Regulators couldn't stop Amazon's (AMZN) nuclear ambitions...
Last March, the e-commerce giant bought a data center next to the Susquehanna nuclear power plant in Pennsylvania.
Amazon planned to connect its data center to the plant. But regulators cried foul...
The problem was the electric meter.
Amazon's proposals were for "behind the meter" energy. That meant the data center would plug a direct line into the power plant instead of buying electricity off the grid.
Regulators said that was a bridge too far. Such a plan would risk upsetting the grid's stability. It could even push some of Amazon's electricity costs onto the people of Pennsylvania.
So last month, Amazon revealed a much larger deal with the Susquehanna plant. Instead of getting behind-the-meter power, Amazon will transition to buying power "in front of the meter" starting in spring 2026.
Amazon's new campus will have to draw power from the same grid as everyone else. While it may be more expensive, Amazon is not in a position to negotiate.
After all, to fuel its artificial-intelligence ("AI") ambitions, Amazon needs all the energy it can get...
AI Data Centers Are Fueling a New Nuclear Power Boom
AI is a major electricity hog because it requires so much data.
To work at scale, AI models need vast server farms housed in data centers that run 24/7. Goldman Sachs says these data centers will drive a 165% increase in electricity demand by 2030.
So tech companies like Amazon are turning to nuclear power as a high-yield, carbon-free electricity source. As a result, a wave of nuclear innovation is sweeping the globe.
Many tech giants are getting interested in nuclear microreactors and small modular reactors ("SMRs")...
These are smaller, portable reactors that they can build and use on-site. Microreactors can produce up to 20 MWe (megawatts of electricity), while SMRs range from 20 to 300 MWe. And they can run either on or off the grid.
In just the past month...
- The U.S. Department of Energy selected two candidates to test microreactors at the Idaho National Laboratory.
- Rolls-Royce was selected as the first company to develop SMRs in the U.K.
- Perhaps most important, the World Bank ended a decadeslong ban on funding nuclear energy.
In short, the atomic race is on around the world.
It's too early to know which energy companies will win. But you don't need to pick just one company to profit from this trend...
Instead, you can gain exposure to the entire nuclear industry by investing in the Global X Uranium Fund (URA). It tracks a basket of companies involved in uranium mining and nuclear equipment.
URA dipped to start the year. But since April, it has entered a strong uptrend. Take a look...
The fund bottomed in April... before soaring 92% to its June 30 peak.
What's more, this move pushed URA to its highest level in more than a decade...
Around 2022, URA was stuck in a range between $17 and $33. But today, the fund is breaking out to its highest level in 13 years.
This is an industry worth paying attention to today. Tech giants are pouring money into AI... which means URA's hot streak is likely just beginning.
The world is starving for nuclear power. And as Amazon's Susquehanna saga shows, the new flood of demand is nonnegotiable.
Make sure you're in position to profit as the atomic renaissance continues.
Good investing,
Sean Michael Cummings
Further Reading
A former secretary of energy for the Trump administration predicted a major shift in nuclear policy – and it's already unfolding. With new regulatory moves and rising demand, the stage is set for the biggest nuclear boom in decades.
A massive blackout recently hit Western Europe. It was a stark reminder of what can happen when an aging grid fails. And with U.S. infrastructure under strain and electricity demand surging, it could soon be time for a long-overdue American electrical grid upgrade.
