Advanced nuclear reactors could be the solution for tech companies that need more reliable energy while reducing their use of fossil fuels. Companies such as Amazon, Microsoft, and Google have already invested in this next generation of nuclear innovation, and some of these investments are being opened up to the public. But where should you look if you want to be a part of this development? We have listed some of the most interesting companies in the space today.
Emissions have to go down as energy demands go up. This is the problematic equation that tech companies face as the increased use of AI means that their data centers consume more and more energy, the source of which is inevitably burning fossil fuels.
The nuclear industry is on the cusp of a revolution, where the next generation of reactors are safer, more efficient, and can run on recycled fuels. These innovations have drawn the eyes of tech giants who are looking to secure their energy supply in a fossil-free future.
Microsoft, and its founder Bill Gates, are pushing the development of advanced nuclear forward. Image by efes from Pixabay
The Race To Next-Generation Nuclear: Who Is In?
Many tech companies have recently invested in nuclear energy to cover their energy demand, recognizing that as fossil fuels are phased out, renewable energy won’t reliably replace them. These investments aren’t limited to preserving old plants or doubling down on existing energy. A significant portion of these investments are being put into new generation, advanced nuclear technologies that can power smaller and safer reactors.
These aren’t small investments, either. The size of these investments from notable people and companies in the tech sector shows a great deal of confidence in the role of nuclear in the future of energy generation. Some examples include:
- In a financing round led by Amazon’s Climate Pledge fund, $500 million was raised for X-Energy to bring more than 5 gigawatts of advanced nuclear energy online in the U.S. by 2039. The round was joined by, among others, Citadel founder and CEO Ken Griffin, affiliates of Ares Management Corporation, and the University of Michigan.
- Alphabet – the parent company of Google – entered an agreement with Kairos Power to construct up to seven advanced nuclear reactors, providing 500 megawatts which could be online as early as 2030.
- Microsoft is looking to integrate advanced nuclear reactors into its energy mix, posting a job offering for a nuclear energy expert focusing on new-generation nuclear in 2023. Microsoft founder Bill Gates is also a backer of the advanced nuclear company TerraPower.
How To Invest In Advanced Nuclear Solutions
The keen reader may have spotted a common theme among these investments. The companies behind these investments are all in great need of more reliable energy to power server farms and data centers – a reaction to the growth of AI and the expected increase in data usage that it will bring. While this has brought with it a boom in investments in the advanced nuclear sector, some companies may not have the same success if the energy demand from AI plateaus.
Of course, new-generation nuclear can find a myriad of applications outside of powering data centers, and the most promising companies will continue to grow and utilize this source of clean energy elsewhere if needed. As with all investment decisions, diversification is key, and there are no guarantees that your investments will pay back. Don’t invest what you can’t afford to lose, and consult a professional if you’re uncertain.
If you want to invest in and support the future of nuclear energy, there are a few different ways to do so. While most companies you read about in headlines, including X-Energy and Kairos Power, are private companies, other companies focusing on advanced nuclear have gone public in recent years, opening them up for investments from the public.
Investors can also look into diversified companies that support the development of advanced nuclear, for example in the defense or engineering sectors. You can also invest in exchange-traded funds that offer exposure to the nuclear ecosystem, as some of them include meaningful exposure to innovations in the sector.
Advanced Nuclear Companies To Keep Your Eyes On
As mentioned previously, next-generation nuclear is a market in its early stages, with limited public investment opportunities, and of which the future is still uncertain. While not without risk, a diversified investment spread across multiple companies can be a good way to engage with this market while supporting the development of crucial next-generation reactors. To help you along the way, here are some public companies in the field that you should keep your eyes on:
- NuScale, with projects in Ohio, Pennsylvania, Quebec, Asia, and Europe, most notably a 462MWe power plant in Romania.
- Oklo, developing small-scale reactors running on recycled uranium. Currently, Oklo is aiming to start its first project in Idaho in 2026, with the ambition of having the reactor running by 2027.
- BWX Technologies, a veteran in the game, was involved in the Manhattan Project and has had a heavy focus on advanced nuclear since 2009. The company is also a front-runner in nuclear fuel innovation.
- Kepco Engineering and Construction Company, a diversified energy company based in Korea, operates in nuclear, thermal, and other clean energy sources. For years, the company has been developing an off-shore advanced nuclear reactor, aiming for deployment in 2031.
Next-generation nuclear is a fast-moving sector ripe with innovation and development. With sufficient investments, it can push fossil fuels out of the energy mix in places where renewable electricity has been insufficient. By financing the front runners, more advanced nuclear technologies can be implemented, concerns about waste management and safety can be overcome, and even more clean energy can be produced.
