Between 2005 and 2025, electricity demand in the United States increased by approximately 10% overall. However, projections indicate that demand will surge by 60% between 2025 and 2045. This anticipated growth creates a favorable environment for nuclear power, which provides consistent baseload electricity generation without greenhouse gas emissions.
A nuclear energy revival appears imminent, though the United States may not be positioned to fully capitalize on this trend immediately. Here’s what investors should understand and how they might benefit from nuclear expansion outside the American market.
Where Are New Reactors Being Built?
The challenge for investors hoping to participate in America’s nuclear resurgence is that significant development hasn’t materialized yet. While some companies with existing nuclear assets are experiencing benefits from rising electricity demand—such as Constellation Energy securing agreements with AI data center operators to extend reactor operational lifespans—and Southern Company recently completing construction of two new reactors, the broader nuclear construction boom is occurring elsewhere.
Currently, 77 nuclear reactors are under construction globally, with only three in the broader Americas region, according to nuclear fuel supplier Cameco. Asia dominates the landscape with 57 reactors under construction, including 37 in China, eight in India, and twelve across other Asian nations.
Nuclear Industry Service Providers Could Offer the Best Investment Approach
Direct investment in Asia’s nuclear expansion presents challenges for most U.S. investors. However, alternative approaches exist. Cameco, a major global nuclear fuel supplier, maintains a 50% stake in Westinghouse, which provides services to nuclear facilities worldwide. This positions Cameco to benefit from nuclear growth across all regions, including potential future expansion in the United States.
Brookfield Renewable offers another indirect approach to nuclear exposure. The company owns a diversified portfolio of clean energy assets including hydroelectric, solar, wind, and storage facilities, along with a stake in Westinghouse. Brookfield Renewable’s partnership share class offers an attractive yield of approximately 5%, making it appealing for income-focused investors compared to Cameco’s modest 0.2% yield.
New Reactor Technology Remains Promising but Unproven
Small modular reactors represent the future potential of nuclear energy, with companies like Oklo and NuScale Power developing this technology. The U.S. market presents substantial opportunities if SMRs gain widespread adoption, particularly for powering AI data centers. However, commercial viability remains uncertain.
Oklo recently faced setbacks when it was removed from a PJM Interconnection study, potentially delaying development by over a year. NuScale Power has identified potential customers but hasn’t finalized purchase agreements. Both companies remain speculative ventures suitable only for aggressive growth investors willing to accept significant risk, and both must still demonstrate reliable manufacturing capabilities.
Nuclear Power Is Growing, But Proceed with Caution
Nuclear power expansion is accelerating globally, though this hasn’t translated to substantial U.S. market opportunities yet. Investors should exercise caution given significant price volatility in companies like Constellation Energy, NuScale Power, and Oklo, which demonstrates how investor sentiment can outpace actual long-term business developments.
Industry suppliers such as Cameco and Brookfield Renewable may offer more stable entry points, as they can capitalize on nuclear growth worldwide while maintaining existing business operations. These companies provide diversified exposure to the nuclear industry’s expansion without the concentrated risks associated with individual reactor developers.
