TVA to develop America’s first small modular reactor in Tennessee

MEMPHIS, Tenn. (WMC) - Tennessee Valley Authority, the utility that provides power to Memphis Light, Gas and Water to keep the lights on in Memphis, just received $400 million from the federal government to develop a new nuclear reactor. It’s called an SMR - small modular reactor - and this will be the first one built in America.

Between population growth and the proliferation of new AI data centers, the demand for energy is increasing exponentially. To meet that demand, TVA is looking at developing a technology only used in two other places right now: China and Russia.

“It is a big deal, and that’s why we’re taking the time to make sure we’re doing it right,” TVA spokesperson Scott Brooks told Action News 5.

TVA plans to build the SMR at its Clinch River site in East Tennessee near Oakridge. Brooks says Tennessee is a hub for energy innovation, working on expanding its nuclear portfolio since 2016.

“TVA has been leading the nation in developing technologies that provide energy security, and really that’s what this is all about: reliable, affordable, resilient energy for the region and also the nation,” he said.

The U.S. Department of Energy announced the grant this week.

“President Trump has made clear that America is going to build more energy, not less,” said U.S. Secretary of Energy Chris Wright, “SMRs will give our nation the reliable, round-the-clock power we need to fuel the president’s manufacturing boom, support data centers and AI growth, and reinforce a stronger, more secure grid.”

Governor Bill Lee’s administration says the DOE grant positions Tennessee as a national leader in next-generation nuclear energy.

Lee says this “marks a significant milestone for America’s energy dominance and underscores Tennessee’s position as a leader in clean, reliable nuclear energy to power the future.”

In 2025, Governor Lee and the Tennessee General Assembly included up to $50 million in the state budget to help accelerate the construction of SMRs and to support TVA’s application for the DOE grant.

In 2023, Governor Lee created the Nuclear Energy Fund and invested a total of $70 million to attract advanced nuclear technology companies to the state.

U.S. Senator Marsha Blackburn, a candidate for Tennessee governor, is also a big supporter of nuclear expansion.

“I am for more energy,” she told Action News 5, “I am for baseload because we know it’s going to be sustainable. It’s going to eliminate blackouts and brownouts.”

TVA, the nation’s largest public utility, already operates seven large nuclear reactors, generating 40% of the utility’s electricity supplied to 153 local power companies in seven states. MLGW is TVA’s largest customer.

An SMR is a compact nuclear power plant that can be prefabricated and assembled in a factory, then transported to the site, ready to use, fueled by uranium.

It would be the first SMR in the nation and the first step to developing even smaller, portable nuclear reactors, technology Elon Musk mentioned could power data centers like his xAI supercomputer - right on site.

Senator Blackburn shares his vision, going a step further, saying Tennessee could attract new business if portable nuclear power could be provided to companies.

“That next generation down, the micro reactors,” she said, “You could have that nuclear power base and have it right there wherever your production facility is. This is another tool in the toolbox cities and counties can use as they’re recruiting businesses.”

SMRs generate 200-300 MW, not as much as large reactors, but enough energy to power 175,000 homes. TVA says this cutting-edge technology is the key to America’s nuclear renaissance.

“TVA is on the ground floor of getting this technology and making it available for other utilities as well,” said Brooks, “so we’re going to be part of laying the groundwork to make this technology a reality across the country.”

If you’re of a certain age and the word nuclear makes you think of meltdowns at Three Mile Island or Chernobyl, Brooks says today’s nuclear energy is clean, safe and very heavily regulated by the Nuclear Regulatory Commission.

The total price tag for the SMR is unknown, as is the possible impact this could have on rate payers, who fund TVA.

The Clinch River SMR project is expected to be completed by 2032.

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