Project Finance
Credit FAQ: How S&P Global Ratings Applies Its Project Finance Methodology to Nuclear Power Projects
Demand for nuclear power is gaining momentum globally as countries grapple with the need to meet decarbonization goals while also achieving greater energy security. At the same time, a surge in the number of energy-hungry data centers has created a need to expand capacity to meet the corresponding increase in demand for reliable low-carbon power.
Nuclear power plants may not be cheap, but they are increasingly seen as a solution worth investing in. In July 2025, the U.K. government made a final investment decision on Sizewell C, a new 3.2 gigawatt (GW) nuclear power plant located in southeast England. Subsequently, S&P Global Ratings assigned its 'BBB+' rating to a debt facility issued by Sizewell C Ltd. (SZC) (see Research Update: Sizewell C Ltd.'s HMG Term Facility Assigned 'BBB+' Rating; Outlook Stable, published Nov. 4, 2025). The project is the first nuclear power transaction to be publicly rated under our project finance methodology.
Sustainability Insights: Affordability Concerns Drive Credit Risks in U.S. Data Center Expansion
Rising electricity prices across the U.S. are prompting concerns about the impact of rapid data center development on energy affordability. Retail rates have risen by 38% over the last five years and by as much as 96% in the District of Columbia, according to the U.S. Energy Information Administration. These price increases have largely been driven by inflationary costs and increased capital spending on safety, reliability, and decarbonization, as well as electrification trends, higher capacity prices, and rising costs for wildfire mitigation in some cases. Data center expansion may have been a contributing factor to increased prices, particularly in some states, but it has so far not been the primary driver.
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