The momentum of AI is trickling down to nuclear power

Source : MarketScreener: The momentum of AI is trickling down to nuclear power https://www.marketscreener.com/news/the-momentum-of-ai-is-trickling-down-to-nuclear-power-ce7c5ed2d08bf320

by Eloi Suinot • 11 August 2025

In 2024, global nuclear energy production quietly reached a record high. But this growth is far from uniform, coming mainly from countries with long-term state-led infrastructure programs rather than Western democracies.

Between 2005 and 2024, 104 reactors were commissioned worldwide, while 101 were shut down. China alone connected 51 new units to the grid without closing any. Outside China, the picture is much less favorable: 53 openings for 101 closures, a net decrease of 48 reactors.

While the United States remains the world’s leading producer (29.2%), its fleet is aging.

Comparison of the average age of reactors in the United States (left) and China (right)

(Source: World Nuclear Industry Status Report)

Faced with the expected increase in electricity demand and in order to maintain US energy dominance, President Donald Trump has signed several executive orders to accelerate the development of nuclear power. The strategy can be summarized in two parts: simplifying regulations and quadrupling nuclear energy consumption by 2050.

AI as a driving force

In early July, the US Department of Energy estimated that peak energy demand would increase by at least 100 gigawatts by 2030—enough energy to power more than 80 million homes—half of which would be linked to data centers.

According to Goldman Sachs, global energy consumption by these data centers is expected to grow by more than 160% by 2030 compared to 2023.

While natural gas, renewables, and batteries will all have a role to play, nuclear power has some decisive advantages. According to the US Energy Information Administration, its capacity factor is 92.5%—in other words, it operates at nearly full capacity all year round—compared to 56% for natural gas and around 40% for coal. In addition to this consistency, nuclear power produces no CO2 emissions and is less sensitive to short-term fluctuations in fossil fuel prices.

Small reactors, big hopes

Construction delays and heavy regulation remain its weaknesses. The industry is therefore focusing on small modular reactors: less cumbersome, quicker to deploy and better accepted by local communities thanks to reduced safety requirements.

The renewed political interest in nuclear power has translated into renewed investor appetite, reinforced by the commitment made at COP28 in 2023 to triple global capacity by 2050. But in 2025, it is above all the explosion in demand linked to AI that is driving the sector’s performance.

The enthusiasm is there, but supply remains limited on the markets. A strategic sector par excellence, the French case perfectly illustrates the trend, with EDF having been fully nationalized since 2023.

According to the Financial Times, several companies want to take advantage of the momentum by turning to the stock market. Among them, Terra Innovatum, Terrestrial Energy, Eagle Energy Metals, Holtec International, and Quantum Leap Energy are examining possible solutions.

Even though nuclear power has a reputation for delays, cost overruns, and endless construction projects, investors are now convinced that it is here to stay.

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