The Nuclear Regulatory Commission (NRC) has approved a permit application submitted by the Tennessee Valley Authority (TVA) for the construction of a small modular reactor (SMR) at the Clinch River site near Oak Ridge, Tennessee. This marks the second permit in the United States for an advanced commercial reactor and the first for the BWRX-300, a 300-megawatt reactor designed to be constructed faster and at lower cost than traditional nuclear power plants. The approval reflects growing interest in new energy sources, especially as demand for electricity rises sharply, driven largely by data centers that support artificial intelligence (AI) technologies. Electricity consumption by data centers is expected to reach 565 terawatt-hours in 2026, a 26 percent increase from the previous year. By 2030, this demand is projected to reach 290 gigawatts, and overall data center electricity use could surpass 1,200 terawatt-hours. Such high consumption could strain the power grid and affect all users of these facilities. The Trump administration has highlighted the expansion of nuclear energy as a key part of its energy strategy and a broader effort to compete with China in AI and energy sectors. Mike Skaggs, interim president of the TVA, said the permit is "more than a regulatory advancement: it is fundamental for the nuclear future of the United States." The Department of Energy supports the development of advanced reactors through its Pilot Reactor Program, established by President Donald Trump's decrees to speed up the development and deployment of new nuclear technologies. SMRs are designed to generate up to about 300 megawatts of electricity, roughly a third of the output of many conventional nuclear power plants. Their smaller, standardized components can be manufactured in factories and then transported to power plant sites, potentially reducing construction time and complexity. This allows operators to add reactors incrementally as electricity demand increases. However, the technology is largely unproven at a commercial scale in the United States, and the cost of building the first reactors remains a significant challenge. The TVA is currently negotiating cost-sharing agreements with industrial partners for the Clinch River project. The electricity provider emphasized that it does not want consumers to bear the full cost of deploying an unprecedented technology. "Our priority is to ensure that residents of the valley do not have to bear the costs of an unprecedented technology that benefits the nation and the world," said Skaggs. The TVA has not yet announced a construction start date. This approval is only the first major regulatory step, and the company will need to build the reactor and obtain a separate operating license from the NRC before it can begin producing electricity. The project will also test whether federal regulators can accelerate nuclear development while maintaining safety standards for nuclear facilities. The NRC completed its review of the TVA's application in 14 months, four months ahead of the scheduled date. "Four months ahead of schedule, that's what the new NRC looks like," said NRC chairman Ho K. Nieh. "Today's decision regarding Clinch River demonstrates that the new NRC is capable of making rigorous and credible safety decisions, allowing major American nuclear projects to move forward." Congress passed a law in 2024 to speed up the NRC's review process, and the Trump administration pushed for further streamlining of nuclear regulation. The Clinch River project is part of several ongoing efforts to revive nuclear construction in the United States. TerraPower, a nuclear company founded by Bill Gates, received a construction permit in March for a sodium-cooled reactor in Wyoming. This project is part of an effort to develop a new generation of nuclear power plants that can operate alongside renewable energy sources. Other companies are working on various reactor models, including those designed specifically to supply electricity to data centers and other large consumers. The goal is to meet the strong demand for energy. The massive demand from the AI industry for gas turbines has caused an unexpected shortage. This pressure exceeds the production capacities of industrial giants like GE Vernova, whose order books are full at least until 2031. This has caused a sharp increase in electricity costs and forced operators to extend the use of coal or turn to backup engines. Despite the pollution from fossil fuels, this deficit is considered the main obstacle to the development of AI in the United States.