U.S. electricity consumption, which barely moved between 2005 and 2020, is projected to increase by an average of 1.7% per year from 2025 through 2026, according to the Energy Information Administration (EIA). The surge is largely attributed to the rapid expansion of artificial‑intelligence data centers and a rebound in industrial manufacturing.
Why Nuclear Is Back in Focus
Data‑center operators can require as much power as a small city, said Seth Grae, CEO of nuclear‑fuel developer Lightbridge Corp. Nuclear plants, with their ability to deliver large, reliable baseload power, are being positioned as a key component of a diversified energy mix that can meet the new demand.
Trevor Yates, portfolio manager at Global X ETFs, noted that AI‑driven demand is part of a broader trend that includes electrification of transportation, reshoring of manufacturing, and global power consumption growth. Investors therefore see nuclear energy as a long‑term hedge against rising electricity needs.
Top Investment Options
Cameco Corp. (CCJ) – The Canadian miner is the world’s second‑largest uranium producer. Cameco also holds a 49% stake in Westinghouse Electric Co., a leading nuclear‑reactor equipment manufacturer. The company offers exposure to both uranium supply and established reactor technology.
Constellation Energy Corp. (CEG) – As the owner of the largest fleet of nuclear plants in the United States, Constellation supplies power to major tech firms. Meta Platforms has a 20‑year nuclear agreement with the utility, and Microsoft has arranged purchases from a Constellation‑revived unit at the Three Mile Island plant.
Centrus Energy Corp. (LEU) – Centrus is the only U.S. company licensed to produce high‑assay, low‑enriched uranium (HALEU), a fuel needed for many advanced and small modular reactors. In partnership with Oklo Inc., Centrus plans to supply HALEU for up to five micro‑reactors beginning in 2029.
ETF Choices for Broader Exposure
VanEck Uranium & Nuclear ETF (NLR) – This fund holds a mix of uranium miners, reactor builders, utilities and service providers. With an expense ratio of 0.52%, it offers diversified access to the entire nuclear supply chain.
Range Nuclear Renaissance Index ETF (NUKZ) – Similar to NLR, NUKZ tracks companies involved in advanced reactors, utilities, construction and fuel. Its expense ratio is 0.85% and it provides a defensive tilt, as utilities tend to be less volatile during economic downturns.
Considerations for Investors
While the nuclear sector shows promise, analysts caution that not all companies are at the same development stage. Advanced reactor designs are still emerging, and uranium prices can be volatile. Investors should assess each company’s commercial track record and the regulatory environment before committing capital.
Overall, the convergence of rising electricity demand, AI‑driven data‑center growth, and a constrained uranium supply chain is creating a compelling case for nuclear‑related investments, according to market experts.
Original reporting: Alexandria, VA News – WTOP News — read the source article.
