News | August 25, 2026

Industry Insights for August

U.S. and South Korea Open Shipbuilding Coordination Center

The U.S. Gerald R. Ford arrives at the Norfolk Naval Shipyard for Planned Incremental Availability on July 7, 2026.

The United States and South Korea officially opened a joint shipbuilding cooperation center in Washington, DC in July, launching operations for a $150 billion USD Korean investment in rebuilding American shipbuilding capacity.

The Korea-U.S. Shipbuilding Partnership Center (KUSPC) will serve as the hub for Korea’s “Make American Shipbuilding Great Again” (MASGA) initiative to coordinate on research, training, and supply chain improvements. The agreement allows Korean shipbuilders like Hanwha Ocean, HD Hyundai Heavy Industries, and Samsung Heavy Industries to develop equipment and components for U.S. shipyards.

Growth of AI Data Centers is Feeding the Resurgence of Nuclear Power in the U.S.

Pennsylvania's Three Mile Island nuclear power plant, soon to provide energy again for AI data centers.

The energy demands of hyperscale AI data centers is proving to be a tipping point in pushing the United States to invest in new nuclear power plants. The industry had been largely stagnant since the partial nuclear meltdown of the Unit 2 reactor at Pennsylvania’s Three Mile Island plant in 1979. No new plants were approved for construction in the United States until 2012.

Today, the Unit 1 reactor at Three Mile Island is slated to be restarted by 2027 to provide power for Microsoft’s AI data center projects over the next 20+ years. There are 2,600+ gigawatts in projects waiting to connect to the U.S. power grid with a 5+ year wait.

Deep Sea Oil and Gas Drilling Expanding Rapidly

The oil and gas industry is moving to a new frontier to find the resources to fuel the world’s growing energy needs: the deep sea. Investments in deep sea oil and gas drilling have exceeded $200 billion USD in 2026, which is more than double the average of the past decade combined. An additional $2.5 trillion USD in spending is projected by 2035.

Deep sea operations bring unique challenges (such as extreme cold and high pressure near the ocean floor) that require specialized equipment that can withstand harsh conditions and provide accurate, real-time data throughout the drilling process.

U.S. DOT Proposes Eliminating Public Transportation Funding

Heavy traffic on the George Washington Bridge leading into New York City

U.S. Department of Transportation Secretary Sean Duffy has proposed eliminating the mass transit account of the government’s Highway Trust Fund. Sec. Duffy revealed the proposal in a letter to select senators that called for prioritizing motor vehicles over public transportation.

The mass transit account provides 85% of federal funding for public transit and passenger rail. Currently, the House is considering a bill that would provide $87.6 billion for the account each year from 2027 to 2031.