Nuclear Energy: The Reasons Behind the New Boom and Companies That Can Capture Its Strong Growth

Nuclear energy has become one of the pillars of the new technological revolution in recent years. Global production reached 2,635 TWh in 2025, its highest level since 2006, while there are currently 77 reactors under construction in 17 countries.

However, this generation still represents less than 10% of the electricity consumed globally, so the renewed interest from companies and governments also responds to the need to significantly expand available capacity in the coming years.

In this context, the industry appears as one of the alternatives to meet an increasingly growing electricity demand. In this sense, the International Energy Agency (IEA) projects that global consumption will increase at an average of 3.6% annually between 2026 and 2030, from about 28,200 TWh in 2025 to 33,600 TWh by the end of the decade.

This means adding around 5,400 TWh in just five years, a volume equivalent to more than double the current nuclear generation. Behind this increase are the electrification of the economy, industrial activity, and, increasingly, data centers.

At the same time, geopolitical volatility and decarbonization goals reinforce the need to incorporate sources that, in addition to reducing emissions, can ensure a stable supply.

From this scenario, Sergio González, Head of Asset Management at Cohen, states that "nuclear energy is experiencing a renaissance". He explains that an activity that seemed to be in decline due to the impact of accidents and its high costs has regained relevance as a constant electricity source, with low emissions during operation and the ability to reinforce the stability of electrical systems.

However, the current momentum is not solely driven by the climate agenda. In this regard, Maximiliano Svriz Levato from Criteria warned that "this time the engine is not climate policy but artificial intelligence", as data centers need reliable sources of firm energy 24 hours a day, even extending contracts between supplier companies and hyperscalers to decades in duration.

Thus, technological demand has joined decarbonization and energy security as a player capable of sustaining the sector's growth and its long-term growth ambitions.

Current Context of Nuclear Energy

The renewed interest in nuclear energy stems from a concrete limitation of the transition. Although solar and wind generation continue to grow, both depend on variable weather conditions, specific geographies, and need the backing of sources capable of delivering electricity continuously.

In this scheme, nuclear has regained attractiveness among the largest companies in the world, which are investing billions of dollars in its development because it combines base generation (continuous and stable), high energy density, and low emissions during operation.

For this reason, more than 20 countries plan to expand or reactivate their nuclear programs, while installed capacity could double by 2050 and contribute nearly 10% of global electricity.

Different Business Models Within the Industry

However, behind this trend coexist very distinct business models and, therefore, they can also adapt to different investment strategies depending on the approach. On one hand, there are the companies that already operate plants and generate income with existing assets.
Among this group, Constellation Energy stands out, one of the largest power generators in the United States and operator of the country's main nuclear fleet, with a market capitalization of around $92 billion. Additionally, the company has begun to directly capture the new demand linked to data centers, as it has agreed to contracts for reactivation of plants and energy supply with companies like Microsoft, Meta, Google, and the U.S. government.
On the opposite end are the developers of new reactors, whose value mainly depends on projects that still need to be realized. Under this concept, Oklo, a U.S. company focused on advanced small-scale nuclear reactors, still does not generate income and records annual losses close to $106 million.
However, it has accumulated agreements with Meta, and with data center operators Switch and Equinix for electricity supply, while also obtained approval from the Department of Energy to advance in the construction of a new nuclear reactor.
Still, its first commercial reactor would not begin operations until the end of the decade, so any technical or regulatory delays could affect a valuation based on income that does not yet exist.
In cases like this, which extend in part of the industry, Svriz Levato emphasizes that, "the market is pricing a narrative, not a cash flow", an important difference when analyzing the opportunities the sector offers.

The energy demand from data centers has opened new opportunities for nuclear companies.
Growth Driven by the Energy Transition

Beyond the differences between established companies and developers who still bet on future projects, a good part of the expected growth for the industry relies on the need to increase the electricity supply without abandoning decarbonization goals.
In this scenario, nuclear energy appears as a complement to renewables, as it can produce electricity continuously and with low emissions during its operation, even when solar or wind generation decreases.
However, expanding its share in the energy matrix still presents a significant challenge. The construction of large nuclear plants requires high investments and timelines that can extend for years, so part of the sector's innovation seeks to reduce those barriers.

In this context, small modular reactors (SMRs) have emerged, aiming to utilize standardized designs and smaller units to simplify their construction and facilitate installation near large consumption centers. Svriz Levato defines these companies as "options for a future that may take years to arrive", as any regulatory or technological delay can have a significant impact on valuations that still do not have sufficient income to support them.

