Nuclear energy investment rises amid growing demand for data center power

The nuclear energy industry is experiencing a resurgence, with the World Nuclear Association projecting that power production could triple by 2050. This growth is driven in part by the rising electricity demands of technology firms, particularly for AI data centers, which require consistent, carbon-free power.

Investment in U.S. nuclear startups has increased, reaching $4.6 billion this year compared to $3.8 billion in 2025. Much of this interest focuses on small modular reactors (SMRs). Unlike traditional large-scale plants, SMRs are designed to be fabricated off-site in pieces and assembled on smaller footprints, making them suitable for localized industrial use such as desalination plants or factories.

Despite the influx of capital, significant hurdles remain. Analysts suggest that widespread commercialization of new reactor technologies may not arrive until approximately 2035. Challenges include complex regulatory processes, high upfront costs, and an emerging supply chain. Currently, there are only two new commercial reactors under construction in the United States and Canada, leading some experts to note that the nuclear renaissance is currently more visible on balance sheets than on construction sites.