Global Nuclear Renaissance: AI and Geopolitical Shifts Drive Demand for Uranium and SMRs

The global energy landscape is witnessing a resurgence in nuclear power, driven by the immense electricity demands of AI data centers and the fragility of fossil fuel markets. With 75 reactors currently under construction and another 120 planned worldwide, the sector is transitioning from a niche energy source to a critical pillar of energy security. China currently leads the expansion with 39 reactors under construction, while Japan is reactivating its nuclear grid and the U.S. Department of Energy aims to triple nuclear output by 2050. This 'nuclear renaissance' is further catalyzed by the closure of the Strait of Hormuz, which has laid bare the risks associated with traditional energy corridors. Canada's Cameco (CCJ) has emerged as a primary beneficiary, controlling 15% of the 164 million pounds of uranium extracted globally in 2025. Through its high-grade assets at McArthur River and Cigar Lake, and its 49% stake in Westinghouse, Cameco maintains a vertically integrated position across the fuel cycle. Financial performance in 2025 was robust, with revenue increasing 11% and diluted EPS surging 246% over the previous year. Parallel to large-scale plants, Small Modular Reactors (SMRs) are gaining traction as a decentralized power solution for AI clusters. BWX Technologies (BWXT) leverages its extensive history of miniaturizing nuclear power for the U.S. Navy—having built over 400 naval reactors—to lead the commercial SMR market. These factory-built units could potentially power data centers without relying on local grids. The convergence of tech-driven power demand and geopolitical necessity is creating a long-term bullish tailwind for uranium miners and reactor technology providers.