What are Small Modular Reactors (SMRs) and why are they important?

Small Modular Reactors are smaller, factory-built nuclear reactors that can be transported to installation sites. They're important because they offer several advantages over traditional nuclear plants: they're more affordable to build, can be deployed faster, have enhanced safety features, and can be scaled to meet varying power needs. Companies like NuScale Power (SMR) and BWX Technologies (BWXT) are developing this technology to provide reliable baseload power for AI data centers and other applications.

How does AI impact energy demand?

AI systems, particularly large language models and data centers, require enormous amounts of electricity to run. Training a single AI model can consume as much energy as hundreds of homes use in a year. As AI adoption accelerates, data centers are projected to consume more electricity than some entire countries. This unprecedented surge in power demand creates both challenges for the grid and opportunities for energy providers who can deliver reliable, consistent power at scale.

Why is nuclear energy well-suited for powering AI infrastructure?

Nuclear energy provides "baseload power" - consistent, reliable electricity 24/7, regardless of weather conditions. Unlike wind and solar, which produce intermittent power depending on conditions, nuclear plants can run continuously with extremely high reliability. This consistency is crucial for data centers and AI infrastructure that cannot tolerate power interruptions. Additionally, nuclear is a zero-carbon energy source, helping tech companies meet sustainability goals while satisfying their massive power requirements.

What is "baseload power" and why does it matter?

Baseload power refers to the minimum amount of electricity needed to meet fundamental demand, operating continuously throughout the day and night. It's the foundation of a reliable electric grid. While solar and wind power are intermittent (only generating when the sun shines or wind blows), nuclear plants provide steady, reliable power regardless of weather conditions or time of day. This reliability is essential for critical infrastructure like AI data centers that require constant, uninterrupted electricity to function properly.

8 handpicked stocks

Nuclear Energy Boom

AI data centers need power, and lots of it. This carefully selected group of nuclear energy stocks represents companies that are positioned to meet the surging electricity demands of the AI revolution. Our professional analysts have identified these opportunities at the intersection of clean energy and technological advancement.

Han Tan | Market Analyst

Updated 2 days ago | Published at mai 26