Nuclear Renaissance Attracts Record Investment Amid AI Energy Demands

Nuclear energy is experiencing a renaissance driven by AI data centre power demands and net-zero commitments. Nuclear startups received approximately one-fifth of all climate venture funding during the first nine months of 2025, while publicly traded nuclear companies enjoyed a significant stock rally.

Swedish SMR Initiative

Swedish state utility Vattenfall and industrial consortium Industrikraft have signed an agreement to co-invest in small modular reactors at the Ringhals site on Sweden's Värö Peninsula. The consortium, formed by major industrial players including ABB, Volvo Group, and SAAB, will invest SEK 400 million for early-stage development.

Fuel Supply Chain Advances

Standard Nuclear closed a $140 million Series A to produce high-assay, low-enriched uranium fuel in TRISO particle form for next-generation reactors. The company plans to ramp annual output to over two metric tons across multiple US sites by mid-2026, addressing critical supply chain bottlenecks.

Global Expansion

In China, Unit 2 of China National Nuclear Corporation's indigenous reactor technology achieved a milestone, demonstrating the country's continued advancement in nuclear capabilities.

Valuation Concerns

However, investor sentiment is mixed. Small modular reactor company Oklo saw shares gain more than 200% last year despite generating no revenue, prompting some analysts to urge caution. Green Alpha Advisors' Garvin Jabusch noted that as fundamentals cannot justify current valuations for many nuclear stocks, the sector may see a pivot.

The convergence of AI and energy demands is reshaping utility planning, with virtual power plants gaining attention as a solution to meet gigawatts of planned data centre loads while managing grid reliability and costs.