Nuclear Meets AI: Which Companies Will Reflect Gains First?

To make use of resources, the primary requirement is intelligence. The capacity to perceive reality and organize its assets determines the level of civilizational development. In this light, artificial intelligence is a historical breakthrough in which automated intelligence can be integrated into every aspect of civilizational development, serving as an amplifying force.

Although current AI models are far from robust, it is already clear that AI should not be viewed as a bubble just waiting to burst. Rather, AI should be viewed as a membrane on top of existing digital infrastructure, connecting disparate nodes with AI agents. Case in point, within Google’s existing ecosystem of apps, Agent2Agent (A2A) protocol allows AI to roam the infrastructure nodes to deliver a new level of usefulness.

And there is no ceiling for AI integration and interoperability. If a thought can be had by a human, AI could interpret it. If a task can be envisioned, AI could pursue it. Ultimately, AI agents will join robotic platforms to complete tasks in the physical world. But the underlying requirement for the AI civilizational layer is power. For investors, this translates to exposure in key energy sectors.

Nuclear Energy Density Renewal

Although nuclear power took PR hits from the Chernobyl and Fukushima Daiichi disasters, alongside the Three Mile Island incident, it remains the most energy-dense, cost-effective, safe and reliable source of power generation.

Having a more efficient government unbothered by PR, China has gone the farthest in harnessing nuclear power by developing the world’s first 4th gen nuclear power plant in Shandong Province in late 2023. This is on top of the world’s first-ever thorium-based reactor in the Gobi Desert, utilizing thorium, a more abundant radioactive element than uranium.

At present, China is tied with France in the number of nuclear reactors, at 58 (56.9 GW capacity) vs 57 respectively, and still lagging behind 94 nuclear reactors in the US. However, by 2030, China is headed to the nuclear top with at least 30 new reactors under construction, adding 34.4 GW of capacity, per WNA figures.

Consequently, just as the USG intervened in China’s development by implementing strict export controls on AI chips, so will the federal government have to build up its power base for the AI layer. In Washington, there is already a bipartisan consensus that America has to win the AI race, expressed by the Treasury Secretary Scott Bessent at the Milken Institute.

President Trump is completely aligned with this sentiment, having hosted Larry Ellison’s Stargate project shortly after his inauguration, in addition to issuing executive orders (EOs) toward “Unleashing American Energy”.

The overall plan is to quadruple the United States’ nuclear capacity over the next 25 years.

“We’ve got enough electricity to win the AI arms race with China… What we do in the next five years related to electricity is going to determine the next 50 because it’s the first time in history where electricity can be translated into intelligence.”
— Interior Secretary Doug Burgum at the Oval Office on May 23rd, following a new series of President Trump’s EOs.

Which Companies Will Supply the AI Energy Demand?

According to the International Energy Agency (IEA) report in April, the world will need 30% more energy on a yearly basis for accelerated servers (AI workloads). This sector accounts for half of the net increase in global data centers’ energy consumption. And as main geopolitical players, China and the US are projected to account for 80% of that growth up to 2030.

In early 2024, Amazon (NASDAQ:) was the first to set the trend, having tagged Talen Energy for its Susquehanna nuclear plant to deliver up to 960 MW of power. However, this plan was foiled by FERC, capping the plan by 3x to only 300 MW. The possibility still exists for Talen Energy to successfully appeal FERC’s ruling, potentially meeting Amazon’s immediate energy needs.

Microsoft (NASDAQ:) had greater regulatory success, being the first to sign a 20-year deal with Constellation in September 2024. In fact, this involved restarting the aforementioned Three Mile Island’s nuclear reactor in Unit 1. Constellation Energy (NASDAQ:) is the primary beneficiary of AI demand, having the largest fleet of nuclear reactors.

In October 2024, Alphabet’s Google (NASDAQ:) made a deal for small modular reactors (SMRs) provided by Kairos Power, still not available for public trading. Representing advanced technology also adopted by the EU, SMRs are to add 500 MW worth of power to the U.S. electricity grid.

After the dampened Talen plans, in the same month, Amazon also launched its SMR ambitions with Energy Northwest, a publicly owned municipal corporation not available for public trading.

Amazon delegated the responsibility of delivering up to 5 GW of power by 2039 to privately held X-Energy Reactor Company.

Interestingly, Ken Griffin’s Citadel, notable for its role in GameStop (NYSE:) short squeeze, helped finance X-Energy’s SMR push with a $500 million round, as a part of Amazon’s Climate Pledge Fund.

Most recently on Tuesday, Constellation Energy gained Meta Platforms (NASDAQ:) as another AI data center client, having inked a 20-year deal just like Microsoft.

In short, the Big Three hyperscalers, together with Meta, will be tied to the American energy surge. Accordingly, investors should keep an eye on their investor relations’ news section. And just like in the EU, it is clear that the future lies in scalable and compact SMRs.

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Neither the author, Tim Fries, nor this website, The Tokenist, provide financial advice. Please consult our website policy prior to making financial decisions.

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