Eli Lilly and Indiana have signed a two-year partnership agreement to explore small modular reactors (SMRs), advanced nuclear technology that produces a fraction of the power of traditional nuclear plants, as a way to meet the state's surging energy needs. The announcement, made by Governor Mike Braun on April 16, reflects growing pressure from data centers straining Indiana's electrical grid and rising utility bills for residents .

What's Driving This Nuclear Partnership?

Indiana faces a critical energy crunch. Technology companies have built massive data centers across the state that connect to the existing power grid, putting unprecedented strain on infrastructure. At the same time, residents are dealing with rising electric utility bills. The state responded this year by overhauling utility regulations and adding consumer protections, but officials recognize that bringing new power generation online is essential .

Eli Lilly, one of the world's largest pharmaceutical companies, has its own energy demands. The company recently announced it developed a supercomputer called "LillyPod" in partnership with chip maker NVIDIA to accelerate pharmaceutical research. This AI-powered system will run on 100% renewable electricity within existing Lilly facilities by 2030, according to the company's commitment .

"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," said Dave Ricks, CEO of Eli Lilly.

Dave Ricks, CEO at Eli Lilly and Company

Governor Braun framed the partnership as a path to lower energy costs for Indiana residents. "Indiana is leading on nuclear power, because more energy means lower energy prices for Hoosier families," he stated .

What Will This Partnership Actually Do?

The agreement between Lilly and Indiana's Office of Energy Development outlines several areas of collaboration. Rather than committing to specific projects, the two parties are laying groundwork for potential future cooperation. The partnership will focus on feasibility studies, technology evaluation, regulatory coordination, and workforce development .

The agreement also mentions the possibility of connecting new nuclear energy to the LEAP Research and Innovation District in Lebanon, which will host a $10 billion data center campus built by Meta. This suggests that Indiana officials are thinking strategically about clustering energy-intensive facilities near new power sources .

• Planning and Feasibility: The partnership will explore the technical and economic viability of building small modular reactors in Indiana.
• Regulatory Coordination: Lilly and the state will work together on permitting, regulation, and policy frameworks to streamline nuclear facility development.
• Grid Integration: The agreement includes plans to connect new nuclear energy to Indiana's existing power grid infrastructure.
• Workforce Development: Both parties will collaborate on training and economic development related to nuclear energy jobs.

It's important to note that this agreement is not a binding contract. The two-year partnership, which became effective when Braun signed it on March 30, is exploratory in nature. Any actual construction or formal commitment would require separate agreements .

How to Understand Small Modular Reactors

• Smaller Scale: SMRs produce a fraction of the power output of traditional nuclear plants, making them suitable for regional or industrial applications rather than powering entire states.
• Flexible Siting: Because they're smaller, SMRs can potentially be built in more locations than conventional reactors, though they still require significant infrastructure and safety measures.
• Industrial Use: Companies like Lilly are interested in SMRs because they could provide dedicated, clean power for energy-intensive operations like AI computing and pharmaceutical research.

The timing of this announcement is significant. Earlier this year, Indiana lawmakers passed a law that removes state-level regulatory barriers for nuclear facilities. The law eliminated the Indiana Department of Environmental Management's authority to issue permits for new nuclear facilities or hold public hearings on nuclear safety. State lawmakers said this aligns Indiana law with federal regulations, which have also been loosened to accelerate nuclear reactor development .

The partnership reflects a broader trend: as artificial intelligence and data centers consume ever-increasing amounts of electricity, companies and states are exploring nuclear energy as a carbon-free alternative to fossil fuels. For Lilly, which has committed to running its AI infrastructure on renewable electricity, nuclear power offers a way to meet that goal while supporting the state's energy needs .

Whether this exploratory agreement leads to actual construction remains uncertain. Spokespeople for Lilly could not be reached for comment about whether the nuclear partnership is directly connected to powering the company's new AI supercomputer. What is clear is that Indiana is positioning itself as a state willing to embrace nuclear technology to solve the energy demands of the AI era .