The artificial intelligence (AI) revolution is creating an unprecedented surge in energy demand. The International Energy Agency projects that data centers may account for up to one-third of the anticipated increase in U.S. electricity demand from 2024 through 2026.
Major tech companies are making bold moves into nuclear power to meet their growing energy needs. Microsoft (NASDAQ: MSFT) recently signed a 20-year deal with Constellation Energy (NASDAQ: CEG) to power its data centers, while Amazon has strategically positioned a $650 million data center near Pennsylvania's Susquehanna nuclear plant. Alphabet, the parent company of Google, has joined this nuclear renaissance by investing in advanced nuclear technologies, including fusion power.
These strategic investments signal that nuclear power has become the preferred solution for tech giants' massive energy requirements. Armed with this background, let's explore three nuclear power stocks that could fuel the AI revolution.
Oklo (NYSE: OKLO), backed by OpenAI CEO Sam Altman, has emerged as a front-runner in the next generation of nuclear technology. The company's stock has delivered a remarkable 113% return year to date since its public debut last May, significantly outperforming the benchmark S&P 500.
The company specializes in developing advanced small modular reactors (SMRs), which promise enhanced safety features and operational flexibility in a compact design. Oklo's innovative Aurora powerhouses are scheduled to begin operations in 2027, positioning the company to meet the surging demand for reliable clean energy from tech companies expanding their AI operations.
Early investors have shown strong confidence in Oklo's potential, despite meaningful revenue being several years away. As with most pre-revenue nuclear technology companies, though, investors should expect significant price swings along the path to commercialization.
As mentioned, Constellation Energy recently secured a groundbreaking 20-year agreement with Microsoft to restart a reactor at Three Mile Island. This landmark deal signals growing confidence in nuclear power's role in the AI revolution.
The market has responded enthusiastically to Constellation's strategic moves in the nuclear space, driving its shares up more than 126% this year, vastly outperforming the S&P 500. The company's position as the largest nuclear operator in the U.S. gives it a significant advantage in partnering with tech giants seeking stable, carbon-free power.