The U.S. has approved construction of what regulators describe as its first commercial small nuclear reactor as AI and data-center growth drives forecasts for higher electricity demand. The Nuclear Regulatory Commission (NRC) issued the Tennessee Valley Authority (TVA) a construction permit for one GE Vernova Hitachi BWRX-300 at the Clinch River site near Oak Ridge, Tennessee.
The reactor is designed to produce about 300 megawatts of electricity using natural circulation and passive safety systems. The permit allows TVA to build the plant, but it does not authorize fuel loading or commercial operation. TVA will need a separate NRC operating license before the reactor can begin generating power.
The decision followed a 14-month NRC review that included safety and environmental evaluations and a mandatory hearing. TVA had already secured an early site permit for Clinch River in 2019 and later chose the BWRX-300 for further development.
First small nuclear reactor in US advances as AI power demand surges
The approval comes as utilities face rising electricity demand from data centers, manufacturing and population growth. TVA’s 2026 resource plan says its system may need 11 to 32 gigawatts of additional generation capacity through 2040, with data-center growth among the factors pushing demand higher.
"Four months ahead of schedule is what the new NRC looks like"
🇺🇸 @NRCgov chair Ho Nieh, on TVA's construction permit for a 300 MW BWRX-300 at Oak Ridge.
The formal review began in July 2025 and took 14 months instead of 18. An operating license comes later. pic.twitter.com/yMIDsbexrf
— Uranium2035 (@Uranium2035) September 30, 2026
The Energy Department selected TVA in December 2025 for up to $400 million in cost-shared funding to advance Clinch River and support possible follow-on deployments. Federal officials have also connected advanced nuclear development with demand for round-the-clock power from data centers and AI.
A separate Energy Department planning document identified a potential AI infrastructure site near Oak Ridge, about five miles from the proposed Clinch River reactor. The document described the location as a possible future opportunity tied to the area’s nuclear infrastructure, but it did not establish a power contract for the TVA reactor.
Construction permit is only one step toward operation
TVA has not announced a construction start date or final cost for the unit. The utility has said it is still working on cost-sharing arrangements with industry partners, while the NRC permit establishes the regulatory basis for construction.
The same BWRX-300 design is already under construction in Canada at Ontario Power Generation’s Darlington site. That project is expected to provide experience that could be applied to later deployments.
Other U.S. developers are considering the BWRX-300 for projects in Indiana, Ohio and Texas. The Clinch River permit could therefore have significance beyond Tennessee because it creates U.S. licensing experience for a design several companies are pursuing.
For now, the milestone remains limited: TVA can build Clinch River Unit 1, but it cannot operate the reactor until the NRC completes a separate licensing process.
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