The US is witnessing a resurgence in nuclear power, spurred by the escalating electricity demands of AI data centers, which consumed 183 terawatt-hours of electricity last year and are growing 15% to 20% annually. Experts are calling this a "nuclear renaissance" as the national grid, particularly the PJM grid covering 13 states and Washington, D.C., faces significant strain, with forecasted data center expansions pushing its capacity bill to $16 billion. To address this, the White House aims to quadruple US nuclear capacity from 100 gigawatts to 400 gigawatts by 2050, enough to power almost 300 million homes.
Major tech companies are engaging with nuclear developers; for instance, Microsoft and OpenAI are establishing power centers in Ohio and Illinois. Microsoft also committed over $1.5 billion to restart Pennsylvania's Three Mile Island nuclear plant, supported by a $1 billion federal loan. Silicon Valley venture capital firms, including DCVC, Founders Fund, and Andreessen Horowitz (a16z), have invested millions in nuclear fission and fusion startups. DCVC notably supports Oklo, a startup developing fast neutron reactors that use recycled nuclear waste, with OpenAI's CEO Sam Altman as chairman.
Simultaneously, the US government is making significant investments to rebuild the domestic nuclear fuel supply chain and reduce reliance on Russian uranium, which currently dominates the industry. Congress has banned enriched uranium imports from Russia starting in 2028. The Department of Energy awarded $2.7 billion to nuclear fuel makers, with $900 million each going to Centrus Energy Corp. for next-generation reactor fuel, General Atomics (backed by Peter Thiel), and Orano SA's subsidiary, which plans a $5 billion enrichment facility (Project IKE) near Oak Ridge, Tennessee. This new facility, along with Urenco's planned 50% expansion by 2036 of its New Mexico enrichment plant, aims to fulfill increased enrichment demand, especially for next-generation reactors.
The push for nuclear energy also includes advancements in small modular reactors (SMRs) and microreactors, which are faster and cheaper to deploy. The US Department of Energy allocated $400 million each to the Tennessee Valley Authority and Holtec to advance SMR deployments. In June, nuclear startup Antares successfully brought its Mark-0 microreactor to criticality, marking a key milestone in a Trump administration pilot program. This initiative, combined with the development of AP1000 standardized designs, is expected to make new reactor construction more cost-effective as more units are built, though no single company wants to be the first buyer of these new fleets.
Despite the long-term nature of expanding nuclear capacity, the immediate market impact is visible in the increased valuation of fuel suppliers and infrastructure firms. The synergy between the tech sector's growth and energy security policies is likely to sustain interest in the nuclear ecosystem. This strategic pivot aims to make nuclear power a reliable baseload energy source, addressing the immense and growing power requirements of AI infrastructure.
