A shift is underway in the energy landscape: large-cap technology firms are signing long-term agreements to purchase nuclear power. These are not pilot projects; instead, they are large, multi-decade commitments tied to rising energy needs, especially from data centers and AI infrastructure. Several of these agreements involve next-generation Small Modular Reactors (SMRs), chosen for their safety, scalability, and around-the-clock reliability. These deals mark a new phase in nuclear energy’s evolution – one driven not just by government policies, but increasingly by commercial demand. As real capital flows in, nuclear is gaining validation as a credible energy source.
This demand has been aided by rapid technological progress. SMRs offer shorter construction timelines, smaller footprints, and flexible deployment. They also support more efficient fuels such as the High-Assay Low-Enriched Uranium (HALEU), which is now backed by $700 million in U.S. public funding under the Inflation Reduction Act to build a domestic supply chain. Beyond SMRs, the broader nuclear sector is evolving. Gen III+ reactors, advanced versions with improved safety and efficiency, are already operational. Gen IV reactors, offering reduced waste and higher energy yield, are expected later this decade. The pace and diversity of innovation suggests that nuclear energy is entering a commercially viable and deployment-ready phase.
Policy support has been strengthening as well. In May 2025, a bipartisan U.S. bill was introduced to fast-track reactor permitting and expand nuclear investment incentives. Germany reclassified nuclear as a form of renewable energy, aligning with France’s position and signaling EU convergence. At COP29 last November, over 30 countries pledged to triple nuclear capacity by 2050. Public opinion has also improved steadily. A 2025 Gallup poll shows U.S. support for nuclear energy has risen from 44% in 2016 to 61% in 2025. Moreover, as energy security remains a strategic priority post-Ukraine, nuclear energy’s role in clean, reliable baseload power is becoming harder to ignore.
The entry of mega-cap tech companies into long-term nuclear power contracts marks a point of inflection for the industry. These deals provide predictable long-term cash flows, improve project bankability, and reflect a broader shift from state-led support to market-driven demand. As this transition accelerates, we believe maintaining exposure to nuclear power is becoming increasingly important for any forward-looking energy portfolio.
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