Nuclear power has re-emerged as a critical piece of the global electricity system as artificial intelligence infrastructure drives an enormous surge in power demand worldwide.
For years, nuclear energy appeared trapped in long-term decline following disasters at Fukushima, Chernobyl and Three Mile Island. However, the rapid expansion of data centres and AI computing has dramatically shifted the conversation around atomic power.
Global nuclear generation once supplied roughly 18 per cent of worldwide electricity during the late 1990s. That figure later fell to about nine per cent as public opposition, strict regulations and construction delays slowed new reactor development.
Now, utilities and governments face mounting pressure to secure reliable electricity sources for increasingly power-hungry economies. Additionally, AI infrastructure operators require uninterrupted electricity around the clock, creating fresh demand for dependable baseload generation.
Goldman Sachs Research estimates global data centre electricity demand could climb 175 per cent by 2030 compared to 2023 levels. Consequently, nuclear energy has regained strategic importance alongside renewables and natural gas.
The renewed momentum has lifted companies throughout the nuclear supply chain. Constellation Energy Corp. (NASDAQ: CEG), Cameco Corporation (NYSE: CCJ) (TSE: CCO) and Centrus Energy Corp. (NYSE: LEU) have all benefited from growing investor interest in the sector.
Meanwhile, exchange-traded funds tied to uranium miners, reactor operators and nuclear infrastructure companies have also attracted stronger attention from investors seeking broad exposure to the trend.
The industry’s earlier decline largely followed major nuclear accidents that reshaped public perception and government policy. Furthermore, tighter regulations increased costs and extended reactor construction timelines across many countries.
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AI has been a major catalyst for nuclear renaissance
Despite those setbacks, nuclear generation recently reached a new milestone. According to the World Nuclear Association, reactors worldwide generated 2,667 terawatt-hours of electricity during 2024. That figure surpassed the previous record of 2,660 terawatt-hours set in 2006.
Several factors now drive the sector’s renewed expansion. Japan has restarted reactors following lengthy safety reviews, while China, India and South Korea continue building additional capacity. Meanwhile, the United States and France remain major producers of nuclear electricity.
The International Energy Agency stated in its Global Energy Review 2026 report that approximately 78 gigawatts of nuclear capacity remain under construction across 15 countries.
Much of that capacity originally targeted economic growth and carbon reduction goals. However, AI infrastructure has increasingly become a major catalyst behind future electricity planning.
Modern data centres require extremely stable power supplies because outages create severe operational and financial risks. Consequently, intermittent renewable energy sources cannot independently satisfy those reliability requirements.
Nuclear plants operate at full capacity more than 90 per cent of the time, making them attractive for large-scale computing facilities. Additionally, reactors provide carbon-free electricity while reducing dependence on fossil fuels.
The International Atomic Energy Agency (IAEA) expects global nuclear operating capacity to more than double by 2050. The organization estimates worldwide capacity could eventually reach 2.6 times 2024 levels.
Small Modular Reactors, commonly called SMRs, have become a major focus within the industry. These smaller reactors promise lower construction costs, faster deployment timelines and more flexible installation options.
However, the industry still faces major challenges despite growing enthusiasm from governments and investors. Cost overruns, permitting hurdles and supply-chain limitations continue slowing many projects worldwide.
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Multiple ETFs are providing options for exposure
Most next-generation reactor technologies also remain years away from meaningful commercial deployment. Furthermore, analysts expect many advanced reactor systems will not achieve large-scale adoption until the 2030s.
For investors, exchange-traded funds offer a way to gain diversified exposure across the broader nuclear market. These funds spread risk across utilities, uranium producers, reactor developers and engineering firms.
The VanEck Uranium and Nuclear ETF (NYSEARCA: NLR) remains one of the sector’s largest investment funds. The ETF controls approximately USD$4.80 billion in net assets and holds 29 companies tied to uranium mining and nuclear generation.
Constellation Energy currently represents the fund’s largest holding with an 8.24 per cent weighting. Meanwhile, the ETF has gained 5.4 per cent year to date while charging management fees of 52 basis points.
The Range Nuclear Renaissance Index ETF (NYSEARCA: NUKZ) provides exposure to 46 companies operating throughout the nuclear fuel and energy business. Additionally, the fund manages approximately USD$857.2 million in net assets.
Cameco holds the largest position within the fund at 9.70 per cent weighting. NUKZ has risen 11.4 per cent year to date and charges annual fees of 85 basis points.
The Themes Uranium & Nuclear ETF (NYSEARCA: URAN) focuses on companies involved in uranium mining, refining, infrastructure and nuclear technology development. The fund currently holds 41 companies across the broader industry.
Cameco also represents the fund’s largest holding with a 9.08 per cent weighting. Furthermore, URAN has gained two per cent year to date while charging fees of 35 basis points.
The First Trust Bloomberg Nuclear Power ETF (NYSEARCA: RCTR) offers exposure to utilities, uranium suppliers and nuclear engineering companies. The fund manages approximately USD$23.3 million in assets.
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