Policy and Legal

Thanks in large part to rising power demand for data centers, policymakers have become increasingly supportive of nuclear energy—resulting in more than 200 nuclear-related bills filed in state capitols so far in 2025 (E&E News).

What’s going on: One of the few methods of electricity generation to have bipartisan backing, nuclear “has quietly gained traction in statehouses from Phoenix to Austin to Indianapolis” with dozens of state bills already either signed into law or now awaiting signature by governors.

Why it’s happening: “Unlike in the past, when nuclear power was pitched as a carbon-free back[stop] for aging coal plants, the selling point today is focused squarely on rising power demand, especially for power-thirsty data centers.”

• Nuclear power emits no greenhouse gases and can be generated year-round and in all weather.
• But efforts to make it more widely used in the U.S. have stalled in recent years, owing mainly to project delays and higher-than-anticipated costs.

What’s new now: “Desperate to bring economic investment and jobs to their states and districts, state legislators of both parties are courting ‘hyperscale’ data centers operated by technology titans” such as Amazon. “And lawmakers are keenly aware that power availability is at the top of the list of requirements.”

Case study: In Indiana, legislators have prioritized measures to hasten nuclear development.

• Lawmakers have passed bills to attract small modular reactors, the next generation in nuclear power generation “considered by many leaders in the state as a fitting replacement for an aging coal fleet. And Republican Gov. Mike Braun and other state officials see potential for making Indiana a manufacturing hub for the next-generation reactors.”
• Large projects in the state—including an $11 billion Amazon endeavor in New Carlisle—require large amounts of power.
• One state utility, AEP’s Indiana Michigan Power, is seeking $50 million in federal grants with the Tennessee Valley Authority for an early site permit to build a 300-megawatt SMR at the site of a coal-fired power plant that’s set to retire in 2028.

Other states go nuclear: “Arizona, Arkansas, North Dakota, Utah and Virginia have all enacted measures into law to encourage nuclear power.”

• The hardest-hitting bills authorize funding or financial incentives, such as Texas’ measure for a $350 million nuclear fund.

Our take: “Nuclear power is a critical component of the all-of-the-above energy strategy that we need to meet the demands of the manufacturing industry in the 21st century and to make America truly energy dominant,” said NAM Director of Energy and Resources Policy Michael Davin.