The nuclear energy sector is entering a development cycle that could last for decades. The immense electricity demands of data centers are converging with government policies aimed at expanding nuclear capacity, creating a powerful combined force. At the same time, large-scale investments by the United States and other nations in next-generation reactors and their fuel supply chains have carved out clear development paths for publicly traded companies in this space. From upstream miners to core technology developers and critical fuel suppliers, different segments of the nuclear industry chain stand to benefit. For long-term investors with a horizon extending into the next decade, this trend warrants close attention.
For investors looking to participate in this trend, players at various stages are already emerging across the industrial chain. In the upstream segment, uranium mining serves as the foundation. Cameco (CCJ), one of the world’s top uranium producers, is headquartered in Canada and holds high-grade uranium mines in Saskatchewan. The company also has stakes in joint ventures in Kazakhstan and in Westinghouse Electric, a major global reactor manufacturer, allowing it to benefit both from fuel demand and nuclear facility construction.
In the downstream space, several companies are dedicated to developing advanced nuclear reactors, namely small modular reactors. This flexible approach—factory-fabricated and assembled on-site—holds the potential to resolve some of the challenges associated with traditional nuclear power, making it particularly suitable for remote areas or hyperscale data centers seeking off-grid power supply. GE Vernova (GEV) is currently benefiting from robust market demand for its gas turbine equipment, while its business portfolio also covers a broad range of power generation equipment. In the small modular reactor space, the BWRX-300 reactor, developed in partnership with Hitachi, is currently the only such project under construction in North America. Located at Ontario Power Generation’s Darlington site, it is scheduled to enter commercial operation in 2029. Additionally, the U.S. Department of Energy has awarded US$400 million to the Tennessee Valley Authority to accelerate licensing and deployment of this reactor design.
For investors with a higher risk tolerance, Oklo (OKLO) and NuScale Power (SMR) are two early-stage small modular reactor developers that have yet to generate revenue. They are currently seeking to secure commercial agreements ahead of technology deployment in the 2030s. Oklo has already reached an agreement with Meta Platforms, while NuScale has a project in Romania and hopes to secure another partnership with the Tennessee Valley Authority.
Reactors cannot operate without fuel, and Centrus Energy (LEU) plays a critical role in this regard. It is the only company licensed by the U.S. Nuclear Regulatory Commission to produce high-assay low-enriched uranium, the fuel required for next-generation reactors, including small modular reactors and microreactors. At the same time, Centrus also supplies low-enriched uranium for conventional nuclear power plants. Historically, part of its procurement has come from international sources, including Russia. Under the Russian Uranium Import Ban Act, U.S. companies must phase out Russian-origin nuclear fuel. In response, Centrus has secured US$900 million from the Department of Energy to expand its uranium enrichment facility in Piketon, Ohio, with new production capacity expected to come online in 2029.
