Catalysts Powering the Nuclear Comeback in 2025

Key Takeaways

• U.S. nuclear policy is accelerating, with 2025 Executive Orders targeting a 4x increase in capacity by 2050 and streamlining the regulatory process.
• Big Tech is doubling down on nuclear, with Meta and Amazon signing new long-term power purchase agreements to support data center operations and carbon offsets.
• Small Modular Reactors (SMRs) gain military backing, as Oklo secures a key contract for deployment at Eielson Air Force Base.
• AI-driven electricity demand remains strong and hyperscalers maintain or increase capex despite market volatility.
• VanEck’s NLR ETF provides diversified exposure to the full nuclear value chain, from uranium miners to advanced reactor firms and utilities.

2025: The Year of Nuclear

Nuclear energy is no longer an afterthought. In just two to three short years, our national nuclear energy conversation has evolved from (1) decommissioning our aging reactor fleet to (2) extending its regulatory life to (3) recommissioning shuttered reactors, and now we’re (4) talking about building new reactors. With aggressive global policy goals and tech company attention, the focus is sure to stay on nuclear energy as the U.S. and other countries seek to meet their  ever-increasing need for electricity.

Key 2025 Nuclear Energy Catalysts

1. U.S. Federal Executive Orders

In May 2025, the Trump Administration issued a series of executive orders aimed at quadrupling U.S. nuclear capacity to 400 GW by 2050 from approximately 100 GW today. His executive orders also focused on expediting nuclear licensing by placing time limits on the Nuclear Regulatory Commission’s licensing review process. Additionally, his orders also seek to address America’s lack of domestic uranium enrichment and processing capability. The U.S. and much of the world have become increasingly dependent on a select few countries, namely Russia, for enriched uranium.

These executive orders supported the nuclear energy ecosystem, providing investor confidence across the supply chain and raising the prospects of increased investment in nuclear capacity across the board.

2. Tech Giants Continued Commitment to Nuclear Power

2023 and 2024 were marked by numerous announcements from hyperscalers, including commitments to nuclear power purchase agreements and direct equity investments in nuclear start-ups. Microsoft made headlines in late 2023 when it posted a job listing seeking a nuclear engineer to help coordinate the adoption of small modular reactors (SMRs) to power its data centers. 2025 has been clear cut continuation of this trend.

Meta/Constellation PPA Announcement – June 2025

On June 3, 2025, Meta Platforms (META) and nuclear utility Constellation Energy (CEG) announced a 20-year power purchase agreement (PPA) for nuclear power output from the Clinton Clean Energy Center in Clinton, IL. The agreement was unique in that Meta will not use the power it is purchasing. Instead it will offset the tech firm’s less green electricity usage. The investment will help cover the costs of relicensing, upgrades, and maintenance of the facility effectively, extending its life, which was otherwise in doubt before to the announcement.

Amazon and Talen Energy PPA Announcement – June 2025

Shortly after the Meta/Constellation announcement, Amazon (AMZN) and Talen Energy (TLN) announced an expansion of an existing relationship forged in prior years. A new PPA aims to supply electricity to Amazon for operations that support AI and other cloud technologies at a data center campus near Talen’s Susquehanna nuclear power plant in Pennsylvania. The agreement runs through 2042 and also includes commitments to explore the building of SMRs throughout Talen’s Pennsylvania footprint.

3. SMR Projects at Military Outposts

Among the Trump executive orders was a notable provision for the deployment and use of advanced nuclear reactor technologies at military installations. Shortly after the executive order signing, Oklo (OKLO) saw its share price advance rapidly as speculation circulated that it would be selected to supply its Aurora powerhouse SMR for the Eielson Air Force Base in Alaska. Later, the “Notice of Intent to Award” from the Department of Defense was confirmed justifying the hype around Oklo and other advanced reactor companies. As other military branches look to implement the executive order, the market is patiently waiting to see which SMR companies, both private and public, will win contracts and benefit.

4. Continued AI Capex Growth

One of the most significant risks facing the nuclear energy renaissance is a slowdown in infrastructure investment. The most acute example of this was the DeepSeek news that sent tech stocks and nuclear companies spiraling in late January 2025. Based on the relative cost-efficiency of DeepSeek’s model, markets reflected the doubts that the massive AI arms race spending was sustainable or even necessary. However, major hyperscalers have not pulled back their capital expenditure commitments, and US electricity demand remains above last year as well as above levels before the global pandemic market disruptions. These companies have not only maintained capex levels, but in many cases have upped commitments.

Big Tech 2025 Annual Capex Outlooks

Source: CNBC; company reports. For illustrative purposes only.

Diverse Opportunity Set, Broad Implications

The nuclear energy ecosystem is broad and complex. Upstream uranium miners and processors can behave quite differently from advanced reactor companies and downstream utilities that are producing power for industrial, commercial, and residential clients. Each of the nuclear segments may react differently to the various catalysts discussed herein and will likely respond differently to future catalysts, both positive and negative. Therefore, gaining diversified exposure to the nuclear opportunity set can be essential to spread risk, increase broad participation, and prevent the tall task of picking winners and losers of this rapidly evolving trend.

The VanEck Uranium and Nuclear ETF (NLR) offers investors broad exposure to the entire ecosystem, including uranium miners, construction and engineering firms, advanced reactor companies, and nuclear utilities.