US approves first small modular nuclear reactor construction permit

The Nuclear Regulatory Commission (NRC) has granted the Tennessee Valley Authority (TVA) a permit to build a small modular reactor (SMR) at its Clinch River site near Oak Ridge, Tennessee. This is the second commercial advanced reactor permit issued in the U.S. and the first for the 300-megawatt BWRX-300 design, which developers claim can be constructed more quickly and affordably than traditional nuclear plants.

This approval comes amidst a push by utilities and technology companies to secure new electricity sources for rising demand, significantly driven by data centers supporting artificial intelligence. The Trump administration has advocated for expanding nuclear power, seeing advanced nuclear technology as vital for energy security and AI competition with China. TVA interim President Mike Skaggs emphasized that this permit is foundational for America's nuclear future and that the utility is seeking partnerships to share the costs of this pioneering technology, ensuring ratepayers are not solely burdened.

While TVA has not announced a construction start date, this permit is a crucial regulatory milestone. The utility will still need to build the reactor and obtain a separate operating license from the NRC. The NRC completed its review in 14 months, four months ahead of schedule, with Chairman Ho K. Nieh stating it demonstrates a streamlined regulatory process. Congress passed legislation in 2024 to accelerate NRC reviews, further pushing nuclear development.

The Clinch River project is part of a broader national effort to revitalize U.S. nuclear construction. Separately, TerraPower, a company founded by Bill Gates, received a construction permit in March for a sodium-cooled reactor in Wyoming. Other companies are also exploring various reactor designs, including some specifically aimed at powering data centers and other large electricity consumers.