Indiana is banking its energy future on nuclear power, and the state's most influential company is joining the effort.
Why it matters: As a round-the-clock, no-emissions energy source, nuclear power is seen as critical to meeting AI data centers' massive electricity needs.
Driving the news: Pharmaceutical giant Eli Lilly has signed a letter of intent to partner with the state on creating "a future pathway for nuclear energy solutions in Indiana, including small modular reactors and other advanced nuclear technologies."
The big picture: Small modular reactors (SMRs) are units that, theoretically, can be factory-built and assembled on site.
- Yes, but: Supply-chain issues are a limiting factor in being able to build multiple plants quickly.
State of play: Under its agreement, Indiana and Lilly will spend two years examining the technical, economic, regulatory and environmental feasibility of bringing nuclear energy solutions to the state.
- Success could help Lilly with its energy needs.
- For Gov. Mike Braun, it could be the answer to his policy priority of lowering energy costs.
What they're saying: "Advanced nuclear technology represents the kind of bold, clean energy solution our state needs to power the next generation of innovation, and it directly supports Lilly's own commitment to reduce our environmental footprint," Lilly chair and CEO Dave Ricks said in a statement.
Zoom in: Lilly was the first confirmed tenant of the LEAP District in Boone County, a development with massive energy needs.
- Lilly is investing $13 billion into a research and medicine-manufacturing facility in the district, while Meta, Facebook's parent company, broke ground this year on a $10 billion data center.
- The letter of intent says Lilly may collaborate in "on-site screening discussions for the LEAP Research and Innovation District or other Lilly-affiliated locations."
Reality check: The country's first commercial SMR remains years away.
- Building nuclear power plants in the U.S. requires clearing federal and state regulators and securing billions in financing.
- Other attempts at SMRs have so far been plagued by cost overruns and construction delays.
