Tennessee, 24 other states racing to develop nuclear mini-reactors

With the promise of newer, cheaper nuclear power on the horizon, two dozen U.S. states are vying to position themselves to build and supply the industry’s next generation as policymakers consider expanding subsidies and paving over regulatory obstacles.

Advanced reactor designs from competing firms are filling up the federal government’s regulatory pipeline as the industry touts them as a reliable, climate-friendly way to meet electricity demands from tech giants desperate to power their fast-growing artificial intelligence platforms.

Tennessee Gov. Bill Lee last month proposed more than $90 million to help subsidize a Tennessee Valley Authority project to install several small reactors, boost research and attract nuclear tech firms.

Long a proponent of the TVA’s nuclear project, Lee also launched Tennessee’s Nuclear Energy Fund in 2023, designed to attract a supply chain, including a multibillion-dollar uranium enrichment plant billed as the state’s biggest-ever industrial investment.

Last year, 25 states passed legislation to support advanced nuclear energy and this year lawmakers have introduced over 200 bills supportive of nuclear energy, said Marc Nichol of the Nuclear Energy Institute, a trade association whose members include power plant owners, universities and labor unions.

“We’ve seen states taking action at ever-increasing levels for the past few years now,” Nichol said in an interview.

Smaller reactors are, in theory, faster to build and easier to site than conventional reactors. They could be factory-built from standard parts and are touted as flexible enough to plunk down for a single customer, like a data center or an industrial complex.

Advanced reactors, called small modular reactors and microreactors, produce a fraction of the energy produced by the conventional nuclear reactors built around the world for the last 50 years. Where conventional reactors produce 800 to 1,000 megawatts, or enough to power about half a million homes, modular reactors produce 300 megawatts or less and microreactors produce no more than 20 megawatts.

Tech giants Amazon and Google are investing in nuclear reactors to get the power they need, as states compete with Big Tech, and each other, in a race for electricity.

The reactors could be operational as early as 2030, giving states a short runway to roll out the red carpet, and they face lingering public skepticism about safety and growing competition from renewables like wind and solar. Still, the reactors have high-level federal support, and utilities across the U.S. are working to incorporate the energy source into their portfolios.


A youth walks a dog past a prototype of a microreactor in Washington.
(AP Photo Pablo Martinez Monsivais)