Small modular reactors (SMRs) are being positioned as the solution to power-hungry data centers, but they face a critical threat: the same local opposition that has blocked wind farms and solar projects across America. As demand for electricity surges from artificial intelligence infrastructure, the nuclear industry is banking on SMRs as a flexible, emission-free alternative. Yet without a proactive strategy to navigate local zoning laws and community concerns, SMRs could repeat the regulatory mistakes that slowed renewable energy deployment by years.

What Happened to Wind and Solar That Could Happen to SMRs?

The trajectory of renewable energy deployment offers a cautionary tale. About 30 years ago, utility-scale wind farms were welcomed by communities eager for clean energy, tax revenue, and local investment. That sentiment shifted dramatically. As of early 2024, a USA Today analysis found that 15% of all counties nationwide had enacted moratoria or bans on new wind or solar projects. The speed of this reversal caught many energy developers off guard.

What makes this pattern particularly relevant for SMRs is that opposition proved indiscriminate. When utilities proposed natural gas turbines as alternatives in areas that had rejected renewables, communities opposed those too. The issue was not the energy source itself, but the perceived loss of local control over land use and infrastructure decisions. Social media amplified organizing efforts, making it easier for opponents to mobilize and spread concerns, whether grounded in fact or not.

Why Are SMRs Different From Other Energy Projects?

SMRs do have one structural advantage that wind and solar lack: federal preemption on radiological safety. This means local governments cannot regulate nuclear safety standards, which are governed by federal law. However, this legal shield covers only safety, not zoning or land-use decisions. The parallel case of federally regulated pipelines shows that federal preemption on safety does not prevent lengthy local battles over siting, permitting, and community acceptance.

The real challenge for SMRs is the same one that has plagued other energy infrastructure: unclear zoning frameworks, jurisdictional confusion between local, state, and federal authorities, and the speed at which disinformation can overwhelm evidence-based discussion. Many zoning ordinances were written decades ago and do not explicitly address nuclear facilities, leaving legal ambiguity about whether SMRs are even permitted in certain areas.

How Are States Responding to SMR Siting Challenges?

Several states are beginning to recognize the siting problem and are taking action to create clearer pathways for SMR development. The regulatory landscape is shifting, though unevenly across the country:

• Arizona: In June 2026, the governor vetoed a bill that would have preempted local zoning for SMRs at prior energy generation sites or collocated with data centers. However, the veto message signaled openness to revisiting the issue in future legislative sessions.
• New Hampshire: In March 2026, the governor created a task force to study and recommend policies supporting SMRs, including investigating local ordinances that hinder nuclear generation development.
• Louisiana: A similar policy review process was initiated in 2025 to address SMR regulatory barriers.
• Iowa: Over the past year, several counties have adopted specific local zoning provisions to regulate, rather than prohibit, nuclear energy facilities.
• Indiana: The state passed a law limiting state jurisdiction and ceding nuclear facility permitting to the federal government, though supporters and opponents disagree on whether this merely clarified existing federal authority or voluntarily surrendered state oversight.

These varied approaches suggest that states are beginning to learn from the renewable energy experience. Some are moving toward statewide standards or state-level permitting processes to ensure a clear path for needed energy infrastructure, rather than leaving decisions entirely to local zoning boards.

Steps for SMR Developers to Avoid the Renewable Energy Trap

The key to preventing SMRs from facing the same regulatory gridlock as renewables lies in proactive engagement and strategic planning. Here are the critical steps developers must take:

• Early Community Engagement: Developers should engage with local stakeholders before opposition hardens, working alongside data center partners to build understanding and support for projects in targeted geographies.
• Establish Clear Legal Frameworks: Developers must work with state and local authorities to ensure solid, workable legal frameworks exist that provide clarity on permitting, zoning, and jurisdictional authority before projects are proposed.
• Counter Disinformation Proactively: Getting a positive story out ahead of inevitable opposition is critical, as social media can rapidly amplify concerns whether grounded in fact or not.

"Energy advocates and SMR developers need to engage early (ideally in tandem with their large-load partners as appropriate) to determine the lay of the regulatory land in their targeted geographies, to get a positive story out ahead of the inevitable disinformation, and to ensure a solid, workable legal framework exists that provides clarity and support," explained Bret Dublinske, an attorney and shareholder at Fredrikson & Byron P.A.

Bret Dublinski, Attorney and Shareholder at Fredrikson & Byron P.A.

The stakes are high. Data centers powering artificial intelligence systems are driving unprecedented electricity demand, and utilities are increasingly turning to nuclear power as a solution. Several large traditional nuclear plants that had suspended operations are being restarted explicitly to serve data center loads. SMRs are positioned as the next wave of nuclear deployment because they require less space and are designed with enhanced safety features compared to older reactor designs.

"Siting has become a significant drag on other energy technologies; this is the SMR community's chance to ensure siting issues don't stop SMRs from achieving critical mass," stated Dublinski.

Bret Dublinski, Attorney and Shareholder at Fredrikson & Byron P.A.

History shows that opposition to energy infrastructure can mobilize quickly once it gains momentum. The combination of unclear zoning laws, jurisdictional ambiguity, and rapid social media organizing created a perfect storm for wind and solar projects. SMRs face the same structural vulnerabilities, but with the advantage of learning from those mistakes.

The key difference will be whether SMR developers and their data center partners act proactively to build community support, clarify legal frameworks, and establish state-level policies before local opposition hardens. The debate is ramping up, and history shows it can ramp quickly once it starts. For the SMR industry, the window for shaping the regulatory environment favorably is now.