AI and Clean Energy Demand Fuel Global Nuclear Expansion

The global nuclear energy sector is entering a period of rapid expansion, driven by the dual pressures of decarbonization goals and the immense electricity needs of AI-driven data centers. With 15 new reactors expected to come online in 2026 and another 50 slated for 2027 through 2030, the industry is positioning itself as a cornerstone of the future energy mix. According to the World Nuclear Association, over 75 reactors are currently under construction globally, with an additional 120 in the planning stages, including 25 in the United States. The International Atomic Energy Agency (IAEA) has further bolstered this outlook, projecting that global nuclear capacity will more than double by 2050 compared to 2024 levels. In the U.S., Constellation Energy (CEG) stands as a primary beneficiary, with nuclear power accounting for approximately 86% of its output. The company recently secured a 20-year agreement with Microsoft to provide power from the restarted Three Mile Island facility. Meanwhile, GE Vernova (GEV) is leveraging its GE Hitachi unit to develop small modular reactors (SMRs), which offer faster deployment via factory assembly. The surge in capacity is also benefiting the upstream supply chain. Cameco (CCJ), a leading uranium producer based in Canada, is seeing increased demand for the mining, refining, and conversion of uranium necessary to fuel the expanding fleet of reactors. While some stocks have faced short-term volatility due to earnings guidance or project delays, the long-term trajectory remains bullish as governments and tech giants seek stable, baseload clean energy to support the AI revolution.