Trump Administration Considers 5 States for $50 Billion Nuclear Investment as Data Centers Strain Power Grid

The Department of Energy will consider five states to host "innovation campuses" devoted to nuclear energy, which could bring them a total of 25,000 jobs and $50 billion in investment.

Utah, Oklahoma, Tennessee, Idaho, and Louisiana are the five finalists to host the innovation campuses, picked from applications of 26 states. Each could host a facility where the government studies the "full nuclear fuel cycle," as part of an effort to kick-start the nation's nuclear energy capacity.

The federal government is on a mission to nearly quadruple America's nuclear energy output—from 97 gigawatts in 2025 to 400 gigawatts by 2050. The nation's 97 nuclear reactors provide 19% of the nation's electric power.

That includes investing $17.5 billion to purchase nuclear reactors to open five more nuclear plants in the nation. And it comes as data center energy demands have sent energy costs rising for many American homeowners.

“These campuses will be massive generators of economic growth, create thousands of high-paying jobs, and be crucial to unleashing America’s nuclear renaissance," U.S. Secretary of Energy Chris Wright said. "The innovative concept is a direct result of President Trump’s leadership and ambitious directives to restore the domestic nuclear fuel cycle and get America’s nuclear industry growing again.” 

Energy demand

The Department of Energy wants to study every part of the lifecycle of nuclear fuel. That includes fabrication, enrichment and reprocessing of used nuclear fuel, as well as disposal. Some of the campuses might host advanced reactor deployment, power generation, and advanced manufacturing.

All told, the government thinks these efforts mean $50 billion in capital investment and 25,000 new jobs, as well as $10 billion in local tax revenue.

The government hasn't yet determined how it will divide up those research projects, or how many campuses it wants to build. It also didn't indicate more specific locations in the five finalist states where the campuses could go.

Those states that continue to pursue such an investment will sign hosting agreements in the future, DOE said.

Governors of the finalist states were positive about the potential for the project. Each said their state has a history with the energy industry—Tennessee for the Manhattan Project, Oklahoma for its oil boom. But the governors saw the project as a play for more energy independence.

“Utah welcomes the chance to help America reclaim its leadership in civil nuclear energy,” said Utah Gov. Spencer Cox. “We're building the advanced technologies that will drive affordable, abundant power across our country."

The request for proposals the government included with the application shows the states must prioritize training and apprenticeships, as well as links with local higher education, "to cultivate a
new generation of nuclear scientists, engineers, operators, and skilled trades."

Data centers and homeowners vie for energy

New, power-hungry data center projects are springing up across the country. Today, there are more than 4,000 data centers nationwide. Goldman Sachs estimated that data-center power demand will more than double from 2025 to 2027. But only about 50% to 60% of data center capacity will come online due to delays and cancellations, it said.

The pace of data center development has drawn a lot of concern from towns across the country. Some cities and states have enacted moratoriums on tax benefits that attract more developments. Other cities have banned their development altogether.

President Donald Trump earlier this year called on data center developers to provide their own power for projects. He was wary of homeowner complaints that the centers drive up electric bills.

In the request for proposals, the government said the projects would host in-house data centers. These will support scientific and national security applications. And they could bring more interest from private companies.

"The Campuses’ unique combination of nuclear expertise, secure infrastructure, and proximity to advanced reactor deployment may attract leading technology companies to establish data centers within or near the Innovation Campuses," the request states.