WASHINGTON — The U.S. Department of Energy selected Tennessee, Louisiana, Oklahoma, Utah, and Idaho as finalists to host Nuclear Lifecycle Innovation Campuses on July 28, 2026. The department stated it will pursue projects to build the campuses in up to three states, though no final site selections have been announced and no timeline for narrowing the field was provided.

The department signed memorandums of understanding with the five finalist states. These agreements are non-binding, and the department stated that states must finalize host agreements by September 30. The initiative began in January when the department issued the first request for states to express interest. The department received 28 applications from 26 states for the program.

The department stated the Nuclear Lifecycle Innovation Campuses would support the full nuclear fuel cycle. This scope includes fuel fabrication, uranium enrichment, spent-fuel reprocessing, and final disposal solutions. The department added the campuses may also host advanced reactor deployment, power generation, advanced manufacturing, and data centers. Eligible projects could access federal loans worth billions of dollars.

The department estimated that a single campus could attract up to $50 billion in private investment. A single campus could generate as much as $10 billion in state and local tax revenues. The department further estimated that a single campus could create nearly 25,000 jobs.

"For the first time in decades, states are raising their hands to accept nuclear waste," said Mike Levin, a Democratic representative from California. Levin added, "Today’s selection of states is a monumental step in the right direction."

More than 95,000 metric tons of spent nuclear fuel and radioactive waste are currently stored at nuclear plants and former nuclear sites nationwide. Plans for a permanent underground storage facility at Nevada's Yucca Mountain have been stalled due to opposition from residents and officials.

Tennessee, Louisiana, Oklahoma, Utah, and Idaho have Republican governors. U.S. Energy Secretary Chris Wright said, "These campuses will be massive generators of economic growth.. and be crucial to unleashing America’s nuclear renaissance."

Tennessee is home to the Oak Ridge National Laboratory. The laboratory enriched uranium during World War II as part of the Manhattan Project. Tennessee is also home to the Y-12 National Security Complex.

More than 230 companies in Tennessee are involved in the nuclear industry. The Tennessee Valley Authority has a small modular reactor project at Clinch River. Data centers accounted for about 18% of the Tennessee Valley Authority's industrial power load last year. The utility expects the share of industrial power load from data centers to double by 2030. Tennessee's proposal centers on Oak Ridge. Standard Nuclear, Inc. entered into an Other Transaction Agreement with the department for a fuel production line authorization dated September 26, 2025, in Oak Ridge, Tenn.

"As the global epicenter of nuclear energy, Tennessee is honored to be selected as a potential host for a Nuclear Lifecycle Innovation Campus," said Bill Lee, the Governor of Tennessee. Lee added, "As our state answered the call during the Manhattan Project and helped shape the course of history, Tennessee stands ready once again to advance the safe, reliable energy solutions our nation depends on." Crews are still cleaning up radioactive material found in the groundwater near the former Kerr-McGee nuclear plant.

Idaho is home to the Idaho National Laboratory. Utah was a source of raw uranium for the Manhattan Project. The state signed a memorandum of understanding with the department to explore developing a site in Tooele County.

The department was established in 1977. PureSource News previously reported that three nuclear startups reached reactor criticality in a 2025 pilot. Another report noted that North Korea announced the opening of a nuclear bomb production facility.