Cloud providers sign long-term deals with nuclear plants to secure 24/7 power for AI data centers amid surging electricity needs.
Nuclear-focused ETFs are attracting attention as AI-driven electricity demand accelerates reactor projects. The Global X Uranium ETF (URA) holds $6.86 billion in assets, offering pure uranium exposure, while the Themes Uranium & Nuclear ETF (URAN) targets Japanese and Korean reactor builders at lower costs.
US data center power consumption is projected to rise from 5% to 15% of total generation within five years, straining a grid that has seen minimal growth since 2000. Wind and solar alone cannot meet the 24/7 baseload demand of AI training clusters, increasing reliance on nuclear energy.
Major tech firms are securing nuclear power directly. Microsoft signed a 20-year, 835 MW agreement with Constellation Energy to restart Three Mile Island Unit 1, a $1.6 billion project slated for 2027. Amazon and Google have also locked in deals with nuclear providers to power their data centers.