Posted on January 23, 2025 by Bryson Roberson and Hannah Devereaux
U.S. power use is projected to hit record highs in 2024 and 2025, with electricity demand expected to rise 9% by 2028. Several states are deciding to act now, and positioning nuclear as a key solution to meet growing needs and attract early business opportunities.
The time is ripe: 2024 showed the strongest wave of interest in nuclear power development from industries other than utilities since construction began on Vogtle over a decade ago. Tech giants like Google, Amazon and Microsoft have made deals with nuclear developers to meet clean energy goals in response to soaring electricity demand fueled by AI investment.
These developments reflect years of strong bipartisan support and policy wins. The growing collaboration among project developers, utilities, and major corporations underscores the critical role nuclear power will play in meeting future energy demand.
The U.S. currently consumes 4,300 TWh of electricity annually, with 60% generated from fossil fuels, 19% from nuclear power, and 21% from renewables. Surging energy demand from data centers and manufacturing growth is driving states to seek more reliable power. Electrifying these industries could add 6,000 to 10,000 TWh to grid demand, more than tripling current electricity consumption. This dramatic increase stresses the importance for states to expand clean energy generation and grid infrastructure. Large industrial economies, like Indiana, West Virginia and North Dakota where industry consumes ~50% of energy, are seeking additional energy generation sources, including nuclear, to meet demand.
Federal Programs and Incentives for Nuclear Energy
While federal policy drives broad nuclear innovation, states play a critical role in actually building and deploying the nuclear energy. The U.S. has seen early mover states collaborate with developers to streamline permitting, reduce delays and support early-site preparation. This state-level action is crucial for moving projects from concept to reality.
U.S. State Limits on New Nuclear Deployment
Several states have recently lifted historical bans on nuclear development or passed updated policies. West Virginia ended a 25-year ban, and Illinois repealed its 36-year moratorium. Connecticut passed legislation exempting the Millstone Power Station from the state’s nuclear construction moratorium, allowing for potential new reactor development at the site. Montana, Kentucky and Wisconsin also removed bans, signaling a shift toward nuclear for grid reliability and economic stability.
In April 2024, Georgia celebrated the launch of Units 3 & 4 at Plant Vogtle, two of three U.S. commercial reactors built in the 21st century, marking a major milestone in U.S. nuclear leadership. Terrapower bolstered this momentum, building the Natrium Reactor in Kemmerer, WY, a project supported by the Advanced Reactor Demonstration Program (ARDP). Vogtle’s completion and projects like Natrium are revitalizing interest in nuclear energy. This includes the restarts of decommissioned plants in Michigan and Pennsylvania, as well as new policies creating energy funds and strengthening public-private partnerships.
Governor Mike Braun released his Freedom and Opportunity Agenda, which includes support for advanced nuclear power in the state.
Tennessee is advancing nuclear innovation by leveraging Oak Ridge National Laboratory (ORNL) and strategic partnerships.
Texas released a landmark report in response to Governor Greg Abbott’s 2023 directive to the Public Utility Commission of Texas (PUCT) to position Texas as a leader in advanced nuclear energy.
Governor Spencer Cox is driving nuclear innovation in Utah with his 2025 budget announcement, prioritizing site identification, permitting readiness, and creating the infrastructure and economic ecosystem needed to enable nuclear leadership.
Virginia’s load growth is projected to double by 2039, the highest electricity demand in the nation, causing the state to position itself to lead in new reactor development.
A unified state-federal policy effort is essential to unlocking nuclear’s potential, meeting growing energy needs and achieving a clean, reliable future. Federal incentives alone cannot ensure the economic viability of advanced nuclear projects. Because of this, states are taking on their own initiatives to complement federal policies. There is not a one-size-fits-all approach to deploying new nuclear; states deserve to optimize their own resources in conjunction with federal resources to meet their power needs.
