Revolution in Nuclear Energy: How Smaller, Affordable Reactors Are Sparking a State-by-State Race for Investment

HARRISBURG, Pa. — The future of nuclear power in the U.S. is looking brighter as states gear up to tap into advanced technology. New, cheaper versions of nuclear reactors are on the way, aiming to meet the growing demand for electricity, especially from tech companies bolstering their artificial intelligence capabilities.

These advanced reactors could be operational by 2030, but they still face challenges. Safety concerns linger among the public, and they compete with renewable energy sources like wind and solar. Despite this, the federal government is backing nuclear energy, and many utilities are eager to embrace it.

In just the past year, 25 states have passed laws to support advanced nuclear energy. Marc Nichol from the Nuclear Energy Institute shared that over 200 bills aimed at boosting nuclear energy have been introduced this year alone. This represents a notable trend of increasing support for nuclear energy across the nation.

### Smaller Reactors, Big Potential

The new reactors, known as small modular reactors (SMRs) and microreactors, are designed to be easier to build and site than traditional reactors. Unlike older models that generate 800 to 1,000 megawatts of power — enough for about half a million homes — these smaller units produce significantly less. SMRs usually generate up to 300 megawatts, while microreactors cap out at about 20 megawatts. This flexibility allows lighter construction, enabling them to be placed closer to their intended power users, like data centers.

Tech giants like Amazon and Google are jumping into the nuclear game, recognizing the need for reliable energy as they expand their operations.

### States Taking Initiative

Many state leaders view nuclear energy as a clean solution for electricity. With older coal plants shutting down, they see advanced reactors as a vital option. For instance, Tennessee’s Governor Bill Lee has proposed a significant investment to develop several small reactors and attracted nuclear tech firms to the state.

In Utah, Governor Spencer Cox launched “Operation Gigawatt,” aiming to double the state’s electricity production in the next decade, with plans to allocate funds for preparing sites for nuclear power. Meanwhile, Texas, Michigan, Indiana, and Arizona are also exploring various incentives to promote nuclear energy investments.

### Looking Ahead

While excitement is building, reactors face significant hurdles. No commercial modular reactors are currently operational in the U.S., and a key project in Idaho was recently abandoned despite receiving federal funds. The U.S. Department of Energy projects a need for an additional 200 gigawatts of nuclear capacity to meet future energy demands and fulfill climate goals by 2050. Currently, the U.S. has under 100 gigawatts online, and though more than 30 advanced projects are planned, they alone will not cover the gap.

Financial support has poured in from the government, including billions in subsidies, aiming to boost the industry as it braces for future challenges.

### Concerns and Competition

The industry also grapples with major concerns over safety and efficiency. Edwin Lyman, a specialist in nuclear power safety, points out that the claims of reliability for these small reactors may not hold up, citing historical challenges in nuclear energy deployment.

Advanced reactors face intense scrutiny and must compete against improving renewable energy technologies, which are becoming more economical thanks to advancements in energy storage. As Brendan Kochunas from the University of Michigan explains, the rapid evolution of renewables could give them a substantial edge.

On top of that, the U.S. lacks the necessary infrastructure for manufacturing components for modular reactors. Experts like Kathryn Huff stress the need for increased uranium enrichment capacity to support new reactor development as well.

As the nuclear energy landscape evolves, all eyes will be on how states manage these emerging technologies while balancing energy demands, safety, and environmental responsibility.



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