Tennessee’s growth and attractive business climate have been a net benefit to the state, but anyone will tell you there have been some growing pains. One of the most pressing issues is Tennessee’s need for more energy. The state currently uses three times as much energy as it produces, and a 2025 survey of business executives shows, for the first time ever, “energy availability” as the #1 factor in choosing to invest in opening a site—far more than skilled labor availability, tax rates, or available land. This rising trend of energy needs was noticed by state leaders, who, in 2023, established the State Energy Policy Council, setting the stage for national leadership in an energy renaissance.
Positioned to take on the increased energy needs of a modern economy, Tennessee is no newcomer to energy innovation. Since 1943, the Oak Ridge National Laboratory has called the Volunteer State home, helping America “solve its toughest challenges” in energy. Today, this facility stands as the Department of Energy’s largest research laboratory, and a perfect geographic location for small modular reactor (SMR) related development. SMRs are a fraction of the size and cost of traditional nuclear plants and have the ability to solve many of the energy issues facing the nation. This innovation and location led the U.S. Nuclear Regulatory Commission to issue the first construction permit for an SMR not in traditional innovation centers like the Bay Area or Boston, but right here in Oak Ridge, Tennessee.
Tennessee’s leadership around SMRs dates back to 2016 when site permits were applied for, and in 2019, it became the first state to have applications approved. This year, with the SMR beginning to be built, we’ve witnessed a flurry of developments in energy from private investment. In August, Google partnered with the TVA and Kairos Power on the SMR in Oak Ridge. September 2025 saw the TVA announce a partnership with NuScale and Entra1 Energy to deploy SMRs across seven strategic locations in the state. Further, in October 2025, Radiant announced a $280 million investment at Oak Ridge for its first one-megawatt portable nuclear generator. Despite energy—especially nuclear—being so heavily regulated, these partnerships are a shining example of federal, state, and local governments working closely with the private sector to enhance critical infrastructure while positioning for future growth.
Policymakers have undoubtedly set the canvas in Tennessee for clean, reliable energy production. By embracing the state’s nuclear roots, small modular reactor and micro modular reactor technologies will have a chance to thrive in a new era of energy independence. These actions were a fantastic first step that set the tone for state leadership at a national level. Still, more focus must be placed on catalyzing private capital to offset taxpayer funding while modernizing and enhancing the resilience of the infrastructure supporting this energy.
All stakeholders in Tennessee should be focused on fostering an environment that encourages investment in technology and innovators in the state. To secure a future for all residents while competing for innovation bases within the state, policymakers must ensure Tennessee’s grid infrastructure is enhanced. The energy bottleneck must be solved to ensure our state is not only competitive but a blueprint for all others to follow. Tennessee should not compete in a race to the bottom by providing corporate welfare to big data centers or technology companies, but it should work to make the state abundant in clean and reliable energy that is impossible for them to ignore.