Amazon and Google Drive Nuclear Energy Stocks to Record Highs

Amazon and Google partner with nuclear companies to secure reliable, low-carbon power.

• Nuclear energy stocks reach new highs due to Amazon and Google’s power supply agreements.
• Small modular reactors (SMRs) are set to provide low-carbon electricity for AI operations.
• Nuclear energy gains traction as a solution for the tech industry’s rising power needs.

Tech Giants Lead a New Nuclear Era
Nuclear energy stocks soared to record levels this week as Amazon and Google signed landmark agreements to source power from small modular reactors (SMRs). These deals, crucial for powering AI-driven data centers, have sent shares of US-listed SMR developers like Oklo Inc and NuScale Power skyrocketing by 99% and 37%, respectively. The contracts will lead to the deployment of up to a dozen next-generation reactors, marking a turning point for the nuclear sector as it seeks to regain momentum after years of stagnation.

Why AI Needs Nuclear Energy
The rising power demands from AI data centers are driving companies like Amazon and Google to secure reliable, low-carbon energy. These centers consume massive amounts of electricity, making nuclear energy an attractive alternative to fossil fuels. The tech giants’ choice to invest in SMRs, known for their efficiency and safety compared to conventional reactors, signals a growing recognition that renewable energy sources like wind and solar alone are insufficient to meet AI’s increasing energy needs.

Small Reactors, Big Promise
While small modular reactors have long been considered the future of nuclear energy, their progress has been slow due to concerns over cost and reliability. However, these latest deals signal a shift in investor confidence. One industry leader noted, “These large investments show the tech industry’s belief that nuclear energy will be vital to powering the next wave of AI.” The resurgence of interest in SMRs comes at a critical time as the nuclear industry seeks to establish itself as a key player in decarbonization efforts.

Nuclear’s Future
Despite the optimism, experts caution that significant obstacles remain. Critics point out that SMR technology is still largely untested and faces regulatory and financial challenges. Additionally, no SMR projects have yet started construction in the US, and many question whether these reactors can be built on time and within budget. Nevertheless, nuclear developers remain confident that Amazon and Google’s backing will be the catalyst for widespread SMR adoption, ushering in a new chapter for the nuclear energy industry.