However, the growth of nuclear energy also opens opportunities for other companies that do not exclusively depend on the success of a new generation of reactors. Here appears GE Vernova, an American company specialized in equipment and technologies for power generation and electrical networks, diversifying into solutions for nuclear energy, gas, and hydropower.

In this way, its business can capture both the construction of new generation capacity and the investments needed to modernize the networks that will have to absorb an increasingly higher electrical demand.

Moreover, this exposure is backed by an already consolidated business. According to Cohen, GE Vernova recorded revenues of $37 billion and maintains a contracted portfolio of 70 gigawatts of dispatchable generation, representing more than double the record of electrical demand recorded across the Argentine system during 2025.

Although, this greater solidity also requires looking at the valuation, as the company's stock trades approximately 40% above its estimated fair value of $420.

The Impact of Geopolitics

The energy transition has recently been marked by a significant weight of the geopolitical dimension. The Russian invasion of Ukraine and the volatility of natural gas, as well as the outbreak of war in the Middle East and the consequent closure of the Strait of Hormuz, have shown the cost of depending on a few suppliers and reinforced the need to diversify supply.

In this framework, nuclear energy has been reconsidered not only as a source of low emissions but also as a tool to reduce exposure to external crises.

This logic favors companies like Brookfield Renewable Partners, a global company dedicated to renewable generation and energy infrastructure. Although its portfolio focuses on hydroelectric, wind, and solar assets, it also participates in the nuclear business through Westinghouse Electric, a manufacturer of reactors and technology provider for power plants.

According to Cohen, the U.S. government committed $80 billion to develop new Westinghouse AP1000 reactors. In turn, Brookfield estimates that its stake in the company represents about 7% of its gross revenues.

Therefore, its action combines a diversified exposure to the energy transition with a specific bet on the return of nuclear investment, although its progress will remain conditioned by state support and the execution of long-term projects.

Geopolitical tensions and the closure of Hormuz reinforced the search for greater energy security.

The volatility of the essential component: uranium

As the number of operational or projected reactors increases, so does the need to secure the fuel that allows them to operate. Therefore, uranium has become another of the big beneficiaries of the return of nuclear energy, although its behavior during 2026 also highlighted the risks of investing in this segment of the chain.

After a decade of depressed prices, U3O8, the compound under which uranium is traded, began 2026 with a strong acceleration. Thus, futures reached $101.55 per pound at the end of January, their highest level in two years, but later corrected nearly 18% to a low of $83.50 in March.

Since then, they have recovered some ground and stabilized around $85 in recent months. The January jump was driven, among other factors, by strong financial purchases, while the subsequent correction accompanied the strengthening of the dollar and the general decline of other commodities, mainly due to the closure of Hormuz.

However, the drop in futures was not accompanied by an equivalent deterioration in long-term prospects. While the short-term price retreated after the January peak, the value of long-term supply contracts rose from $89 per pound in January to $95.50 in June.

This divergence is relevant because electric companies secure a good part of the fuel through multi-year agreements, so the evolution of these contracts more clearly reflects expectations about future uranium needs.

Within this segment of the production chain of the industry, Cameco stands out as one of the most established alternatives to expose itself to that scenario. The Canadian company, one of the main Western producers of uranium, has assets in Canada and Kazakhstan and participates in different stages of the nuclear fuel cycle.

Uranium showed strong volatility during 2026.

Additionally, unlike miners that still depend on undeveloped projects, it records around $2.5 billion in revenue and about $430 million in net profit, according to Criteria.

Moreover, its portfolio of long-term contracts allows it to capture the highest demand for fuel without being completely tied to daily market fluctuations.

Therefore, a direct exposure to the structural growth of the nuclear industry, although the strong pullback experienced by futures after the January peak shows that this opportunity is also conditioned by the cycle and volatility of uranium.

A growth opportunity opens up

Ultimately, the nuclear investment thesis is supported by three forces that reinforce each other. The energy transition increases the need for low-emission sources, artificial intelligence raises the demand for constant electricity, and geopolitical fragmentation encourages countries to strengthen their autonomy.

Nonetheless, these prospects do not make all companies in the sector equivalent investments, as each alternative faces different risks. While mining companies depend on uranium prices, infrastructure providers are conditioned by the execution of large projects, and developers of new reactors still need to overcome technical, regulatory, and financial obstacles.

Therefore, the opportunity does not only depend on nuclear energy gaining share in the global matrix, but also on how much of that growth is already reflected in the price of each asset.