Nuclear power demand surge from AI data centers

What happened: Artificial Intelligence (AI) data centers are driving a surge in power demand, favoring nuclear energy due to its reliability and low emissions. Constellation Energy (CEG), the largest U.S. nuclear operator, is expanding its capacity, while pure-play developers like NuScale Power (SMR), Oklo (OKLO), Nano Nuclear Energy (NN), and X-Energy are positioning themselves to meet this growing need. NuScale's stock is bullishly priced due to its potential $1.75 trillion opportunity, while Constellation is pursuing 1 gigawatt of nuclear uprates by 2030. NANO Nuclear has partnered with Supermicro to power AI data centers, and Blue Energy & GE Vernova are developing a gas-plus-nuclear power plant.

Market impact: The nuclear energy sector is benefiting from increased demand and investment from AI data centers. Companies like CEG, SMR, OKLO, NN, and X-Energy are poised to grow as they secure long-term contracts and expand their capacity. The upcoming SpaceX IPO could also have surprising benefits for NuScale, as AI's energy-intensive nature drives demand for reliable power sources.

What to watch next: Investors should monitor NuScale's earnings, expected in late 2026, for updates on its progress and potential SpaceX synergies. Additionally, Constellation's nuclear uprates progress, slated for completion by 2030, will indicate the pace of AI-driven nuclear expansion. Lastly, keep an eye on X-Energy's product rollout, as its partnership with Amazon could accelerate its growth and further validate nuclear power's role in AI infrastructure.