Nuclear power is making a remarkable comeback in the U.S., driven by the insatiable energy needs of AI data centers, electric vehicles, and cryptocurrency mining operations. Nuclear energy is emerging as the best solution for reliability, efficiency and sustainability.
The Role of Big Tech
Tech giants like Google, Microsoft, Amazon, Tesla, and Meta are creating the demand. These companies require immense amounts of power for their hyperscale data centers, which are integral to AI and other data-intensive technologies. In Ireland, data centers already account for over 20% of the country’s electricity usage, while in some U.S. states, the figure exceeds 10%.
Microsoft recently made headlines by signing a deal with Constellation Energy to restart a nuclear reactor at the historic Three Mile Island. This move is particularly noteworthy given Three Mile Island’s association with past nuclear risks, the Three Mile Island accident of 1979. The decision signals a renewed confidence in nuclear power as a reliable and clean energy source.
Public Perception is Changing
For decades, public attitudes toward nuclear energy were largely negative, influenced by high-profile disasters and concerns over radioactive waste. However, these views are shifting. The global push for clean energy, coupled with economic pressures to reduce reliance on fossil fuels, has reshaped the narrative. Nuclear energy is now being recognized as a low-carbon, high-efficiency option that can complement renewable sources like wind and solar.
Key Players in the Nuclear Renaissance
This resurgence has also spotlighted innovative companies like NuScale Power and Oklo, which are pioneering advanced nuclear technologies. NuScale specializes in small modular reactors (SMRs) that are safer, more affordable, and easier to deploy than traditional reactors. Oklo focuses on micro-reactors that can serve smaller communities or remote locations. Both companies have seen their stock prices rise significantly over the past year, reflecting growing investor confidence in the nuclear sector.
My Takeaway
I am certain that demand for electricity is going to continue to grow. Whether it’s for all the new Electric vehicles that will come to the market, Artificial Intelligence processing, or crypto mining. Coal furnaces are being phased out, solar and wind power are growing but they are unstable or unpredictable. It seems that the only obvious answer to having a steady supply of energy is nuclear power. NuScale Power and Oklo are already the leaders of the space. I don’t know at what rate they will continue to grow, and investing in them could be too speculative for my taste, but it’s worth keeping an eye on them.
Other company to consider:
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