Nuclear sector gains momentum as AI demand reshapes US power markets
US electricity generation hits record highs, prompting utilities and tech giants to seek reliable baseload power solutions through nuclear innovation.
Nuclear energy is experiencing a renewed surge in investor and industry interest, driven primarily by the energy-intensive expansion of the artificial intelligence sector. United States electricity generation reached new all-time highs in both 2024 and 2025, reversing a period of stagnation that persisted from 2005 to 2023. This sharp increase in demand is largely attributed to the rapid growth of data centres required to support AI operations, which consume significant power for both computation and the cooling of graphics processing units.
Two companies, Oklo and NuScale Power, are at the forefront of this shift, developing small modular reactors to address the grid’s limitations. Oklo is focusing on microreactors designed for direct supply to data centres, aiming to bypass traditional grid constraints. The company recently secured a deal with Meta Platforms for a 1.2-gigawatt system in southern Ohio, signalling a trend where cloud infrastructure operators may take energy supply into their own hands.
NuScale Power, by contrast, is targeting grid-scale deployments. Its most significant project involves a 6-gigawatt system for the Tennessee Valley Authority, intended to serve the eastern United States. A power purchasing agreement for this project is expected to be closed by the end of the year, offering utilities a pathway to secure low-carbon, reliable baseload power to prevent brownouts and mitigate rate hikes.
The competitive landscape for these technologies is evolving, with Oklo diversifying its operations through the recent acquisition of Atomic Alchemy. This move provides Oklo with fuel recycling capabilities and exposure to medical-grade isotope sales. Sam Altman, founder of OpenAI, served as Chair of the Board for Oklo for many years and was an early investor, highlighting the deep ties between the AI and nuclear sectors.
While the potential for nuclear energy to support AI growth is clear, the market remains dynamic. Other diversified industrial conglomerates are also pursuing small modular reactor technology, indicating that the competitive field is still taking shape. Investors are closely monitoring how these developers scale their operations, with Oklo’s microreactors offering shorter deployment timelines compared to NuScale’s larger, grid-focused systems.
