Taking the Investment Pulse: Q3 2024

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Markets & Finance

Kayley Deaton

November 14, 2024

American voters have re-elected former President Donald Trump to the White House. Even in the face of a changing administration, nuclear remains strongly bipartisan, and folks across aisles and state borders have different reasons for embracing nuclear. Some are drawn to the fact that it’s this nation’s largest reliable, clean energy source, while others see value in its ability to ensure greater energy independence for the U.S.

Personally, it’s nuclear energy’s bipartisan nature that I’m finding most appealing at the moment. Wall Street investors and big-name customers who are forecasting the next five to 10 years would probably agree with me. Let’s break it down.

Trends

Big Tech: Innovation in technology like advanced computing and artificial intelligence—and the unprecedented amount of energy that it requires—has big tech companies on the lookout for reliable, clean power. According to Goldman Sachs Research, data centers alone currently consume 1-2% of the world’s total electricity, and that’s expected to more than double by the end of the decade. That level of constant energy demand is turning players like Amazon, Microsoft, and Google into nuclear customers.

New Business Models: Data centers and other large energy consumers are also creating an environment for new nuclear business models. The Nuclear Company is a new venture that’s focused on building out a fleet of reactors using existing proven technology—not to own or operate the plants, but to simply develop and sell them to interested customers. This is a model that exists for other energy and large infrastructure projects, and now nuclear power as well.

Project Progress: This quarter brought significant milestones for several nuclear projects and growing confidence in a new nuclear era right alongside it. From Natura Resources’ approved construction permit and the groundbreaking for DoD’s Project Pele microreactor to the finalized loan guarantee for a restart at Palisades Nuclear Power Plant and the historic power deal between Microsoft and Constellation to restart Three Mile Island Unit 1, nuclear technology took some big steps.