Tech Giants Fuel Nuclear Power Resurgence for AI Data Centers
Staff Editor Nuclear Power Resurgence Fueled by Tech Giants’ Energy Demands
The nuclear power industry is experiencing a significant revival, driven by the increasing demand for clean energy and the growing power needs of AI data centers. Major technology companies, including Amazon, Microsoft, and Alphabet, are at the forefront of this trend, securing nuclear power deals to support their expanding energy requirements.
In a surprising turn of events, the Three Mile Island nuclear power plant is set to restart operations following a 20-year power deal with Microsoft. This development marks a significant milestone in the nuclear industry’s comeback.
Amazon and Microsoft are leading the charge in securing nuclear power to meet their AI data center needs. Amazon has made substantial investments in the sector, including a $500 million commitment to modular nuclear reactor development and the acquisition of a nuclear-powered data center for $650 million. Meanwhile, Microsoft has entered into a long-term agreement to purchase power from the Three Mile Island plant.
Industry experts view nuclear energy as a key solution for transitioning to carbon-free energy sources. Amazon Web Services has emphasized nuclear energy’s scalability and carbon-free benefits as crucial for addressing climate change.
Wall Street analysts are expressing optimism about nuclear energy projects, particularly the development of Small Modular Reactors (SMRs). These reactors are highlighted for their potential to reduce carbon emissions and provide sustainable energy solutions.
The nuclear power revival has led to significant gains in related stocks. Utility companies, uranium miners, and small-scale nuclear developers are experiencing substantial stock performance increases.
Notable nuclear stocks showing impressive year-to-date (YTD) performances include:
- Cameco (CCJ): $23.6 billion market value, +25% YTD
- BWX Technologies (BWXT): $11.3 billion market value, +62% YTD
- Oklo (OKLO): $2.4 billion market value, +88% YTD
- Constellation Energy (CEG): $83.5 billion market value, +128% YTD
- Vistra (VST): $43.0 billion market value, +224% YTD
- Nano Nuclear Energy (NNE): $589.6 million market value, +272% YTD
- NuScale Power (SMR): $1.8 billion market value, +481% YTD
As the nuclear power industry continues to gain momentum, it remains to be seen how this resurgence will shape the future of energy production and consumption in the tech sector and beyond.
