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Data Centers to Power Nuclear Energy and Uranium ETFs
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As the demand for AI soars and clean energy needs grow, tech giants are turning to nuclear power to fuel energy-intensive data centers to train and operate the large-scale AI models used in current generative AI applications.
Being an essential component in sustainable and reliable energy generation, the growing interest in nuclear energy to meet the power needs is expected to boost the demand for uranium. Uranium demand is set to rise, driven by AI-driven data centers fueling greater power needs, as well as support from Trump’s executive orders and energy deals.
Additionally, tariffs introduced by President Trump are also causing some headwinds for the metal, increasing the uncertainty surrounding the potential future levies on uranium imports from Canada and Kazakhstan. However, easing tariff tensions could provide some relief to the market.
How Data Centers Are Fueling Uranium Demand
Data centers are energy-intensive, with AI applications consuming even more energy than traditional computing. As a result, most tech giants are shifting toward renewable energy to meet their growing energy needs and exploring nuclear energy as a power source.
Tech giants are increasing their investments in the United States, with AI taking the center stage. As a result, companies are entering into deals for data centers to meet their energy needs. According to CNBC, tech giants like Amazon (AMZN - Free Report) , Google (GOOGL - Free Report) and Meta (META - Free Report) , led by the World Nuclear Association in March, advocated to increase nuclear energy capacity threefold by 2050.
Meta’s recent deal with Constellation Energy (CEG - Free Report) marks the latest development in collaboration between tech and energy companies to meet the escalating power demands. According to CNBC, Meta agreed to a two-decade-long deal with the energy company to buy around 1.1 gigawatts of energy from it, starting from June 2027.
During his visit to Saudi Arabia in early May, President Trump announced Saudi Arabia's $600 billion commitment to invest in the United States. According to a White House fact sheet, Saudi Arabia’s DataVolt is advancing plans to invest $20 billion in AI data centers and energy infrastructure across the United States.
Nuclear Energy to Get a Boost From Trump’s Order
With the Trump administration providing strong backing, nuclear energy is set to see a resurgence. President Trump signed executive orders, looking to scale up nuclear energy and helping lift the uranium market out of its current slump and reignite investor interest. Analysts expect long-term confidence in uranium supply, according to Reuters.
Per World Nuclear News, President Trump’s executive orders aim to quadruple the capacity of U.S. nuclear energy from 100GW to 400GW by 2050. The executive orders call for the development of a robust domestic supply chain for nuclear fuel.
This aligns with Trump’s vision to establish the United States as a global AI leader and reduce the dependency of the United States on global enriched uranium.
SMRs Also Spark a Bullish Turn in Uranium Demand
As global economies push for a transition to cleaner energy sources, the demand for more nuclear reactors grows. However, high costs and project management have always been areas of concern affecting large nuclear plants, often leading to budget overruns and delays.
The growing interest in small modular reactors (SMRs) could address these challenges, driving increased demand for uranium. This could help nuclear plants become smaller, simpler and easier to construct, speeding up the deployment of new plants to meet the rising clean energy demand.
With no operational SMRs currently in the United States, the White House has called for expedited regulatory approvals for reactors, as quoted on CNBC. According to Reuters, industry experts anticipate that President Trump’s policy will boost SMR rollouts, driving capital inflows and extending reactor lifespans.
Why Uranium Prices Could Take Off Soon?
Recently, uranium prices have been in a slump due to tariff-induced recession fears and geopolitical instability. Institutional investors have also turned their attention away from the metal. However, recent deals surrounding AI data centers, growing investment in nuclear energy and supply constraints are expected to provide an upward momentum to uranium prices.
Unlike other energy sources, uranium prices have a minimal effect on the overall cost of nuclear power generation, highlighting the inelastic nature of the metal’s pricing. This could result in sustained higher prices without dampening demand, supporting the upward price trajectory of the metal.
With uranium spot prices currently around $71.5, the current price levels present a compelling buy-the-dip opportunity for investors and buyers alike.
ETFs to Consider
Uranium demand is poised to surge, driven by increasing nuclear adoption to power energy-hungry data centers and tech companies looking to meet clean energy goals.
With an increasing focus on nuclear energy and uranium demand set to grow substantially, uranium ETFs are an appealing strategic portfolio addition for the long term.
Investors can consider Global X Uranium ETF (URA - Free Report) , VanEck Uranium+Nuclear Energy ETF (NLR - Free Report) , Sprott Junior Uranium Miners ETF (URNJ - Free Report) , Themes Uranium & Nuclear ETF (URAN - Free Report) and RangeNuclear Renaissance Index ETF (NUKZ - Free Report) to capitalize on the uranium market's upside potential.
With a one-month average trading volume of about 3.19 million shares, URA is the most liquid option, offering investors easier entry and exit while minimizing the risk of significant price fluctuations, which is ideal for active trading strategies.
URA has also gathered an asset base of $3.27 billion, the largest among the other options. Regarding charging annual fees, URAN is the cheapest option, charging 0.35%, and is more suitable for long-term investing.
Performance-wise, URA outpaced other funds significantly, gaining 9.89% over the past month, with URNJ coming in second, adding 8.54% over the past month.
