar delays and cost overruns, only recently became operational after years of delays and billions in overruns.

Despite these challenges, the revival of the V.C. Summer project could be a game-changer for South Carolina and the broader nuclear industry. It could set a precedent for other abandoned nuclear projects and provide a much-needed boost to the state's energy infrastructure.

In conclusion, Santee Cooper's bid to restart the V.C. Summer Nuclear Power Station is a bold gamble driven by the growing demand for clean, reliable energy. While the project's history is fraught with failures, the potential benefits and the current interest from the tech industry offer a glimmer of hope. The success of this endeavor will depend on finding the right partners, navigating complex political dynamics, and ensuring that the lessons of the past are not repeated.