US utility Duke Energy (DUK) is exploring partnerships with "hyperscalers" to build new nuclear power infrastructure, while offsetting financial risks, Reuters reported Monday, citing company chief Harry Sideris.
Hyperscalers account for only a small portion of power requests being received by Duke, but they are the "highest" quality, because they provide investments, Sideris reportedly said in an interview with Reuters.
Duke intends to add more nuclear energy to its fleet, as electricity demand surges mainly due to electrification and data center buildout.
Data center companies and hyperscalers are open to discussing with Duke about the financial risks involved in nuclear expansion, Sideris told the news agency, noting that it has developed minimum-take contracts to protect customers.
The contracts reportedly require partners to pay for the infrastructure even if they do not consume all of the power originally asked for. The company also requires refundable deposits on the transmission system.
Duke intends to meet the rising energy demand reliably and affordably, and is focused on building infrastructure to provide the required generation capacity, Sideris reportedly said.
The utility's electric facilities, totaling 55.7 gigawatts, serve 8.7 million customers in North Carolina, South Carolina, Florida, Indiana, Ohio, and Kentucky, according to the company website.
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