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Key Points
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The artificial intelligence (AI) revolution’s energy demands are prompting tech giants to adopt nuclear power as a scalable clean energy solution.
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Countries are developing special economic zones with dedicated nuclear reactors for data centers, significantly increasing demand for uranium.
Data centers currently consume 2% of global electricity, projected to rise to 8% by 2030, according to the International Energy Agency. Major companies like Microsoft, Amazon, and Alphabet are exploring nuclear fission to meet AI energy needs, as alternative sources like wind and solar cannot scale quickly enough.
Singapore is planning economic zones powered by small modular reactors, while California is extending the life of the Diablo Canyon nuclear plant. The advancements in nuclear technology include smaller, safer reactors, and tech firms are willing to invest significantly in these power sources. For instance, Amazon acquired a 960-megawatt data center next to a Pennsylvania nuclear plant, and Microsoft is hiring nuclear engineers to support its initiatives.
Uranium prices have tripled since 2020, reaching over $80 per pound, with demand continuing to outpace supply. Companies involved in this nuclear renaissance, including Oklo (developing microreactors), Cameco (a major uranium supplier), and Constellation Energy (operating the largest U.S. nuclear fleet), are poised to benefit from this trend.
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