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Data Centers to Power Nuclear Energy and Uranium ETFs
As the demand for AI soars and clean energy needs grow, tech giants are turning to nuclear power to fuel energy-intensive data centers to train and operate the large-scale AI models used in current generative AI applications.
Being an essential component in sustainable and reliable energy generation, the growing interest in nuclear energy to meet the power needs is expected to boost the demand for uranium. Uranium demand is set to rise, driven by AI-driven data centers fueling greater power needs, as well as support from Trump’s executive orders and energy deals.
Additionally, tariffs introduced by President Trump are also causing some headwinds for the metal, increasing the uncertainty surrounding the potential future levies on uranium imports from Canada and Kazakhstan. However, easing tariff tensions could provide some relief to the market.
How Data Centers Are Fueling Uranium Demand
Data centers are energy-intensive, with AI applications consuming even more energy than traditional computing. As a result, most tech giants are shifting toward renewable energy to meet their growing energy needs and exploring nuclear energy as a power source.
Tech giants are increasing their investments in the United States, with AI taking the center stage. As a result, companies are entering into deals for data centers to meet their energy needs. According to CNBC, tech giants like Amazon (AMZN - Free Report) , Google (GOOGL - Free Report) and Meta (META - Free Report) , led by the World Nuclear Association in March, advocated to increase nuclear energy capacity threefold by 2050.
Meta’s recent deal with Constellation Energy (CEG - Free Report) marks the latest development in collaboration between tech and energy companies to meet the escalating power demands. According to CNBC, Meta agreed to a two-decade-long deal with the energy company to buy around 1.1 gigawatts of energy from it, starting from June 2027.
During his visit to Saudi Arabia in early May, President Trump announced Saudi Arabia's $600 billion commitment to invest in the United States. According to a White House fact sheet, Saudi Arabia’s DataVolt is advancing plans to invest $20 billion in AI data centers and energy infrastructure across the United States.
Nuclear Energy to Get a Boost From Trump’s Order
With the Trump administration providing strong backing, nuclear energy is set to see a resurgence. President Trump signed executive orders, looking to scale up nuclear energy and helping lift the uranium market out of its current slump and reignite investor interest. Analysts expect long-term confidence in uranium supply, according to Reuters.
Per World Nuclear News, President Trump’s executive orders aim to quadruple the capacity of U.S. nuclear energy from 100GW to 400GW by 2050. The executive orders call for the development of a robust domestic supply chain for nuclear fuel.
This aligns with Trump’s vision to establish the United States as a global AI leader and reduce the dependency of the United States on global enriched uranium.
SMRs Also Spark a Bullish Turn in Uranium Demand
As global economies push for a transition to cleaner energy sources, the demand for more nuclear reactors grows. However, high costs and project management have always been areas of concern affecting large nuclear plants, often leading to budget overruns and delays.
The growing interest in small modular reactors (SMRs) could address these challenges, driving increased demand for uranium. This could help nuclear plants become smaller, simpler and easier to construct, speeding up the deployment of new plants to meet the rising clean energy demand.
With no operational SMRs currently in the United States, the White House has called for expedited regulatory approvals for reactors, as quoted on CNBC. According to Reuters, industry experts anticipate that President Trump’s policy will boost SMR rollouts, driving capital inflows and extending reactor lifespans.
Why Uranium Prices Could Take Off Soon?
Recently, uranium prices have been in a slump due to tariff-induced recession fears and geopolitical instability. Institutional investors have also turned their attention away from the metal. However, recent deals surrounding AI data centers, growing investment in nuclear energy and supply constraints are expected to provide an upward momentum to uranium prices.
Unlike other energy sources, uranium prices have a minimal effect on the overall cost of nuclear power generation, highlighting the inelastic nature of the metal’s pricing. This could result in sustained higher prices without dampening demand, supporting the upward price trajectory of the metal.
With uranium spot prices currently around $71.5, the current price levels present a compelling buy-the-dip opportunity for investors and buyers alike.
ETFs to Consider
Uranium demand is poised to surge, driven by increasing nuclear adoption to power energy-hungry data centers and tech companies looking to meet clean energy goals.
With an increasing focus on nuclear energy and uranium demand set to grow substantially, uranium ETFs are an appealing strategic portfolio addition for the long term.
Investors can consider Global X Uranium ETF (URA - Free Report) , VanEck Uranium+Nuclear Energy ETF (NLR - Free Report) , Sprott Junior Uranium Miners ETF (URNJ - Free Report) , Themes Uranium & Nuclear ETF (URAN - Free Report) and Range Nuclear Renaissance Index ETF (NUKZ - Free Report) to capitalize on the uranium market's upside potential.
With a one-month average trading volume of about 3.19 million shares, URA is the most liquid option, offering investors easier entry and exit while minimizing the risk of significant price fluctuations, which is ideal for active trading strategies.
URA has also gathered an asset base of $3.27 billion, the largest among the other options. Regarding charging annual fees, URAN is the cheapest option, charging 0.35%, and is more suitable for long-term investing.
Performance-wise, URA outpaced other funds significantly, gaining 9.89% over the past month, with URNJ coming in second, adding 8.54% over the past month.